However, whilst tertiary packaging may not ever be visible to the end consumer, its influence on the success of ecommerce operations cannot be overlooked.
In this article, we'll explore the hidden costs of inadequate tertiary packaging in ecommerce and why investing in proper tertiary packaging solutions is crucial for business success.
The importance of tertiary packaging in ecommerce
Tertiary packaging plays a pivotal role in streamlining logistics operations and ensuring the smooth movement of goods from manufacturers to retailers. It's responsible for maximising supply chain efficiency and protecting products during transit, storage, and distribution. While primary and secondary packaging focus on protecting individual items and marketing to consumers, tertiary packaging is designed to safeguard large quantities of products during transit.
In short, without a proper tertiary packaging solution, efficiencies in storage and handling fall drastically, boxes become more susceptible to damage, and the entire supply chain will experience significant disruptions.
Here's a closer look at the consequences of inadequate tertiary packaging:
1. Increased product damage and returns
One of the most significant hidden costs associated with inadequate tertiary packaging is product damage and returns. In the e-commerce sector, product damage translates directly into costly return processing, refund expenses, negative customer reviews, and potential loss of customer loyalty.
Statistics show that the average return rate in e-commerce ranges from 20 to 30%. On top of this, 34% of packaging-related returns are due to product damage.
And when a product is returned due to damage, the costs quickly add up. From additional transportation fees to customer service and labour costs to process returns. Then there’s the cost of storing returned items and even the environmental costs to think about.
The best way to limit these costly returns? A tertiary packaging solution that maximises protection.
