Whilst in transit, you have no control over this – but what you can do is set your delivery up for success with packaging.
In this article, we explore ways damaged shipments can cause problems for your business, and how bespoke packaging can be used to prevent it.
Ways damaged shipments impact business
1. Reputation
The reputation of your business is undoubtedly a main driver in its growth and financial performance. With a combination of technology and the power of social media today, bad experiences can quickly be shared online for the world to see. Poor reviews are a huge turn off for a potential customer.
Consumers have high expectations on product delivery, and damage is something that isn’t tolerated. In fact, the statistics speak for themselves.
A Voxware study found that 30 percent of consumers are less likely to purchase from a business who has failed to deliver an item on-time, which includes delays due to damage.
On top of this, 57 percent of consumers would avoid using a business again if they had a negative delivery experience – and in what situation is damage a positive experience? Never.
2. The cost of replacements
Products that become damaged in transit need to be replaced. But the financial impact goes beyond the direct costs of a replacement. The broader picture includes logistics costs of another delivery. Then there’s the operational costs of lost time in the production line. Think about the time it takes to communicate with your customer and arrange a replacement as well. On top of that, time and money has been spent by your marketing and sales department occurred to get this customer converted and those costs would be lost if you loose the customer again.
In short, there’s a lot of costs involved, which could otherwise be avoided with a stronger packaging solution.
3. Sustainability
In business, it’s not all about the money. Responsible businesses consider the environment costs connected with damaged shipments, and it actually pays to do so. Nearly 1 in 3 consumers in 2021 claimed that they have stopped purchasing certain brands or products because they had concerns related to sustainability.
Replacing a damaged shipment incurs a huge sustainability cost. Not only is the manufacturing process duplicated, but additional transit miles must be made.