Damaged Pack… How to calculate the loss?

With the value of damaged packaging being much more important than you might know, ISTA testing is a worthwhile investment for any eCommerce business.

More users than ever since are now giving their shopping time online rather than going to shops. This is excellent advice for retailers and brands, increasing their eCommerce offerings.

One crucial component of the benefit of eCommerce brands is their primary product packaging, specifically, whether that packaging is eCommerce-ready and sturdy enough to succeed at the consumers’ home. It should require perfect conditions every single time – regardless of how it is handled on its journey.

For brands that haven’t yet advanced in e-commerce-ready packaging, the broader economic, reputational and environmental cost of the damaged pack. It goes far beyond the direct cost of substituting the damaged item – and could be much higher than the profit.

A riskier business

Ecommerce naturally means a more significant risk of damage to items, which is why eCommerce-ready primary packaging is crucial if brands are to adhere to high consumer expectations. Products can see and bought online and then transported directly to customers through a process. It demands many more touchpoints and risk of loss than that of traditional retail. The average eCommerce pack is dropped 17 times on the route.

It may not come as a wonder then to learn that 10% of the packaging-related recall due to goods damage. And if a product/packaging breaks, it not only requires to be replaced and pretends a reputational threat, but it also risks destroying other items through contamination.

Also, one thing, if packaging damage, the user thinks the product also in damaged condition and hesitates to take it.

This acts as a significant risk when e-commerce return measures are already between 20% and 30%, which is more than twice the 9% regular retail return rate. Fifty-seven percent of clients expect a full payment if their package reaches damaged.

Reputational cost

A business’s fame wholly linked with its financial performance. Customers have high expectations about the performance of eCommerce products and stoppages. Damage and shortage can not be tolerated.

The statistics for this deliver for themselves. Forty-one percent of users experience an adverse impact on the brand image when a shipment is lost, suspended, or arrives damaged. And 39% of brands experience decreased customer support under the same circumstances.

39% of online users will not repeat their buying if they experience inadequate packaging. And in the US, this increases to 79% of customers if their delivery is damaged. This exhibits how crucial packaging is to customer satisfaction and, ultimately, retention.