Damage and returns are a problem with packaging, not shipping
Statistics show that at least 30% OF ALL PRODUCTS BOUGHT ONLINE are returned, with 20% of all returns being due to damage.
So for every 100 products you sell, chances are that 6 come back just because your packaging wasn’t strong enough to keep them safe.
It’s easy to say “the handlers should’ve been more careful!”. And you’re probably right. But since you can’t control what happens after products leave your warehouse, you need to focus on the things you can change.
That means taking a long, hard look at how packaging affects damage and return rates – and seeing what you can do to keep your products safe.
CONTACT BLAKE MADE today to discuss sustainable bespoke premium packaging that protects your products and keeps your customers buying!
Key facts about how packaging affects damage and return rates
- Damage and return rates point to a problem with packaging design.
- This could be costing you around £100,000 every year on average.
- Bespoke premium packaging looks great and keeps products safe.
- Blake Made offers complete design services for sustainable packaging.
Why you need transit-proof packaging
PACKAGING is often the FIRST BRAND TOUCHPOINT that connects you with a potential lifelong customer. That’s why growth-focused brands invest in LUXURY VS STANDARD PACKAGING to ensure their products stand out from the competition.
The thing is, the average package is DROPPED 17 TIMES en route to its destination. And it doesn’t matter how incredible your products look online if the one that arrives is battered and broken. That’s the quickest way to ruin a great UNBOXING EXPERIENCE!
But understanding the hazards involved in product delivery is the first step to guarding against them. That’s why it’s so important to work with an experienced bespoke packaging company who knows how to design around these risks.
At Blake Made, we balance outstanding aesthetic design with high-quality SUSTAINABLE MATERIALS that withstand the drops, stacking, and constant jostling of transportation. By designing packaging for real-world conditions, not just store shelves, you can reduce your damage and return rates and maximise your profits.
The cost of damage and returns
The price customers pay for your product covers a lot more than production and profit. It also needs to cover the costs of handling, admin, shipping, and dozens of other factors.
When someone returns a damaged item for you to replace, you end up paying all of these costs again. For example, a typical return and replacement could cost you:
But that’s just one instance. To find the full cost of damage and returns, you also need to know your damage rate:
Damage rate = Damaged shipments / Total shipments x 100
Damage rates exceeding 1% signal an urgent need to solve a root problem.
A simple formula you can use to calculate the total cost of product damage and returns is:
Shipments per month x Damage rate x Cost per damage incident
Assuming 10,000 shipments per month, a 1% damage rate, and a cost of £47 per incident, your monthly damage and return cost could be:
10,000 x 1% x £47 = £4,700 per month
Spread across a full year, you could be losing £56,400 just because your packaging wasn’t strong enough to keep your products safe.
And that’s a conservative estimate. UK retailers spend AN EVERAGE OF £7,646 A MONTH managing returns and replacements due to damage. That’s £91,752 a year wasted on average!
It’s not just about the money you spend
One incident of damage and return is more than just a single expense. It’s also a coin flip on whether or not you lose future sales as well.
That’s because 51% of people are UNLIKELY TO REPURCHASE after receiving a damaged product.
Harvard Business School reports that the customer lifetime value of a loyal customer is, on average, 10 TIMES THE VALUE of their first purchase.
So using cheap OFF-THE-SHELF PACKAGING or missing out on leading PACKAGING DESIGN TRENDS could be costing you more than you even know!
That’s just one reason why PREMIUM PACKAGING IS WORTH THE INVESTMENT.
Where does packaging fall short?
Packaging that doesn’t catch the eye always risks LIMITING YOUR SALES. But even the finest PRESENTATION PACKAGING in the world won’t boost profits if it fails to protect what’s inside.
Features that increase the risk of damage and returns include:
- Cheap materials: Low-quality boards are at greater risk of denting and tearing
- Oversized boxes: Too much space lets products move around during transit, constantly knocking against the inside
- Poor padding: Lack of cushioning means every bump and impact affects the product
- Weak structure: Packaging without rigidity or reinforcement can collapse during stacking
- Inadequate sealing: Unsecured packaging can open before it reaches its destination, spoiling the unboxing experience
When you work with Blake Made, we design premium packaging tailored to your brand that strategically eliminates these risks to help keep your products safe.
How Blake Made improves your packaging
From robust e-commerce boxes to elegant protective mailers, Blake Made creates bespoke premium packaging that elevates your brand and protects your products.
But it’s not just a one-off service. That’s because our PROVEN 4-PART APPROACH grows with you as the needs of your brand change, ensuring continuous improvement that drives measurable growth.
Blake Made packaging is crafted from non-plastic, recycled, and recyclable materials, helping you reduce waste and make a positive impact. So not only can you drive repeat business by delivering pristine products, but you also build a positive reputation by meeting your environmental goals!
For more than 20 years, international businesses and brand-new startups have relied on Blake Made for bespoke sustainable premium packaging. CONTACT US today to find out how we can support your business growth.
