When deciding upon the best protective packaging to suit your products, many factors need to be taken into consideration. Damage analysis is key to driving this decision – it’s not just about cost. Buying the cheapest solution can send costs rocketing elsewhere in the business, creating a costly false economy.
With a vast range of protective packaging now available such as air pillows, paper void and bubble wrap, procurement decisions can be purely based on lowest bought in costs without consideration of the possible monitary impact when something goes wrong.
Research showed that when an e-commerce retailer reviewed their secondary packaging with a view to reducing dimensional weight charges, this left them vulnerable to increased costs and more importantly reputational damage too. During this process, it was discovered that when they experienced damage through these cost cutting measures, it cost the company more than £240 each time it happened. This included the cost to replace the product, customer service support time, warehouse time to process the return and pick the replacement product and then the costs associated with dispatching the new product itself (packaging supplies and postage).
Reputation, reputation, reputation
The costs we have examined are the tangible costs in putting things right for a customer. However, there is much more at stake, the damage to the company’s reputation. Research shows that a massive 73% of consumers who receive a damaged shipment are unlikely to order from the same retailer again. This in effect becomes a lost customer and not only that, with the ever growing strength in social media ‘reviews’, this also becomes a huge PR headache on damage limitation.
Suddenly the few pounds saved on initial outlay on materials seems to pale into insignificance.
Streamlining and making processes efficient in all aspects is a must, but making the right choices is also needed when getting the balance right between cost savings and happy customers.
At Acopia, we pride ourselves when it comes to working with our clients to provide help, support and advice in making the right decisions. For a free protection packaging consultation – call the team now on 0845 075 6111, we would be delighted to assist.