What Are The True Costs of Damaged Products?

If you are one of the many millions of customers who order products online to your home or business, you might have received a product that was damaged in the mail. When this happens, you will no doubt be disappointed with your product and the lack of care both your buyer and courier gave to your purchase.

Damaged products are more than just a disappointment for the buyer, they can actually spark a tidal wave of consequences on the seller. And some of these consequences can be quite serious if the damage occurs at a wider scale, affecting everything from a company’s reputation to the supply chain it depends on.

In this blog post, we’ll explore some of the true costs of damaged products and how companies can prevent them. Read on to learn more!

Increased Prices

One of the effects of having damaged products is an increase in prices.

This is because when products become damaged, it means they cannot be sold at full price to buyers.

This incident is most likely to happen to wholesalers, who may receive damaged or lower-quality goods from a manufacturer and must then find a way to salvage a shipment. They may choose to discount some products through sales or attempt to refurbish the products so they are in functional condition, despite showing aesthetic damage.

While these remedies are successful in the short term, the financial loss from damaged goods means a seller must try to obtain revenue from elsewhere if they want to remain profitable.

The result? Increased prices on goods in their inventory.

These increased prices are passed on to buyers who may find it a tough pill to swallow, especially if a competitor is offering a similar product at a cheaper price. Likewise, a wholesaler may choose to select a different supplier, ending their contracts with the company that provided damaged or faulty goods.

Can Tarnish The Company’s Reputation

Damaged products can also harm a company’s reputation. If a customer receives damaged goods after purchasing them, they may lose trust in the buyer and part ways with them by selecting a competitor and letting other potential customers know about their buying experience.

In some cases, the consequences of damaged goods can snowball without the buyer knowing. While accidents can and do happen, businesses should never become complacent with quality control, especially if they rely on a third-party courier to deliver their products.

One piece of negative feedback might be completely isolated and may be salvageable through refunds or a compensatory gift. But what if there are many other buyers who have not openly informed sellers that their item was faulty on arrival? Some customers may choose to react by going to a competitor rather than going through the effort to complain, leaving the original seller oblivious to the damage being done.

Customer loyalty and trust is difficult to gain, and even trickier to regain after a bad buying experience. This is especially damaging if a company does not have a back-up system in place to adequately handle damaged goods and disappointed customers, like a quality customer support team and an agile supply chain.

Are you looking to make your packaging supply chain more agile and resilient? One option you could consider is on-demand packaging, an innovative way to get the packaging you need when you need it. Learn more about on-demand packaging here!

Can Lead to Legal Issues

In some more serious cases, damaged products can prompt costly and complex legal issues.

For example, if a consumer is injured by a faulty or damaged product they purchased from a company, they may be able to file a lawsuit against that company. This is most common in situations of electrical products being damaged during manufacturing or during transit and causing damage like burns, shocks or fires.

Lawsuits from damaged products can be expensive and time-consuming for any company to defend against, especially among small or new businesses. Even if the company is ultimately found not to be at fault, the legal process can still be draining and leave a stain on a company’s reputation.

Decrease in Sales

Finally, damaged products can lead to a decrease in sales. Customers may be less likely to purchase from a company if they’ve had negative experiences with damaged products in the past. This can hurt a company’s bottom line and make it difficult for them to grow and thrive.

In order to maintain and increase sales, it is important for companies to focus on building a strong reputation and consistently provide high-quality products that customers can rely on.

How to Prevent Damaged Products

So how can companies prevent damaged products? One important step is to invest in high-quality packaging.

This can help protect products during shipping and handling. It is also important to regularly inspect products and packaging to catch any potential issues before they lead to damage. In some cases, it may be necessary to invest in additional packaging or shipping materials (like void fill) to ensure that products arrive at their destination in one piece.

There are also a few other strategies that companies can use to prevent damaged products. These include:

Use Appropriate Packaging for the Product

Different products require different types of packaging, and choosing the one that is optimized to protect your product and its needs is paramount. For example, a fragile product like glass or ceramics will need more protective packaging than an item of clothing. By using the right packaging materials for each product, companies can better ensure that the products arrive at their destination in good condition.

Properly Label and Handle Packages

Proper labeling and handling of packages can also help prevent damage and keep it from being stuck in transit, where it is more likely to be damaged. This includes making sure your packages have the correct shipping labels and are handled with care during the shipping process. It is also a good idea to use tracking numbers so that packages can be easily located if there are any issues.

Remember, the longer your package spends in transit, the more likely it is to be damaged.

Partner with Reliable Shipping Companies

Finally, businesses can prevent damaged products by partnering with reliable shipping companies. This includes choosing couriers with a good track record for handling packages carefully and delivering them on time. It may be a sensible idea to choose a courier that provides insurance, so that if a package is damaged or lost, the company can be compensated for the loss.

Order Quality Packaging Products from Crownhill Packaging

At Crownhill Packaging, we recognize the significant importance of preventing products from being damaged during shipping. That is why we thoroughly research and source the right materials for the unique needs of our clients’ products. Providing everything from bubble wrap and cardboard boxes to environmentally-responsible packaging and next-generation packaging systems, we have options to fit your needs and budget.

Get in touch with our team today to learn how we can help turn your packaging into a valuable packaging asset both you and your customers will appreciate!