A large web-based wholesaler of high-quality audio components, identified an issue with their shipping process that was proving to be a major cost to their organization. Products were arriving damaged and they contacted BGR to help solve the problem that was impacting customer confidence and their bottom line.
There are numerous costs associated with damage in transit, such as replacing the unit, additional shipping charges to send the replacement item, and the additional packaging needed for the new shipment. However, the impact on a customer’s unboxing experience is arguably the most costly to an organization. In a recent study conducted by Package InSight, it was found that 73% of participants indicated that they would be unlikely to purchase from the company again after receiving a damaged item.
73% of e-commerce shoppers indicated that they would be unlikely to purchase from the company again after receiving a damaged item.
Packaging InSight, Breakthrough Research
BGR took a hard look at the customer's shipping process and product packaging supplies. We found that the root of the problem stemmed from the quilted air bubble void fill used for their protective packaging in long-distance shipments. Transit times vary dramatically for domestic and international shipping, and the economy grade bubble on demand that they were using for all packages is intended for only short duration shipments of 1-3 days. When used for long transit deliveries, the air bubble void fill would begin to deflate, increasing the space in the box and the potential for damage to the items. Additionally, the economy grade air bubble was not designed to support heavy items, and their products range in weight from small electronic components to heavy speaker systems. The economy grade air bubble protective packaging works well for protecting lightweight items sent short distances but fails to protect heavy products with 5-7 day shipping times.
After identifying the cause of damage, BGR proposed a paper void fill solution that would ensure their customers would not be met with damaged goods when opening their anticipated delivery. The solution was a 2-ply 50/50 Easypack® paper with a Paper on Demand machine from Pregis. This void fill paper packaging product was recommended for use in place of the quilted air bubble void for shipping expensive or heavy products, or if the transit time will exceed 4-5 days. The recommended void fill product maintains its protection levels during lengthy transit times, unlike quilted air bubble which was prone to deflation after an extended period of time. Additionally, this solution is engineered to support and protect items weighing over 50 lbs. The 2-ply paper product and Paper on Demand machine is a greater investment compared to the economy grade air bubble product, but will ultimately result in overall cost savings from reduced damage to their audio equipment and components while en route to their customers.
Following the implementation of the paper void fill and Paper on Demand solution, the customer saw an immediate impact. BGR’s protective packaging solution not only cut unnecessary shipping and packaging spend but also improved customer relations and retention by enhancing the unboxing experience for their customers. They now have minimal replacement orders stemming from transit damage, produce less packaging waste, and greatly reduced the costs associated with product damage during the shipping process.