BusinessRetail

The Cost Of Low Quality Packaging

By 01/03/2019 March 14th, 2019 No Comments

The cheaper, quicker option can end up costing your business more.

It’s a given fact that customers nowadays want everything ‘yesterday’. However, rushing to get the order over isn’t your best option. There needs to be a thought process behind every step from the payment through to the packaging. Poor packaging can be quite the irritant in the e-commerce world. With people continually submitting an order; products can get damaged during the rush.

Many businesses are guilty of choosing a cheaper and easier option when it comes to packaging and wrapping, and this is where many problems will start. In this blog, we will be pointing out the consequences of choosing cost-effective packaging about choosing reliable suppliers.

Eastpac has spent many years focusing on the fine details of packaging, ensuring they deliver only the best quality. We have put together this article as we want to help our customers and website visitors. Business owners need to understand the risks of investing in cheap packaging.

If you follow the idea of ‘saving money’ by reducing your expenditure on good packaging, then that’s one big mistake. As a B2C (business to consumer) company, you already have the cost of maintaining a customer service department. These employees will be dealing with the many angry customers on the phone and in emails which have complained that their product arrived damaged or missing because the packaging was inadequate.

During the transit process, there are a lot of factors that will contribute to the difficult process of shipping out a product. Packaging needs to be secure, suitable and long-lasting to ensure that it correctly protects your goods during transportation. Your customer has paid for an item; they deserve to receive it in the same quality you described online. However, if you choose the cheaper option, your buyer will most likely acquire their product and find that it has been affected by the performance of the poor packaging.

Damaged Box

Not only does packaging secure the product, but it also keeps it waterproof and free from dirt. Poor packaging can quite often be made of low-quality materials, resulting in porous packages or tears in the wrapping. The customer has spent their hard-earned money on your products, and they’ve trusted you as a retailer. Why now abuse their trust and damage your reputation? A happy customer is a loyal customer, and a loyal buyer will use you again or speak well of you to others.

It isn’t beneficial to be saving a few pounds on your packaging materials; instead, you should be thinking about the performance and reliability of the stock. Meanwhile, businesses who have chosen to continue with cheap packaging, will quite often find themselves receiving their products back because their customers have received them in a dissatisfactory condition.

You also need to think about the cost of return shipping labels, as the customer will request these if their product isn’t up to their standards. Then there’s the added inconvenience of offering some compensation to your customer to prevent them from bad-mouthing your business. Whether it’s a free item, a refund or discount code – either option will cost you.

However, one of the most weighty issues you can face, and one of the most important for that matter, is losing a lifelong customer. Customers are what keep your business afloat; without them, there would be no need for a retail sector. These people will be paying for your product, and for that, they deserve that their purchase is kept secure from the payment up until they receive it. Poor packaging is one of the key reasons why customers will file a complaint. Think about it; the packaging does more than advertise your brand; it keeps your goods in the best condition throughout the postal procedure.

Research shows that many unhappy customers will proceed to tell their friends, family and acquaintances about their bad experience with a business that failed them. Ok, so some scenarios we can’t help such as a lost parcel or dented box – but the quality of the packaging and the condition of the product is all on you.

Not to mention, customers can quite easily tell when you’ve cut corners with your packaging, for instance, if there’s too much or too little of the material. You’ve also had incidents where the packaging has been too tough to open without assistance; all of these situations are inconvenient for the user and pointless.

You can’t put a price on bad publicity, but by buying or creating poor packaging, you may as well do so. Good quality wrapping of your products will guarantee your reputation and your customer’s satisfaction. When you choose to open up a business in retail, you are already signing up for helping provide something to the general public. That’s why it’s your responsibility to ensure you have considered everything from the security of the purchase, through to reliability and sustainability of your packaging.

The sales process doesn’t end until the customer receives their order and is happy with it. You should be providing the best customer service from the start and even during the aftersales window. It’s essential that you do your research on the packaging you need and offer your customers exactly what they’re paying for.

You have worked hard to build your business and customer base. It would be a shame for you to lose sales and loyalty because you haven’t thought about your packaging.

It’s all well and good cutting costs by cutting down on the amount or quality of packaging that you use, but is it beneficial when your customers start coming back to you demanding refunds and serving bad reviews? If you haven’t already, I would carefully recommend looking over how your packaging process performs currently. Then, I would  make changes where necessary. If you did need any guidance or advice; however, Eastpac is willing to help get you in the right direction.