Shipping Damage Statistics: The Key Finding
- Shipping damage costs businesses about $1 billion a year in the U.S.
- 11% of goods arrive at distribution centers damaged.
- UPS has the highest percentage of damaged packages at 11%, followed by USPS at 10%, and FedEx at 7%.
- Shipping Damage Steals 0.5 Percent of Your Gross Sales.
- 21% of U.S. adults who have bought such a large item in the last year had it arrive damaged
- 34% of packaging-related returns are due to product damage
- Forty-one percent of consumers experience a negative impact with brand image when a shipment is lost, delayed or arrives damaged.
- 39% of online consumers will not repeat their purchase if they receive defective packaging
Source: (Lantech, Packaging Digest, Speed Commerce, Shipearly, Amcor.)
Shipping Damages Cost U.S. Businesses a Whopping $1 Billion Annually
Important takeaway:
| Shipping damages are a significant expense | This indicates the financial burden of shipping-related damages on businesses. |
| Need for improved logistics practices | The figure suggests that better handling and packaging could reduce costs. |
| Investment in damage reduction technologies | This loss highlights the potential for return on protective solutions. |
| Insurance and risk management are vital | The data underlines the importance of insurance in mitigating these costs. |
The $1 billion annual cost of shipping damage in the U.S. emphasizes the financial impact of such damages, indicating the need for improved logistics, potential for investment in damage reduction technologies, and the critical role of insurance and risk management.
Source: Lantech
11% of Goods Arrive Damaged at Distribution Centers: A Growing Concern
Important takeaway:
| Goods damage is a significant issue | The data indicates a substantial problem in the distribution process. |
| Improved logistics processes are required | This damage rate implies a need for better handling and packaging. |
| Potential for investment in protection solutions | The high damage rate shows potential for protective technologies. |
| Importance of quality control and insurance | It underscores the necessity for quality checks and insurance coverage. |
The fact that 11% of goods arrive damaged at distribution centers points to a significant issue in distribution processes, suggesting a need for improved logistics, potential for investments in protective solutions, and the importance of quality control and insurance coverage.
Source: Packaging Digest
UPS Leads in Damaged Packages at 11%, USPS and FedEx Follow
Important takeaway:
| Certain carriers have higher damage rates | The data identifies specific carriers with a higher rate of damaged packages. |
| Need for improved logistics at certain carriers | The percentages indicate specific carriers could benefit from better handling. |
| Customers may prefer carriers with lower rates | Given the differences, customers may choose carriers based on damage rates. |
| Carriers should invest in damage reduction | The figures underline the importance of protective measures in these companies. |
The specific damage rates at UPS, USPS, and FedEx suggest that certain carriers may require improved logistics practices, and that customers might prefer carriers with lower damage rates. These statistics underscore the importance of investment in damage reduction by the carriers.
Source: Speed Commerce
Shipping Damage Erodes 0.5% of Gross Sales: An Unseen Business Threat
Important takeaway:
| Shipping damage significantly impacts revenue | The data indicates a notable financial impact on gross sales. |
| Need for better shipping practices | This percentage suggests potential savings through improved logistics. |
| Investment in damage prevention is essential | Given the impact, return on preventive measures can be significant. |
| Importance of risk mitigation strategies | The figure highlights the role of risk management in protecting revenue. |
The claim that shipping damage accounts for 0.5% of gross sales underlines the significant financial impact, suggesting the need for improved shipping practices, investment in damage prevention, and the importance of risk mitigation strategies to protect revenues.
Source: Lantech
Damaged Deliveries Plague 21% of U.S. Adults Purchasing Large Items
Important takeaway:
| Damage of large items is a significant issue | This percentage indicates a notable problem in handling large items. |
| Better logistics for large items are required | Given the high rate, improved packaging and handling are necessary. |
| Investment in protective measures is needed | The damage rate points to a need for better protection of large items. |
| Enhanced customer service for damage control | The figure highlights the role of customer service in managing these issues. |
The statistic that 21% of U.S. adults had a large item arrive damaged in the last year suggests a significant issue in handling such items, calling for better logistics, investment in protective measures, and enhanced customer service for damage control.
Source: Shipearly
Product Damage Accounts for 34% of Packaging-Related Returns
Important takeaway:
| Product damage is a main reason for returns | The data identifies a significant cause for packaging-related returns. |
| Better packaging practices are necessary | The percentage suggests that improved packaging could reduce returns. |
| Investment in protective packaging is needed | The rate points to a need for better protection in product packaging. |
| Customer service needs to handle returns | The figure highlights the role of customer service in managing these issues. |
The statistic that 34% of packaging-related returns are due to product damage suggests a major reason for returns, indicating a need for better packaging practices, potential for investment in protective packaging, and the critical role of customer service in managing these returns.
Source: Amcor
Damaged Shipments Negatively Impact Brand Image for 41% of Consumers
Important takeaway:
| Shipping issues affect brand image | The data indicates the impact of shipping mishaps on brand perception. |
| Improved logistics are necessary | This percentage implies that better logistics could improve brand image. |
| Good customer service is critical | The data points to the need for excellent customer service to manage issues. |
| Businesses should invest in shipment tracking | This figure highlights the importance of reliable shipment tracking. |
The fact that 41% of consumers experience a negative impact with brand image when a shipment is lost, delayed, or arrives damaged indicates the need for improved logistics, excellent customer service, and investment in reliable shipment tracking to maintain brand perception.
Source: Amcor
39% of Online Consumers Shun Repeat Purchases Over Defective Packaging
Important takeaway:
| Packaging quality affects customer loyalty | The data signifies the impact of defective packaging on repeat purchases. |
| Enhanced packaging practices are required | This percentage suggests the need for better packaging to retain customers. |
| Quality control in packaging is critical | The data points to the importance of thorough checks on packaging quality. |
| Investment in premium packaging can pay off | This figure underlines potential returns from improved packaging quality. |
The statistic that 39% of online consumers will not repeat purchase if they receive defective packaging implies a significant impact on customer loyalty, necessitating enhanced packaging practices, stringent quality control, and potential investments in premium packaging to retain customers.
Source: Amcor
