As retailers prepare for record Black Friday sales in the UK, new research reveals that damaged deliveries are quietly chipping away at customer confidence and retailer profits, with millions lost to avoidable returns, rising costs and reputational harm.
The study, commissioned by DS Smith, an International Paper company, finds that while 54% of UK shoppers plan to take part in Black Friday sales, almost one in four (23%) – equivalent to more than 12 million people – received a damaged item in the past year.
Among those, over half (51%) said they would be less likely to order from that retailer again, while 49% would think negatively of the company, even though more than 4 in 5 (81%) understands that damaged deliveries are out of the retailer’s control.
Meanwhile, more than four in five (81%) retailers recognise damaged deliveries as a problem for their customers, with a third (32%) reporting a negative impact on their brand reputation and 30% saying that damaged deliveries have led to customers not coming back.
This corresponds to the views of retailers: nearly half (47%) of retailers agree that stronger materials are needed to reduce damage, while over a third support enhanced impact resistance (36%) and better structural design (34%).
To address the challenge, DS Smith has pioneered an industry leading testing process for e-commerce packaging called DISCS (Drop, Impact, Shake, Crush, Shock). Comprising five pieces of equipment, the process replicates the stresses and strains of the E-commerce supply chain to effectively provide reliable, real-world testing.
Ashwin Moorthy, Head of Design & Innovation, DS Smith, says, “The key to solving this challenge is great design, rigorous testing and constant innovation. We work with some of the biggest brands in the world, and we know how harmful damages can be for both customers and retailers. Using our unique robotics-based testing, we recreate the journey of parcels from the warehouse to your house, so we can put packaging through its paces and then do everything we can to help protect what’s inside. Our research and development teams have found that, through clever design, there are ways to not only limit damage but use less material, while ensuring the packaging remains readily recyclable and that the materials are kept in use for as long as possible.”
The research also highlights the financial toll for consumers and retailers. Consumers estimate the average value of a damaged item to be £82.30, meaning the total damages bill surpasses £2.5 bn – up from £2.3 bn last year.
For retailers, a third (32%) say rising return rates have pushed up operational costs over the last year. On average, British retailers report spending an average of £7,646 a month dealing with parcels that have been damaged .
