With online shopping increasing exponentially in Australia and cost of returns increasing along with it, it is now more important than ever to get your packaging right and avoid returns due to damage.
Facts are that in 2017 Australians spent $21.3billion in online purchases and in 2018 we saw that increase to $28.6billion. In fact, as of January 2019, online shopping was responsible for 9% of Australia's total retail sales. And statistics portal for market data Statista predicts that Australian online businesses will see a 15.1% growth in revenue in 2019. Add to that the fact that 20% of online product returns are due to damaged items and that people are increasingly comfortable in returning goods- whether it be due to a change of mind or dissatisfaction with the product let alone damaged goods, it’s now more and more important we have packaging that efficiently handles these scenario’s.
What are the costs of replacing goods?
The cost of replacing an item (administrative and physical cost) can be as much as 17 x times the original cost? Depending on the size of your business, processing returns can mean:
- employing extra staff - some retailers are having to add dedicated facilities and teams just to handle returns.
- requiring additional warehouse space to store and process returns
- cost of re-sending a replacement
- environmental cost of all of the above - not to mention a whole new lot of packaging!
With this in mind, if you don’t get your packaging right the first time then you will likely lose money.
On-Line E-tailers & Packaging Choices
At Get Packed – we are not only a bricks and mortar seller but an online seller as well. We understand the challenges of shipping items in a costly manner whilst making sure they arrive at their destination and arrive intact. We have put together a list of things to consider when considering the challenges of getting your goods to arrive intact and on time.
Go to our Article – Best Packaging Choices & practices to Protect Your Products against damage and loss where we consider:
- Labelling and best practices
- Strapping and bundling - choices to suit your business
- Bubble and padding protection
- Paper and cardboard protection
- Rigid packaging which resists bending or folding
- Custom formed packaging - such as Instapak
Or contact us to discuss the best options for your business.