The hidden costs of inadequate tertiary packaging in ecommerce

However, whilst tertiary packaging may not ever be visible to the end consumer, its influence on the success of ecommerce operations cannot be overlooked.

In this article, we'll explore the hidden costs of inadequate tertiary packaging in ecommerce and why investing in proper tertiary packaging solutions is crucial for business success.

The importance of tertiary packaging in ecommerce

Tertiary packaging plays a pivotal role in streamlining logistics operations and ensuring the smooth movement of goods from manufacturers to retailers. It's responsible for maximising supply chain efficiency and protecting products during transit, storage, and distribution. While primary and secondary packaging focus on protecting individual items and marketing to consumers, tertiary packaging is designed to safeguard large quantities of products during transit.

In short, without a proper tertiary packaging solution, efficiencies in storage and handling fall drastically, boxes become more susceptible to damage, and the entire supply chain will experience significant disruptions.

Here's a closer look at the consequences of inadequate tertiary packaging:

1. Increased product damage and returns

One of the most significant hidden costs associated with inadequate tertiary packaging is product damage and returns. In the e-commerce sector, product damage translates directly into costly return processing, refund expenses, negative customer reviews, and potential loss of customer loyalty.

Statistics show that the average return rate in e-commerce ranges from 20 to 30%. On top of this, 34% of packaging-related returns are due to product damage.

And when a product is returned due to damage, the costs quickly add up. From additional transportation fees to customer service and labour costs to process returns. Then there’s the cost of storing returned items and even the environmental costs to think about.

The best way to limit these costly returns? A tertiary packaging solution that maximises protection.

2. Shipping inefficiencies

Poorly designed tertiary packaging leads to significant shipping inefficiencies. When packaging is not optimised, it can result in increased dimensional weight charges and inefficient use of truck and warehouse space. This translates into higher fuel consumption and additional transportation costs.

According to DHL, the average box is 40% too big for its contents. Meaning companies are not only paying to ship their products, but the air that’s inside it too.

An optimised tertiary packaging solution will limit void space, ensuring that products are tightly packaged, protected and secure. This means more efficient use of storage space, as well as reduced transportation costs.

3. Damage to brand reputation

While consumers may not directly interact with tertiary packaging, its inadequacies can indirectly affect their perception of a brand.

Delayed deliveries due to shipping inefficiencies, damaged products, or excessive packaging waste can all contribute to negative customer experiences and harm brand reputation. This damage, while not immediately visible in financial statements, can have long-lasting impacts on customer loyalty, repeat purchases, and overall business success.

By addressing tertiary packaging issues, ecommerce businesses can protect their brand reputation, foster customer loyalty, and ensure long-term success in a competitive market.

Ecommerce tertiary packaging solutions from Swiftpak

At Swiftpak, we supply a range of tertiary packaging products to suit your ecommerce business’ needs. From adhesive tape, to stretch wrap, corrugate and pallets, strapping, labelling, and so much more, we have you covered.

We understand you may need further assistance, so offer bespoke packaging solutions provided with over 45 years’ experience. Why not contact our expert team at Swiftpak today and find out how we can help your business with packaging.