When dealing with product returns, the phrase that every ecommerce business dreads to hear is “the item is broken.” Unfortunately, damages are one of the top order fulfillment challenges for online retailers. Product and packaging damage happens, and when it does, it negatively affects both your customer experience and your business’s bottom line. Not only is it a headache for ecommerce companies to send a replacement item, but unsellable inventory can accumulate to become a hefty financial burden.
The journey from manufacturer to a customer’s doorstep can sometimes be a long and arduous one, with many stops along the way. As the number of touchpoints increases, so do the chances of the product being damaged. For anyone with an ecommerce company, supply chain risk management is an ongoing and complex task.
Although avoiding any and all damages is virtually impossible, some companies find that choosing the right third-party logistics (3PL) provider to support their supply chain needs can help them significantly reduce the likelihood of damages to their products and packaging.
In this blog, we explore the most frequent causes of damaged goods and packaging from order fulfillment services, and how a 3PL can help you prevent these issues.
The 5 most common causes of damaged goods and packaging
- Poor packaging: If the product has not been packaged properly—there’s too much space in the package, not enough filling, or a lack of additional prep service for particularly fragile items, like glass or porcelain—products have a greater chance of breaking during travel. Packing is an essential component of supply chain risk management and should always be handled with care.
- Mishandling: During the order fulfillment process, packages are moved by fulfillment center associates, delivery drivers, multiple transportation legs, and sometimes even warehouse robotics. Occasionally, a package will drop, fall, or be mishandled during the warehouse handling and packaging process, causing damage to the package and its contents.
- Weather: If a product has to travel a far distance, it could encounter multiple temperature changes, causing moisture build-up within the package. In addition, inclement weather during the delivery process presents an increased risk of damage that order fulfillment services should be aware of.
- Improper storage: When storing inventory at warehouse handling and packaging centers, if pallets or shelves are overloaded, items are not stacked properly, or unsuitable packing materials and pallets are used, then products could get crushed.
- Shipping label damage: If the package’s shipping label is damaged and the customer information is not legible or the barcode can’t be scanned, the package will not be delivered to its destination.
How a 3PL can help with supply chain risk management
Partnering with a 3PL provider can help your ecommerce company overcome order fulfillment challenges—if you choose the right 3PL. If you want to ensure your products are delivered in perfect condition, it’s critical to select a 3PL that has extensive expertise in logistics (including all things picking, packing, and shipping) and a superb reputation for quality. Some services, like Multichannel Fulfillment (MCF), which has a 99.98% undamaged package delivery rate1, will work closely with you to make sure you maintain the highest levels of customer service and satisfaction. MCF is part of the fulfillment arm of Amazon Supply Chain Services (ASCS), an end-to-end logistics solution that offers businesses access to supply chain support that their business might need, from inbound transportation to storage to parcel shipping and more.
With the right parcel packing and delivery support, you can reduce damages by leveraging:
- Quality checks every step of the way: Working with a 3PL that is thorough and has quality measures and trainings already in place can help detect any damages to packages before they arrive at your customers’ doorsteps.
- Improved packaging: Your 3PL can provide packaging recommendations and best practices based on the product type so your orders arrive in perfect condition. For example, with ASCS, you can request prep services and special packaging for certain products by adopting MCF. If you find frequent damages with specific products, you can work with our team to discover what packaging works best to meet your needs by submitting a seller support case (login required).
- Closely monitored damage claims: Many 3PLs can track damage claims for you, or even check any customer feedback that mentions a damaged good, so you gain visibility into your customers’ experience and can identify any problem areas.
- Carrier capabilities: Many of the causes of damaged packages come down to the carrier used by the 3PL, and not the 3PL itself. Unless, of course, your 3PL is a carrier. Partnering with a 3PL that has carrier capabilities—like ASCS—is beneficial, as it can control the quality of delivery services and rapidly issue refunds and deliver replacements for any damaged goods.
- Optimized inventory management: Reducing the number of touchpoints and the distance your products have to travel can help with supply chain risk management, and a 3PL can help you streamline your order fulfillment services across your supply chain. For example, with MCF, your inventory is automatically distributed across the global ASCS fulfillment network, positioning it as close as possible to your customer, thereby minimizing shipping distances and times and reducing the risk that damages could occur during fulfillment.
If your packages do get damaged, it’s important to have a partner that you can get in touch with easily so they can help handle the issue effectively. To learn more about MCF’s damage policy, go here.
1Based on all orders fulfilled by MCF in the United States from January 2023 through March 2024
Supply chain risk management made simple
Damage to packages—which is typically caused by improper packaging, mishandling, or other factors like weather—is an ongoing concern for ecommerce companies. Fortunately, working with a 3PL like ASCS and its fulfillment services like MCF, can unlock benefits that improve damage rates, such as optimized inventory management, enhanced packaging, and better quality control from carrier capabilities. By finding the right partner, you can generate and execute a plan to reduce your damage rate, improve your warehouse handling and packaging procedures, and enhance the customer experience.
