The Real Cost of Bad Packaging and How to Avoid It?

Packaging is often the very first interaction a customer has with your brand. It decides whether they pick it up, purchase it, recommend it, or never give it a second glance.

Despite its importance, packaging is one of those things that brands commit costly mistakes because of it. This clearly shows that the real cost of bad packaging is not only linked to sales, ROI, or profits; it also damages brand reputation simultaneously.

So now what? You should avoid it. But how? Do not skip out on reading this blog post.

What Actually is the Real Cost of Bad Packaging?

Bad packaging affects the brand in multiple ways. It shrinks sales, damages brand reputation, causes product damages, and loses customer trust.

With all these things, how could any brand achieve the milestone of higher sales, a good brand reputation, and enhanced customer satisfaction? Definitely, it’s impossible. Here are the 6 real costs that brands face due to bad packaging.

1. Product Damages

Damaged products don’t just cost you money-they cost you customer trust. For example, someone trusts your brand for the first time, and that trust turns out into a nightmare when they receive a damaged product. Result? You lose a customer for the whole life.

Poorly designed packaging leads to:

• Loss in sales and brand reputation
• Returns/ replacements
• Return processing costs

You can’t imagine how these issues would easily destroy your brand. If this issue is not addressed on time, you might lose everything.

How to Avoid?

Design such a packaging that not only carries the product but also protects it.

2. Inefficient Handling Slows Down Process

Packaging that is bulky, awkward, or requires special tools to handle is a silent killer for productivity. Heavyweight packaging slows down supply chain coordination, loading/ unloading times, and manual handling safety. You are essentially paying for packaging that is completely a waste & useless.

How to Avoid?

Manufacture packaging that doesn’t let you waste your time, money & effort.

3. Storage Space Costs More

If your packaging is oversized or useless, it eats up warehouse space, which is expensive. Oddly shaped or poorly stacked boxes lead to increased storage costs, safety hazards, and a cluttered workflow.

In industries where warehouse space is a big issue, poor packaging is money down the drain. Use your warehouse storage capacity to the maximum by storing boxes that are really beneficial for your brand.

How to Avoid?

Reduce warehouse storage capacity by up to 70% by nesting, folding, and stacking efficiently.

4. Reputational Cost

Any business’s reputation is linked with its performance, customer trust, and financial condition. Lack of reliability and any damage is not tolerated because customers nowadays are more concerned about their purchase.

According to stats, almost 41% of customers experience a negative impact on brand image when they receive delayed, lost, or damaged shipments. All of a sudden, this thing damages the brand reputation in the long run.

How to Avoid?

Manufacture packaging by considering your target audience’s preferences in mind. Make them happy by delivering a fine product without any damage.

5. Shipping Costs Multiply with Excessive Weight

Heavy packaging increases your shipping costs because it covers more space. Every kg counts, especially when you are shipping products internationally.  Shipping cost also increases when you add unnecessary add-ons inside the packaging.

When product packaging is of excessive weight, which is completely useless, you pay for unnecessary costs that might disturb your brand’s ROI. So, keep this thing in your mind before designing brand packaging.

How to Avoid?

Measure the size of your product correctly and then go for the box that best fits that product. Doing so will help you avoid paying higher for unnecessary shipping costs.

In a Nutshell!

The real cost of bad packaging affects brand growth by decreasing sales, losing customers’ trust, and impacting brand reputation. In addition, poor packaging pushes your brand back from competition, and gradually, your brand loses its value.

You don’t need to indulge in tedious tasks that don’t belong to you. At YBY Boxes Australia, from correct measurements to the right packaging designs, we will help you design your brand packaging that won’t cost your brand sales & reputation.

Share your packaging requirements with us.