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Tag: e-commerce

Meeting The Demands Of Fast And Free Shipping In E-Commerce

Posted on by Will Priestman

Fast and free shipping has become a cornerstone of success in e-commerce with 75% of consumers prioritizing it when making purchasing decisions. Offering this service presents significant challenges, however, from rising operational costs to balancing customer expectations with profitability.

In this article, we explore these hurdles and the strategies businesses can employ to meet growing demand for fast, free shipping while maintaining operational efficiency.

The Psychology of Free Shipping

Free shipping has a powerful impact on consumer behavior. In fact, roughly half (48%) of consumers abandon their shopping carts at checkout when faced with unexpected shipping fees. The word “free” creates an immediate sense of value, reducing friction in the buying process and increasing the likelihood of purchase.

The “Amazon effect” has further solidified this expectation.

Amazon’s model of offering free shipping as part of its Prime membership has raised consumer standards. Today, customers anticipate free shipping from all online retailers, pressuring smaller businesses to meet this demand without sacrificing profitability.

The Challenges of Offering Free Shipping

You understand the importance of free shipping — most retailers do. But offering it comes with substantial challenges that make it far from automatic:

• Rising operational costs, especially due to inflation, are a major obstacle. Fuel prices, labor shortages and packaging costs continue to climb, pushing profit margins to the brink.

• Balancing profitability with customer satisfaction is tricky. While consumers expect free shipping, offering it can eat into profits, forcing businesses to raise prices or set minimum order thresholds.

Smaller retailers also struggle with the logistical challenges of meeting fast shipping expectations. Without the resources of larger e-commerce giants, staying competitive becomes much more difficult.

Strategies for Implementing Free Shipping

Retailers can adopt several strategies to offer free shipping without sacrificing profitability. Here are several proven approaches:

• Threshold-based free shipping: Encourage customers to spend more by setting a minimum order value to qualify for free shipping. This boosts average order values, helping offset shipping costs.

• Membership and subscription models: Offer free shipping as part of a subscription service, such as Amazon Prime. This generates recurring revenue and strengthens customer loyalty.

• Optimizing shipping and fulfillment: Use efficient packaging to reduce dimensions and lower shipping costs. Implementing a conveyor sorting system helps streamline operations. Zone skipping can also consolidate shipments, reducing the shipping distance and cost. Negotiating better rates with carriers based on shipping volume is another effective way to cut expenses.

• Leveraging data analytics: Use customer data to optimize free shipping strategies. Analyze purchase patterns, average order values and shipping costs to tailor threshold-based free shipping offers. For instance, if data shows customers often abandon carts just below a certain price point, adjust your free shipping threshold accordingly.

• Setting expectations: Transparency is key, with 74% of consumers expecting to see shipping costs before purchasing. Additionally, educating customers on delivery times and potential delays helps manage expectations and maintain customer satisfaction.

• Offer in-store pickup: Provide buy online, pick up in-store (BOPIS) options. This eliminates shipping costs for local customers while driving foot traffic to physical stores. It’s a win-win strategy that can help offset the costs associated with free shipping for other orders.

By combining these strategies, businesses can offer free shipping in a way that meets consumer demands while protecting their bottom line.

Conclusion

As inflation and rising operational costs continue to challenge e-commerce, businesses must find creative ways to maintain free delivery without compromising profitability. Meeting consumer demands for fast and free shipping will remain essential, and companies that can balance cost control with customer satisfaction will thrive.

Adapting to these pressures and keeping a close eye on shifting trends in consumer behavior will be critical to staying competitive in the ever-evolving e-commerce landscape.

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Fulfilment Service gets Robots to Boost Warehouse Efficiency

Achieving Peak Season Success

Posted on by David Priestman

Navigating Peak Season with Advanced Conveyor Solutions

Peak season is a critical time for the logistics industry, marked by surging demand driven by holiday shopping, back-to-school purchases, and seasonal inventory shifts. The resulting pressure on supply chain operations often leads to challenges like higher freight rates, limited transportation options, and logistical bottlenecks. During this period, every link in the logistics chain—from order picking to shipping—faces increased strain, making operational efficiency more crucial than ever.

In this context, Ammeraal Beltech has emphasized the role of advanced conveyor solutions in navigating these peak season challenges. With a range of high-performance belts and systems, they aim to help logistics facilities maintain seamless operations despite heightened demand. Florian Kley, ISM Airport & Logistics at Ammeraal Beltech, highlights the industry’s challenges: “During peak season, the logistics industry faces unprecedented challenges in meeting demand and ensuring smooth operations. We are committed to supporting businesses with our advanced belting solutions, ensuring they can navigate these complexities with efficiency and reliability.”

Maximizing E-commerce Success During Peak Seasons

This perspective aligns with the broader industry’s recognition of reliable conveyor systems as critical tools in managing peak season pressures. Efficient material handling, particularly in warehouses and distribution centers, is key to maintaining throughput and meeting delivery timelines. Kley underscores that accurate and swift order fulfillment is vital for performance, especially during peak periods: “Today, accurate and quick order picking and distribution are key to successful business performance. Maintaining your operations to optimal standards means creating the most reliable system possible, and for that, you need the best partner you can find.”

Conveyor Solutions

Ammeraal Beltech’s approach reflects an industry-wide shift towards flexible and resilient solutions that can adapt to varying demands. Their product portfolio covers a wide range of needs, from tangentially driven roller conveyors to specialized solutions for e-commerce applications like automated storage, retrieval, and robotic picking systems. These innovations are designed not only for efficiency but also for energy savings and reduced maintenance, which are increasingly important considerations in the logistics sector.

As e-commerce continues to evolve rapidly, the need for sustainable, fast, and accurate order fulfillment grows. Kley notes, “We understand that e-commerce is a constantly evolving industry, which is why we’re committed to keeping up with the latest trends and challenges to provide our customers with the most innovative and efficient conveying solutions.” This commitment to staying ahead of industry trends and tailoring solutions to specific needs is crucial for logistics operators striving for peak performance during high-demand seasons.

The broader industry takeaway is clear: as peak seasons become more intense, investing in advanced conveyor solutions is essential to maintaining both efficiency and reliability in logistics operations.

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E-fulfilment Automation Attracts Repeat Customers

Posted on by David Priestman

What brings you back to your favourite online retailer? Other than product quality and range, it’s probably how quickly and competently they deliver your order. Consequently, the efficiency of e-fulfilment warehouses is critical for sales, as service level is a defining factor for customer retention. Automation solutions from experts such as Prime Vision provide warehouses with the tools and data that increase the accuracy and speed of order fulfilment, leading to enhanced customer satisfaction and repeat orders in the future.

Order, receive, repeat

An intuitive, attractive e-commerce platform with a good range of products is highly effective at catching potential customers’ attention. However, beyond initial exposure, holding onto them relies not only on the product meeting expectation but also on the service that follows the payment. A long delivery time, or a late arrival, will often push a consumer to another retailer that can do it faster. Shipping the wrong item means an unhappy shopper too, along with a costly return. All result in lost revenue and potentially, damaged reputation.

Customer retention is essential for the long-term viability of any business and is dependent on fostering loyalty and trust. It’s no secret that attracting a new customer is usually more expensive than retaining an existing one. Performing poorly at the dispatch and delivery stage will most likely result in a one-off order. Customer lifetime value (CLV) to the retailer would be equal to that single purchase and, considering customer acquisition costs linked to marketing and sales, the return on investment (ROI) could be disappointing – especially if that one order is returned.
Repeat customers are more lucrative, so retaining them is a top priority, and e-fulfilment operations must function effectively to keep consumers coming back.

Meeting service expectations with automation

Today, an efficient fulfilment operation is an automated one, and there is a wide range of smart automation solutions available that can raise service level and ensure customer orders are more than a one-time deal.

For example, automatic storage and retrieval systems paired with Prime Vision mobile autonomous robots (AMRs) and computer vision systems allow items to move faster through the warehouse. As a result, parcels containing orders are sorted quicker, reducing overall delivery times and the risk of a customer choosing another retailer with a shorter lead time.

This is achieved while improving accuracy. Inventory management systems, analytics software and computer vision provide full traceability across the warehouse. Operators can therefore usually identify errors before an item is dispatched, minimising returns and boosting customer satisfaction. Additionally, bottlenecks in warehouse sorting processes can be identified and resolved, further promoting efficiency.

Automation in peak demand

Automated operations are exceptionally proficient at catering for periods of high demand too – like Black Friday or Cyber Monday. An overwhelmed logistics operation results in delayed deliveries that can scare shoppers away. On the other hand, offering a consistent service level during these peak times is highly profitable. The latter is no easy task with current labour shortages in the sector. Thankfully software, robots and computer vision systems are very scalable. This means businesses can achieve higher warehouse throughput with limited resources, ensuring that existing staff aren’t overworked during peak periods.

Solutions such as Prime Vision’s Flow Projectors remove mind-numbing, time intensive tasks such as label reading, instead projecting a number that corresponds to a destination or chute on each parcel. Therefore, workers find sorting faster and easier. With these twin benefits, automation enables high demand to be met sustainably, protecting the existing workforce and safeguarding customer loyalty.

Data and discerning buyer behaviour

Gathering sales, warehouse stock inventory and other customer relationship management (CRM) data also empowers businesses to enact a feed-forward approach that can predict and influence customer behaviour. Working out buying habits means e-commerce platforms can use cross-selling or ‘frequently bought together’ features, encouraging shoppers to order more. For consumable products that are purchased repeatedly, the platform can suggest setting up a subscription.

On the fulfilment side, access to historical warehouse CRM data also allows buyer behaviours to be identified, so businesses can tailor their inventory management to capitalise. Bespoke analytics software backed by expert consultation focusing on particular areas of the fulfilment process are solutions Prime Vision has offered to its customers for leaner warehouse management.

Such an approach allows warehouses to optimise inventory volumes and individual product locations by actioning findings on what sells when and where, like surfboards in summer or by the coast. Businesses can then ensure availability for seasonally popular products and reduce delivery times by holding them locally. Often-paired items can even be stored in close proximity within the fulfilment facility itself. Once the data is gathered and analysed, the results can be a true eye-opener and, by addressing even a minor issue, a smoother, more efficient operation and time-saving practices can be established.

Get e-fulfilment right first time

In the experience of Prime Vision, automating e-commerce logistics can positively impact sales. The ability of automation to improve the efficiency of every aspect of a warehouse operation means faster delivery and reduced errors, enhancing customer service and fostering loyalty. Scalability ensures that this service level stays consistent even during peak times, protecting staff from burnout and maximising profitability at key moments. Using data to analyse and predict buyer behaviour can be used to enhance fulfilment operations, translating into high value, repeat purchases thanks to order accuracy and the speedy service received by customers.

Beumer Expands UK Customer Base

Posted on by Keith McKinley

Codept, the logistics integration specialist backed by Beumer Group, has signed a new UK customer, Kammac Limited. Kammac is one of the UK’s fastest growing fulfilment businesses, with 10 fulfilment sites already, with plans to expand to twice that number. Kammac will be using Codept’s platform to help its B2B and new D2C e-commerce customers onboard faster and to deliver a robust and scalable integration solution that the market demands.

“Kammac is an excellent addition to our stable of UK based 3PLs“, says Felix Ostwald, co-founder of Codept. “Its expertise and experience are clear through its rapid growth, and the investment to support its growth in the burgeoning D2C market underscores its commitment to this market.”

Codept brings businesses together, giving both retailers and logistics partners immediate access to real-time information. Through its scalable integration platform, the logistics start-up seamlessly connects online retailers with logistics service providers. 3PLs quickly onboard new merchants in no time and streamline operations – it only takes a single connection. With one easy-to-use interface, Codept reduces the IT effort for merchants’ onboarding by up to 80 per cent. 3PLs can start shipping knowing their contracts will be upheld, and e-tailers can carry on selling knowing their orders will get fulfilled. “With this single connection, we can streamline our customers’ integration processes. Costs and lead times can be optimised”, Codept’s other co-founder Jonas Grunwald explains. “Our platform closes the gap between ERP, warehouse management and shop systems, creating frictionless processes.”

Using the Codept platform Kammac can speed up merchant onboarding by more than half and reduce IT costs by up to 80 per cent. The fulfilment process is also significantly streamlined. Ged Carabini, COO of Kammac, states: “We are growing so rapidly in the Direct-to-Consumer arena, and Codept provides an ideal technology platform to support this growth.”

Codept, founded in 2019 by Felix Ostwald and Jonas Grunwald, was supported from the outset by Berlin-based Beam GmbH – the company builder, which is a spin-off of the Beumer Group. The logistics start-up is also developing from a platform provider to a technology partner for e-commerce companies, logistics companies, shop and ERP systems as well as warehouse management systems.

Kite Expands Enviro-box Range

Posted on by David Priestman

Kite Packaging, a leading UK online supplier of packaging, has expanded its best-selling range of enviro-boxes to include five new sizes following growing demand.

Kite’s enviro-boxes are a premium single-wall box with a heavy-duty flute which combine superior strength and durability with efficient material design. The end result is robust and reliable whilst being cheap enough to be affordable.

These boxes are an eco-friendly alternative to larger double-wall boxes thanks to their manufacturing process which expends 30% less CO₂ emissions by comparison. They also contain between 60-90% recycled content and are made from lighter materials. This means more units can be fitted onto a pallet, leading to lower shipping costs and a reduced carbon footprint.

Enviro-box

Available in an array of sizes, Kite says these boxes are ideal for businesses with a large product file thanks to being versatile in what they can package. Some sizes come multi-scored and can be adjusted to better suit the dimensions of the goods packaged within, helping to keep postage costs to a minimum.

They are supplied flat-packed for easy storage and can be purchased from Kite Packaging at market-beating prices with further discounts available when buying wholesale quantities. The company is carbon neutral certified and has good reviews from its customers.

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REPORT: Rise of E-commerce and Returns Culture

Posted on by Keith McKinley

Körber’s 2023 State of Shipping and Returns Survey reveals that 70% of e-commerce consumers have experienced a delayed online order in the last six months, affecting their overall view of the brand.

Consumer behaviour, preferences and expectations continue to challenge manufacturers, retailers and 3PLs alike. Körber’s 2023 State of Shipping and Returns survey finds that 90% of respondents are less likely to buy from a brand again after a poor online shopping experience, while 29% say they are increasingly willing to share a negative review online. These are among the central findings from online shoppers in 2023.

The recent survey gathered insights from 2,200 consumers across eight global regions on their post-purchase experience between the moment they click the “buy” button and when the product reaches their doorstep. A significant number of consumers (70%) experienced shipping delays without any reason provided for the delay (35%). With consumers looking for speed and convenience as the deciding factors when they purchase online, these delays drive customer dissatisfaction and affect brand decisions.

“Customer expectations have only grown more complicated post-COVID,” explained Chad Collins, CEO Software at Körber Business Area Supply Chain. “Körber’s latest research reveals that a good shopping experience can make a loyal customer for life. On the contrary, a poor experience can leave a wake of destruction. The importance of a frictionless customer experience cannot be emphasised enough. Brands need seamlessly integrated technologies to overcome these challenges and ensure that consumer expectations are met.”

One area of opportunity for businesses is enhancing shipping visibility and accountability to help avoid unexpected delays. And when delays invariably occur, have a plan in place for customer communication to update expectations and provide potential appeasement to create customer loyalty. 38% of consumers were not offered any compensation, refund or discounts on their recent delayed order, yet 83% indicated that is important to them.

Körber’s 2023 State of Shipping and Returns Survey looked at changing consumer expectations and what drives customer satisfaction. In February 2023, Körber polled 2,200 consumers across the US, Canada, Brazil, Mexico, Australia, Germany, France and the UK.

CLICK HERE to access the full report.

 

Hugo Beck Showcases Ecommerce Packaging

Posted on by Keith McKinley

One of the world’s leading specialists of horizontal packaging solutions, Hugo Beck, is exhibiting its latest range of film and paper packaging machines for e-commerce, mail order and logistics at the LogiMAT show, held at the Stuttgart Trade Fair Centre on 25th – 27th April 2023.

Hugo Beck will use Europe’s biggest intralogistics exhibition to demonstrate three machines from its e-commerce range, highlighting the company’s ability to meet sector-specific demands for both sustainable film and paper packaging.

Visitors to Booth 4G61 in Hall 4 will see the Hugo Beck paper e-com fit on display, tailored specifically for e-commerce and mail order applications using a minimum of paper to package goods. The machine is suitable for the direct dispatch of individual goods, packing groups of products, or meeting the complex requirements of returned goods packaging. With the paper e-com fit, the shipping bag size is automatically adapted to the varying product dimensions in length and width during production, meaning different product sizes can be packaged in a jumble. Both uncoated and coated recyclable papers can be used for producing precisely fitting paper bags with two sewn sides plus a top overlap.

Timo Kollmann, Managing Director at Hugo Beck, said: “LogiMAT is the perfect show for us to demonstrate how Hugo Beck’s technology has evolved to meet the needs of today’s logistics and e-commerce sector. With the sudden rise in demand for paper-based packaging, the paper e-com fit highlights our ability to innovate and stay ahead, offering solutions that can process alternative materials.”

The second machine on the Hugo Beck stand provides the ideal solution for applications where film is required or preferred. The servo X e-com fit machine ensures products are packed with the lowest amount of material needed, automatically adjusting the film bags with four sealed sides to the product’s length and width.

“After a particularly successful year for the Hugo Beck servo X e-com fit, we’re excited to be taking it on the road, showcasing to visitors how we are meeting the shift in demand for sustainable film packaging. The servo X e-com machine range is capable of processing a wide range of recyclable material types, from PE flat films from 30 to 100 μm thickness, through to recycled content films which can often contain for example up to 80 per cent and more PCR material,” said Kollmann.

Moreover, the LogiMAT show will lead the way as Hugo Beck debuts its brand new flexo paper packaging solution for the first time this year. As a hybrid variant of the company’s flexo machine series for paper and film, attendees will be the first to see the new machine for paper packaging in public – witnessing exclusive demonstrations of its capabilities. Championing the company’s commitment to develop innovative, flexible solutions, the new solution is industry diverse, from e-commerce and logistics through to many others.

Members of the Hugo Beck sales team will be available to discuss customer-specific requirements, including its diverse automation solutions. Offering support through the entire automation process, project planning and manufacture right through to integration into existing packaging lines, LogiMAT visitors can find out more about Hugo Beck’s robots and handling systems such as automatic feeding, portals, grouping solutions, stacking and counting devices and cross pushers.

 

Which Countries Have Highest E-commerce Levels?

Posted on by Keith McKinley

It’s no secret that e-commerce has grown rapidly in recent years, helped along by global events, such as the Covid-19 pandemic which encouraged more consumers to shop online versus in physical stores.

With access to the internet being easier than ever before, the established global e-commerce network Ubuy wanted to know which are the ‘shopaholic’ countries – those which had seen the highest volume of online purchases.

In a new report analysing worldwide spending data, Ubuy compared the amount spent per country in relation to each country’s average annual income and population. Those that had spent the most money in relation to their annual income were deemed the most ‘shopaholics’.

Ubuy’s research found that, globally, around $3,913,058.90 is recorded in e-commerce spending annually. Using the most recent world population figures (7,888,408,686 people), Ubuy calculated that this is equivalent to $496 spent per capita – approximately 5.7% of an average income ($8,742) on e-commerce alone.

In first place was Lebanon, recording an annual e-commerce revenue of $3,269. While this may not seem like a large number, this is equal to $585 per capita with a population of 5,592,631 people. The average household income for Lebanese people is $$4,323 per year, making the amount spent on e-commerce equate to around 13.5% – a significant amount.

In contrast, China recorded a massive $1,240,968 per year in e-commerce revenue. This was equivalent to $879 per capita for China’s population of 1,412,360,000 people. In terms of household income, the average income was around $7,572 per year, with e-commerce spending equating to 11.6% of their income annually.

The research found that, overall, the majority of countries had recorded relatively large volumes of e-commerce revenue – a testament to how much e-commerce has grown in recent years.

Commenting on the research, Faizan Khan at Ubuy said: “Our research revealed which countries have recorded the highest proportional volume of e-commerce revenue annually, in relation to the average household income for each country.

“It’s interesting to see that many countries actually spend more of their annual income on e-commerce than the global average, highlighting how prominent this spending platform is in many people’s lives.

“As a well-established e-commerce platform ourselves, we’ve seen first-hand that online spending has grown massively in popularity in recent years, particularly following the pandemic. However, it was interesting to break down the global data and see just how these spending trends have emerged in different countries.

“Most notably, our research also revealed that many of the countries that had the highest volume of ‘shopaholics’ were located in South Asia and the MENA region.”

Broken down by country, the top 10 ‘shopaholic’ countries were:

  • Lebanon – $3,269 per year, 13.5% of average income
  • China – $1,240,968 per year, 11.6% of average income
  • Iran – $15.878 per year, 10.3% of average income
  • Kyrgyzstan – $531 per year, 9.1% of average income
  • South Korea – $109,842 per year, 8.4% of average income
  • Sudan – $1,406 per year, 8% of average income
  • Moldova – $842 per year, 7.9% of average income
  • Mongolia – $761 per year, 7.5% of average income
  • United Kingdom – $176,444 per year, 7.2% of average income
  • Bhutan – $137 per year, 7.1% of average income

CLICK HERE to access the full research.

Photoneo Brightpick Raises Funds

Posted on by David Priestman

Photoneo Brightpick Group, the parent company of Photoneo, a leading provider of robotic vision sensors and intelligence software, and Brightpick, a leading provider of warehouse automation solutions for ecommerce and grocery order fulfilment, has announced it has raised an additional $19 million to complete a $40 million Series B. Taiwania Capital led this most recent round, which also included follow-on investments by prior Series B lead investors IPM Group and Alpha Intelligence Capital. Additional investors in this round include H&D Asset Management, Venture to Future Fund and Kolowrat Group. This round brings the company’s total capital raised since inception to $53 million.

Photoneo Brightpick Group has more than 300 employees and is used in over 5000 technology installations across the US, Europe and Asia. Its customers include leading companies such as General Motors, Volkswagen and KUKA. Currently, the US accounts for approximately 25% of Photoneo Brightpick Group’s revenue. The new funding will be used primarily to fund new installations of Brightpick’s warehouse automation solution in the US.

Brightpick has been actively rolling out its warehouse automation solution in Europe, including with Rohlik Group, one of Europe’s largest online grocers, with over 10 million orders per year and one million customers. Rohlik recently implemented the Brightpick solution to automate order fulfilment and dispatch in its Prague fulfilment centre.

The Brightpick solution takes a month to deploy, enables warehouses to reduce their picking labor by 95%, and cuts costs for order fulfilment by half. It is. The company is expected to announce a next-generation automated order picking solution powered by proprietary machine vision and AI technology in Q1 of 2023.

“We are seeing extremely strong interest from existing and new customers for Brightpick’s solution because it helps customers cut operating costs and eliminate labour challenges, two relevant concerns in today’s tough economic environment,” said Jan Zizka, CEO and co-founder of Photoneo Brightpick Group. “These new funds will help us accelerate the pace of deployment of our solution and scale our US presence.”

“Photoneo Brightpick Group has strong leadership, talented engineers and world-class technology that will fundamentally change how online retailers and grocers do order fulfilment in the future,” said Mitch Yang, managing partner at Taiwania Capital. “We look forward to working closely with them in this high-growth phase. In addition, we believe our connections to Taiwan’s ICT (Information and Communications Technology) sectors could add great value to this partnership.”

Photoneo is a leading provider of robotic vision sensors and intelligence software. Based on a patented 3D technology, Photoneo developed the world’s highest-resolution and highest-accuracy 3D camera, thus unlocking the full potential of powerful, reliable and fast machine learning. Photoneo is part of Photoneo Brightpick Group, headquartered near Cincinnati, OH, which has more than 300 employees and whose technology is used in over 5000 installations across the US, Europe and Asia. Its customers include leading companies such as General Motors, Volkswagen and KUKA.

Brightpick offers the world’s most efficient warehouse automation solutions for ecommerce and grocery order fulfillment. The company’s end-to-end robotic solution autonomously picks, consolidates and dispatches orders in large, small and micro fulfillment centers. The Brightpick solution takes less than a month to deploy, enables warehouses to reduce their picking labor by 95%, and cuts costs for order fulfillment by half. Brightpick is part of Photoneo Brightpick Group, headquartered near Cincinnati, OH, which has more than 300 employees and 5000 technology installations across the US, Europe and Asia. Its customers include leading companies such as General Motors, Volkswagen and KUKA.

G-forces “could spark cost-of-returns crisis”

Posted on by Keith McKinley

Christmas presents are likely to be accelerating at rates greater than a Formula 1 driver as they make their way to our front doors this season. Packages ordered online have been recorded at G-forces akin to motor races and rocket launches by sustainable packaging provider DS Smith, who have uncovered that extreme G-forces could result in a staggering £3.2bn returns bill this Christmas.

To help understand the tough environment that packages must withstand to reach consumers in perfect condition, DS Smith is experimenting with accelerometers, which track the speed of a package through its journey and provide data that can then explain the damage it sustains.

The DS Smith research has shown that a typical online parcel undergoes G-forces measuring up to an astronomical 50G. This is more than five times the level of G-forces that would cause an experienced astronaut to lose consciousness (at 9G) and 10 times more G-forces than are typically experienced on a rollercoaster (at 5G).

The details of the experiment come as almost half (49%) of British shoppers reported receiving a damaged delivery in the last year, resulting in 83 million broken deliveries. Those who had received a damaged item said that on average the item cost £38.40 – adding up to a potential £3.2bn worth of damaged goods sent each year.

The cost of G-forces

Consumers have less tolerance for broken parcels and the increase in the cost-of-living is prompting more people to return lower-value items. Britons reported that the average value that a damaged item would need to be for them to return it has decreased from £22 last year to £18 this year, suggesting that there will be an increase in the number of returns.

Compounding the problem for businesses, and as an increasing number of brands consider charging for returns, 38% of UK shoppers say they expect free delivery and returns.

Gavin Mounce, E-commerce Design Manager, DS Smith comments: “While clearly part of everyday life, ecommerce is still a relatively new form of shopping and we have found through our research that the conditions that packages are exposed to are volatile. Packages need to be ready to travel at astonishing speeds, and that means businesses need to be ready to protect products en route.

“Our Innovation and Design teams are testing how fast packages are travelling and how they are impacted, and we then use that information to work on different designs. We use circular design principles to not only reduce damage but reduce the amount of material used so that packages protect their contents and are as sustainable as possible. We want new ideas, so we will be looking for partners to work with us on this.”

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