Why Product Damage is the Most Expensive Problem You're Overlooking

In an era where speed, consistency, and presentation matter more than ever, one damaged shipment can ripple far beyond a single return. For manufacturers—especially in the food & beverage and eCommerce space—shipping damage doesn’t just mean wasted product. It jeopardizes business relationships, erodes brand reputation, and impacts long-term profitability.

The True Cost of Product Damage

Product damage is more than an operational issue—it’s a silent profit drain that affects every link in your supply chain. Even a simple return carries significant costs when you consider the time spent picking, packing, and shipping the order, the freight charges in both directions, the labor required to process the return, and the materials used for packaging and handling. And when the shipment is damaged or defective, those costs climb even higher—especially when you factor in lost confidence from your retail and distribution partners.

According to Flock Freight, freight damage and loss are the leading causes of waste in food and beverage supply chains. Of 200 food & beverage shippers surveyed, nearly half reported fully wasted shipments due to damage or loss, and 100% reported partially wasted shipments.

That waste adds up to an average of 2.4 million pounds of food wasted per shipper each year. The financial loss is huge—but so is the brand impact. When damaged goods arrive at a grocery store or distribution center, your customer sees more than a broken shipment—they see unreliability. That can mean chargebacks, strained relationships, and lost shelf space.

How Product Damage Impacts Your Brand Reputation

To a retailer or distributor, a damaged shipment isn't just a logistical inconvenience—it's a signal about how much you value quality and partnership. They rely on your consistency to keep their own shelves stocked and customers satisfied.

Research from BakeryAndSnacks.com in 2010 found that 72% of consumers viewed retailers with damaged frozen-food packaging as offering lower-value products, and 25% of even the most brand-loyal shoppers questioned the brand’s quality when packaging was damaged. Product damage doesn't just impact the consumer, though. If your shipments routinely arrive dented, leaking, or compromised, your partners are the first to notice—and they may quietly start sourcing elsewhere.

And expectations are only getting higher with younger generations. In a 2022 Anyline study, just 57% of Silent Generation respondents said a poor delivery experience would make them reconsider shopping with a brand again. But that number jumps to 72% for Baby Boomers, 76% for Gen X, 81% for Millennials, and a striking 86% for Gen Z.

And Gen Z’s influence is only accelerating. According to McKinsey & Company in October of 2025, Gen Z is “established, fast growing, and fast changing.” Their average age today is 22, ranging from 15 to 29 years old. Since last year alone, there’s been a 45% increase in Gen Zers who are married, a 23% increase in those with children—and 19% are already in decision-making roles at work. This generation is rapidly gaining spending power and influence across industries, including B2B purchasing.

That means the customers driving today’s growth—both consumers and the buyers serving them—are also the least tolerant of packaging or delivery issues. In an industry where reputation moves fast, a single damaged pallet can impact thousands of future transactions. Packaging that arrives intact and professional doesn’t just protect your product. It protects your position in a changing marketplace.

Your Packaging is Your Handshake

Packaging is more than a container—it's your handshake with every buyer. When your products arrive clean, intact, and protected, it sends a clear message: you take pride in what you make and respect the people you do business with.

But if a shipment arrives crushed, torn, or leaking, the opposite is true. It tells your buyer your product wasn’t protected, and by extension, that your operation isn’t dependable. Every unbroken box, on the other hand, reinforces trust and strengthens your brand reputation before your product ever hits the shelf.

Common Causes of Product Damage in Transit

Product damage happens for a few predictable reasons, and most of them are preventable:

• Oversized boxes with too much empty space
• Weak pallet wrapping or load securement
• Inconsistent or rushed manual packing
• Poor packaging material or structure
• Insufficient cushioning or void fill
• Environmental factors such as heat and humidity
• No transit testing
• Poor unit load design

Each small weakness compounds across thousands of shipments, but with smarter design and the right equipment, they can be eliminated.

Packaging Design and Testing: Your First Line of Defense

Preventing damage starts before your product ever leaves the dock. Testing packaging under real-world transit conditions reveals weak points before they cause returns or chargebacks. Right-sized packaging minimizes movement and reduces empty space, lowering both damage rates and freight costs. The right materials matter, too. Strong corrugated options, foam-in-place systems, or molded inserts all provide protection tailored to your product's needs.

The Role of Automation in Preventing Damage

Automation isn't just about speed—it's about consistency and precision. Both directly reduce damage rates.

Automated case sealers, void-fill systems, and stretch wrappers ensure every shipment is sealed and protected the same way, every time.

At Shippers Supply Inc., we provide end-to-end packaging solutions to protect your products and strengthen your brand. From custom packaging design and material selection to automation systems, we help manufacturers and distributors create consistent, damage-resistant shipments. Our experts design and support solutions that fit your operation, reduce damage, and improve efficiency—whether your needs are hands-on, automated, or a combination of both.

Protect More Than Your Product

When you reduce damage, you’re not just saving product—you’re protecting your reputation with the buyers who keep your business growing.

Each intact delivery tells your partners they can rely on you. Each unbroken pallet reinforces trust in your brand.

Investing in better packaging and automation pays off in fewer claims, lower waste, and stronger customer relationships—whether your customers are retailers, distributors, or end consumers.

Because protecting your product means protecting your brand.