Black Friday Frustration: Europe expects €1.3B in damaged goods from inadequate packaging

26 Nov 2021 --- The already booming e-commerce market is set to balloon as Black Friday sales slash shopping prices worldwide. However, faulty and insufficient packaging designs are expected to result in over €1.3 billion (US$1.5 billion) worth of damaged goods being delivered in Europe alone, according to new research by DS Smith.

Poll figures gathered by the company show almost one quarter (23%) of Europeans expect to receive up to three faulty or damaged items following the Black Friday and Cyber Monday sales. 

This can have severe consequences for environmental sustainability, financial losses and consumer frustration. PackagingInsights discusses these issues and how industry can improve the design and material standards to solve them, with experts from leading e-commerce packaging suppliers DS Smith and Mondi. 

“Black Friday Frustration” 
DS Smith’s research, conducted through polling company OnePoll, shows the number of broken packages consumers expect to receive this year, based on past experience, could fill 3,975 Olympic-sized pools.

This estimation would total the same worth equating to 4.5 billion Freddo’s chocolate bars, 228,300 Birkin handbags or 26,850 Tesla Model 3s, says the company.

DS Smith has coined the term “Black Friday Frustration” because of this trend. More than two in five shoppers (43%) say products arriving broken or damaged is the most frustrating consequence of receiving delivery. 

Gavin Mounce, DS Smith’s e-commerce design manager, says this problem can be tackled by tailoring packaging designs specifically for different companies and their products. 

Mondi emphasizes that product protection and environmental sustainability are not mutually exclusive.“The key to developing packaging that withstands the e-commerce journey is working closely with each customer to understand their unique needs. At DS Smith, we look at each stage of the packaging journey to develop packaging solutions that deliver the quality and performance needed to protect the product without compromising on sustainability.” 

“We have a consistent innovation program in place for exploring and developing the latest technologies, including our DISCS e-commerce testing process and laboratories.”

DISCS methodology 
DS Smith’s DISCS system uses five types of testing: 

• Impact: What if a heavy object hits your package on the conveyor?
• Shake: Is your package optimized for diverse transport methods?
• Crush: Can your package handle the pressure of bad stacking techniques?
• Shock: What if your package is thrown into the back of a van?

“The system consists of five pieces of equipment, each replicating a part of the product journey and therefore providing real-world testing, making sure the product arrives at the consumer in perfect condition,” adds Mounce. 

Environmental impacts 
With over 77 million packages expected to be delivered broken following the Black Friday weekend, the knock-on effects for the environment could be enormous. Material usage, transport costs, carbon emissions and energy output will rise as a result. 

Mondi’s e-commerce director Daniela Dorner, says these faults and their impacts should be central considerations for industry players. 

“The e-commerce industry and its supply chain are still relatively young, and topics like sustainability and efficiency are critical. As the supply chain becomes more mature, all players are collectively making progress – from packaging producers, brand owners and last-mile logistics providers to end-consumers and recyclers.” 

Dorner says the issues still come down to two central problems: too much unnecessary plastic being used and many products often being over-packaged. 

“When it comes to the first point, we are starting to see things moving in the right direction with many important e-commerce players switching to more sustainable alternatives, including paper-based solutions – for example. Just recently, Amazon announced it would cut plastic packaging in Germany.” 

“In addition, we are seeing a strong preference among end-consumers for online brands that use [environmentally] sustainable packaging. As for packaging optimization, innovative developments are taking place all the time, particularly when it comes to right-sizing to minimize material consumption and ensure that less air is being shipped,” she continues. DS Smith estimates the value of  26,850 Tesla Model 3s will be lost to broken packaging in Europe following the Black Friday weekend.

Paper’s environmental importance 
Dorner emphasizes the use of paper is critical to improving recycling rates and can be employed without impacting product protection if done properly. 

“When creating an e-commerce packaging solution, our in-house designers always emphasize that convenience and sustainability are not mutually exclusive,” she says. 

“Sustainable packaging that is fit for purpose, right-sized and optimized to protect the product using the least amount of material possible also adds convenience for the consumer. Right-sized packaging eliminates empty space, avoids waste and weighs less. It is also easy to recycle and can be re-used for returns.” 

Dorner highlights the company’s EcoSolutions approach, which uses the motto “plastic when useful, paper where possible.” Through this approach, three central qualities are ”economic, efficient and easy.”

“The result is faster and safer e-commerce packaging, better use of space and materials, and satisfied consumers with solutions that add value and help to reduce total cost,” she notes.

“Our multi-material packaging portfolio includes solutions from base materials to converted paper bags and corrugated boxes. These solutions range from e-grocery to fit-for-purpose packaging for shipping fashion and electronic items.”

PackagingInsights recently explored the accelerated growth of e-commerce in the COVID-19 age in a webinar with Dorner and Akhil Aiyar, senior market analyst at Innova Market Insights.

By Louis Gore-Langton