E-Commerce Packaging: How to Reduce Damage and Returns

Shipping damage doesn’t just hurt your product, it hurts your brand, reputation, and customer relationships. Fortunately, there are smart ways to reduce return rates, starting with better packaging options.

Ready to learn more? In this article, we’ll cover:

• How product damage affects your bottom line
• Four packing tips to improve protection
• Extra tips to prevent damage in transit 

With a few thoughtful changes to your packaging process, you can protect your products, improve customer satisfaction, and minimize waste.

How Product Damage Affects Your Bottom Line

Hopefully, you’re already monitoring your return rate—an essential e-commerce metric that shows the percentage of orders returned out of your total sales. While return rates vary by industry, the national average is around 17%.

If your e-commerce business is seeing a high number of returns or exchanges due to damage (which accounts for about 20% of all returns), it’s time to take action. The good news? Damaged-related returns are often preventable. That means the problem isn’t your product, it’s how it’s being packaged and delivered.

A damaged product exchange costs your company money: you have to discard the original product, cover the cost of a replacement, and pay for picking, packing, and shipping all over again. A damage-related return is also a lost sale, and the item typically can’t be resold. On top of that, disappointed customers may leave negative reviews that impact future sales.

The solution is straightforward. Improving your packaging process reduces damage and improves customer satisfaction—two key steps toward cutting losses and increasing revenue.

4 Steps to Package E-Commerce Products Effectively

To reduce product damage during transit, follow these four steps to improve your packaging process and protect your merchandise.

1. Start with the Right Inner and Outer Packaging

The first step is choosing the right packaging for your product. Depending on what you’re selling, you may need multiple layers of packaging. For example, skincare products typically come in a jar or bottle, placed inside a product box labeled with ingredients and usage instructions. This inner packaging provides a baseline of protection against common issues like leakage or breakage.

From there, the product box should go into a larger shipping container. The outer box must be large enough to accommodate cushioning materials, but not so oversized that the item shifts during transit or requires excessive void fill. A proper fit reduces movement, minimizes damage risk, and cuts down on packaging waste.

In some cases, you may not need a box at all. If you’re shipping small, less fragile items like beauty products, jewelry, electronics, or art supplies, a protective mailer may be more efficient. Options like Hexcel’Ope™ offer both protection and sustainability, serving as a recyclable alternative to traditional plastic bubble mailers. 

2. Fill Empty Space in Boxes

Once your product is secure inside the box, the next step is to fill any empty space with cushioning. This step is critical, especially for long-distance shipping where packages are stacked, dropped, or jostled. Proper void fill helps absorb shock and prevents items from shifting inside the box.

HexaFil™, is a high-performance void fill solution that  offers several advantages over traditional materials: 

• Maintains its shape without flattening for consistent protection
• Works well on its own or with other packaging materials
• Customizable for each shipment, reducing waste
• Fully curbside recyclable for eco-conscious customers
• Available in natural and white for a clean, professional look

HexaFil™ can be dispensed manually or via an automated dispenser.

Manual dispensing is great for businesses that ship a range of products because it gives you complete control over how much (or how little) void fill you use. Whether you’re packing a small, lightweight item or a larger, more delicate product, manual dispensing lets you adjust on the fly to meet the specific needs of each shipment. Many businesses also prefer this option because it doesn’t require electricity, making it easy to set up anywhere on the packing floor. Plus, it’s simple to operate and easy to train new employees on, which helps streamline onboarding and daily operations without adding complexity.

An automated dispenser, such as HexcelPack’s AutoHexaFil™, operates differently than manual systems by using programmable settings to dispense pre-cut lengths of protective material. This is especially useful for businesses that ship similar-sized products, as it ensures a consistent, predetermined amount of cushioning is delivered every time. By automating the process, you not only reduce the risk of under- or over-packing, but also improve packing speed and efficiency, making it easier for employees to keep up with high-volume or repetitive orders.

Whether your focus is flexibility, speed, or precision, choosing the right dispensing method helps streamline fulfillment while reducing product damage.

3. Wrap Products for Added Protection

Do you sell items that don’t come pre-packaged in their own containers? This is common for businesses that sell things like framed art, ceramics, and books. In that case, it’s a smart idea to use product wrap to protect your goods before boxing them.

HexcelWrap® is a paper-based alternative to plastic bubble cushioning. It uses the same slit-paper design as HexaFil™, is highly effective at absorbing shock, curbside recyclable, and great for wrapping fragile items of all shapes and sizes.

HexcelWrap can also be paired with HexaFil. When used together, the interlocking materials stabilize the product inside the box and provide enhanced protection throughout the journey.

4. Use Pallet Wrap for Bulk Shipping and Storage

When shipping or storing products in bulk, stability is key. One of the most effective ways to protect merchandise is by loading boxes onto pallets and securing them with pallet wrap. Pallet wrap keeps boxes from shifting around in transit, improves safety, and helps deter theft or tampering.

If you’re already palletizing goods, it's important to make sure it’s done right. That starts with choosing the best pallet wrap for the job. HexcelStretch™ is a recyclable, paper-based pallet wrap that delivers up to 30% better load stability than plastic wrap. It uses the same advanced design principles found in other HexcelPack products.

Available in three sizes, HexcelStretch can wrap 30 to 90 pallets per hour and support loads up to 5,400 pounds, making it a high-performing solution for warehouses and distribution centers aiming for sustainability without sacrificing strength.

More Tips to Reduce Returns and Exchanges

Looking for additional ways to minimize product damage and keep return rates low? These strategies can help boost customer satisfaction and protect your bottom line:

• Use durable shipping boxes that resist punctures, crushing, and tears. Line all sides of the box interior with protective material to safeguard against impact and accidental breaches.
• Avoid overpacking. Overfilled boxes reduce space for cushioning and increase the risk of items rubbing, shifting, or breaking.
• Seal packages securely with high-quality tape. For soft goods, consider adding a warning label advising recipients not to cut too deeply when opening.
• Label boxes clearly with handling instructions like “Fragile” or “This Side Up” to encourage careful treatment during transit.
• Use shock and impact indicators to alert handlers to potentially damaging events during shipping.
• Vet your shipping partners carefully. Run A/B tests by sending identical shipments with different carriers to assess reliability and damage rates.
• Consider shipping damage insurance as a final layer of protection. It can help offset losses if damage occurs despite your best efforts.

Sustainable Packaging to Protect Your E-Commerce Shipments

Struggling with high return rates due to product damage? At HexcelPack, we’re here to help you rethink your packaging strategy with sustainable solutions that protect your products and your reputation.

Start by sending us your items. We’ll wrap, pack, and ship them back so you can see the difference firsthand.