Secure packaging key to online retail success

With an estimated 3.7 billion parcels sent annually to customers domestically and throughout the EU, it is perhaps no surprise the Home Office estimates the theft of goods in transit costs businesses in excess of £6.6 billion every year.

Goods being transported are ever-increasing in value, with a higher online demand placed on luxury items such as smartphones, tablets and other premium products – 2014 saw an estimated 74.5 million devices shipped from Samsung and Apple alone. This increase in the revenue of luxury goods will certainly work well for the value of the market, however with it comes an increased risk of theft, loss of business income and more specifically loss of reputation.

We have seen cases where companies have been defrauded by expensive electronic items replaced with similarly weighted bricks, or generic packaging purchased and used to imitate the genuine product. It’s therefore imperative that packaging is fit for purpose, and secure enough to avoid recognition of a high-end product while in transit.

It’s not just the cost of replacing an item – there are also related costs to re-packaging, courier costs and time spent on investigating where the shipment has gone.

Whether you are an online division of a high-street brand, or an internet-based company, the reputation of your business will focus solely on the experience of the customer.

With a wider availability of products, simpler to purchase than ever before, it presents a struggle for retailers to retain customer loyalty if their experience has been negative. Therefore it is vital shops and logistics suppliers are fully aware of the secure packaging options available to reduce the risk of losing customers and revenue.

Packaging supplies such as standard bubble wrap envelopes and brown packaging tape are now available from high street retailers, making it easy for thieves to “clone” generic shipments and defraud companies and customers. Gone are the days when black, plastic wrapping on a pallet proved sufficient protection. Today, this method of wrapping makes it difficult to spot-check for missing or tampered goods. 

The secondary carton used can also offer greater protection, by making one parcel indistinguishable from the next while others offer tamper-evident closures. These all-in-one packaging concept solutions have been specifically designed for the safe transportation of high value goods, such as smartphones, perfumes and tablets. With load bearing foam to counteract impact, and a self-sealing, tamper-evident tear-strip closure these cartons allow the supply chain as well as the recipient to instantly see if their package has been compromised.

One area often overlooked is the standard brown tape used in packaging, which is easily interfered with and then replaced. Those who are shipping high volumes of expensive goods should consider looking at secure tape options, such as bespoke, personalised tape which has been printed with a company logo or traceable code. Then there are tapes offering features such as ultra-delamination or inking when tampered with, and tapes using invisible UV fibres and polydot technology that is almost impossible to duplicate. Originally designed for applications in the Ministry of Defence and high-security government shipments, these tapes are now being used in the transportation of large-volume consumer goods to minimise the risk of theft.

Of course, such packaging enhancements may incur an increased cost compared with generic packaging, but logistics suppliers and retailers need to weigh up the associated risks to luxury products and brand reputation, versus the cheapest packaging solution. It’s all about choosing the right solution for the value of the product to ensure safe and secure delivery, and the best possibility of maintaining customer retention and future orders.