E-commerce Packaging Best Practices to Reduce Damage & Returns
E-commerce has transformed how consumers shop—but it has also created one of retail’s costliest challenges: damaged products and high return rates.
More than 20% of e-commerce returns are caused by damage during shipping. For brands, this means lost revenue, higher replacement costs, and reduced customer trust.
The good news? Smarter packaging prevents damage, reduces returns, and protects profits. In this guide, we’ll cover seven proven best practices you can use to strengthen your e-commerce packaging strategy.
1. Understand the Risks of E-Commerce Shipping
Unlike bulk retail shipments, e-commerce parcels travel one by one through carrier networks. Along the way, they face:
Drops and rough handling
Heavy stacking and vibration
Temperature and humidity changes
Busy distribution hubs with less control
Action Step: Design packaging for worst-case scenarios. Use reinforced corrugated cartons for fragile or high-value products.
2. Choose the Right Packaging Materials
The right materials make the difference between a safe delivery and a costly return.
Single-wall corrugated: Lightweight, good for apparel and soft goods
Double-wall corrugated: Essential for electronics, glass, or heavy products
Protective fillers: Air cushions, bubble wrap, molded pulp, or foam-in-place
Eco-friendly alternatives: Paper void fill, corrugated inserts, compostable packaging
Pro Tip: Match your packaging to the weight and fragility of your product.
3. Optimize Packaging Size and Fit
Oversized boxes don’t just increase freight costs—they also increase movement inside the package, leading to damage.
Brands using carton optimization software have seen:
25% fewer damages
15% lower dimensional shipping costs (Packaging Strategies, 2024)
Action Step: Right-size every package and use inserts to minimize empty space.
4. Test for Durability and Protection
Never leave protection to guesswork. ISTA-certified testing simulates real-world conditions such as:
Drops
Compression
Vibration
Climate stress
Action Step: Build durability testing into your packaging process. It’s cheaper to test upfront than replace damaged shipments later.
5. Implement Clear Labeling and Smart Instructions
Even the strongest box can fail if handled incorrectly. Labels give carriers clear direction.
Use Fragile, Handle with Care, or This Side Up labels
Add QR codes for handling instructions, reorders, or tracking
Train fulfillment teams to apply labels consistently
Action Step: Pair strong packaging with clear communication.
6. Balance Protection with Sustainability
Today’s customers expect eco-friendly packaging. Smart swaps can keep products safe while meeting sustainability goals:
Recyclable mailers
Compostable void fill
Corrugated inserts instead of foam
According to the Green Business Bureau, brands using sustainable packaging report 30% higher customer retention.
Action Step: Highlight eco-friendly choices directly on your packaging to build loyalty.
7. Enhance the Customer Unboxing Experience
Packaging is more than protection—it’s part of your brand story. A positive unboxing experience builds trust and repeat sales.
Easy-open designs prevent accidental damage
Dual-purpose packaging simplifies returns and reduces costs
Branded inserts create lasting impressions
Action Step: Treat packaging as both a protective shield and a marketing tool.
Conclusion: Packaging as a Profit Multiplier
E-commerce packaging isn’t just a cost—it’s an investment in profitability.
By applying these seven best practices, brands can:
Reduce damages
Lower return rates
Cut freight costs
Improve customer loyalty
Start by auditing your current packaging process. Even small changes—like right-sizing boxes or adding sustainable fillers—can have a big impact on your bottom line.
Invest in packaging today—and protect your profits tomorrow.
