DS Smith: Packaging damage could send return costs soaring this Christmas

• G-forces greater than a rocket launch are recorded on e-commerce packages [2].
• The forces exerted on an average parcel amount to 50G.
• The impact of G-forces could generate total returns of €18.1 billion across Europe.

Christmas presents arriving at our door this season are likely to be subjected to G-forces at rates even greater than a Formula 1 driver, according to leading sustainable packaging manufacturer DS Smith, which found that the packages ordered online, G-forces reminiscent of car races and rocket launches have been recorded. Based on the above, DS Smith has calculated that extreme G-forces could lead to an impressive €18.1 billion in class returns this Christmas!

To understand the harsh conditions that packages must meet to reach consumers in perfect condition, DS Smith is experimenting with ‘accelerometers’, which track the speed of a package along its journey and provide data that can then to explain the wear and tear it suffers.

DS Smith’s research has shown that a typical electron beam experiences G-forces as high as 50G. This is more than five times the level of G-forces that would cause an experienced astronaut to lose consciousness (at 9G[3])

and 10 times more G-forces than those normally exerted on a roller coaster (at 5G[4] ).

According to the survey, almost half (45%) of European online consumers reported receiving a damaged package in the last year, bringing the number of damaged deliveries to 377 million.

Those who received a damaged package said it cost an average of €47.94, so in total, the cost of damaged shipments is €18.1 billion annually.

Consumers now react if they receive a damaged package and have less tolerance. This is because the rising cost of living is pushing more and more people to return items of little value. Europeans reported that the average value of a damaged item to return it fell from €26 last year to €21.50 this year, suggesting an increase in the number of returns.

As the problem for businesses widens, with more companies considering charging for returns, 43% of European consumers say they want free delivery and returns.

THE Gavin Mounce, Ecommerce Design Manager at DS Smith, states: “Although clearly part of everyday life, e-commerce is still a relatively new form of shopping and we have found through our research that the conditions to which packaging is exposed are changing. Packages need to be ready to travel at impressive speeds, and that means businesses need to be ready to protect products along the way.”

“Our innovation and design teams look at how fast packages travel and how they are affected, and then we use that information to work on different designs. We use the principles of circular design to reduce not only damage but also the amount of material used so that packaging protects its contents and is as sustainable as possible. We want new ideas, so we will be looking for partners to work together on this.”

Research
– Market research conducted by OnePoll:
o Consumer survey: 8,000 EU adults. Conducted between 7 November and 21 November 2022.

About DS Smith:
Globally, DS Smith is a leading provider of sustainable fibre-based packaging supported by recycling and paper manufacturing operations. It plays a critical role in the supply chain in all sectors such as e-commerce, fast-moving consumer goods and industrials.

Through its purpose of ‘Redefining packaging for a changing world’ and its ‘Now and Next’ sustainability strategy, DS Smith is committed to leading the transition to a circular economy, while providing more circular solutions for its customers and the wider society – replacing single-use plastics, reducing the carbon footprint of supply chains and providing innovative recycling solutions. Its specialized box-to-box in 14 days model, design capabilities and innovation strategy are at the heart of this approach.

Headquartered in London and a member of the FTSE 100, DS Smith operates in 34 countries employing approximately 30,000 people and is a strategic partner of the Ellen MacArthur Foundation. Its history goes back to the packaging manufacturing business started in the 1940s by the Smith family.

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[1] The amount of g-forces experienced by F1 drivers during race weekends (hitc.com)
[2] What g-force do astronauts experience during a rocket launch? | (spaceanswers.com)
[3]What g-force do astronauts experience during a rocket launch? | (spaceanswers.com)
[4] What is the G-force on a roller coaster? – Short-Facts