case-studyelectronicsdamage-reduction
Case Study: Electronics Retailer Damage Reduction
How an electronics seller reduced shipping damage claims by 80%.
January 9, 20262 min read16 views
Electronics Damage Reduction Case Study
From 4% damage rate to under 1%.
The Problem
| Metric | Before |
|---|---|
| Monthly shipments | 800 |
| Damage rate | 4.2% |
| Avg claim cost | $85 |
| Monthly damage cost | $2,856 |
Root Cause Analysis
| Cause | % of Damages |
|---|---|
| Inadequate cushioning | 45% |
| Box too large | 25% |
| Drop damage | 20% |
| Carrier mishandling | 10% |
Solutions Implemented
1. Packaging Standards
- Double-wall boxes for all items
- 2" minimum cushioning
- Corner protectors for large items
- 5 standard box sizes
- Matched to product categories
- Eliminated oversized boxes
- UPS for fragile items
- Added insurance for high-value
- Signature required over $200
Results
| Metric | Before | After | Change |
|---|---|---|---|
| Damage rate | 4.2% | 0.8% | -81% |
| Monthly claims | 34 | 6 | -82% |
| Claim costs | $2,856 | $510 | -82% |
| Packaging cost | $1.20 | $2.10 | +75% |
| Net savings | - | $1,626 | - |
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