Not every company or product will be vulnerable to theft by putting the logo on shipping packaging. But if your product is easily resold or expensive, then you need to be aware of theft.
Branded packages are normal for most businesses that sell ecommerce goods. By providing branded packaging, companies are expecting to elevate the "unboxing" experience and to ultimately delight and wow the customer. But what if your branded shipping is hurting your brand, customer experience, and bottom line?
Brand Boxes Become a Target?
Usually, the last step of the ecommerce logistics journey is to deliver the product to the customer's doorstep. Unfortunately, there are dishonest people in the world that will steal packages off of doorsteps. It is unguarded, brand new merchandise, which can be tempting for some people. Depending on your brand, your price point, and how easy your products are to resell, your package sitting on your customer's doorstep could be even more alluring to passersby if they can easily see your branding.
In a recent article, a disgruntled customer raised concerns that an iconic shoe company had shipped their package covered with the companies branding. The customer thought the merchant was asking for the package stolen off their doorstep because of the branding. Instead of increasing the customer experience, the packaging actually made this customer feel like the merchant was not concerned about him receiving the package.
What are the Risks for Merchants?
What if a package gets taken off a doorstep? For merchants, this can result in a couple of negative scenarios. Depending on your policy surrounding lost or stolen package claims, it could result in a refund or having to replace the product. This means that the merchant loses revenue and merchandise. Or the customer may decide to turn to their bank to solve the problem instead of the merchant, which then can result in a dispute.
Furthermore, package theft tarnishes the customer relationship with the merchant even though the package was out of the merchants’ hands at that point. A Shorr Theft Report found that 61% of customers felt that the online retailer did not do enough to prevent package theft. The report also found that 51% of customers thought that the shipping company was doing what they could to avoid package theft.
There is an Alternative
There is a way to elevate the customer experience through branding, just not on the outside of the shipping box. Merchants can make the product packaging inside the box look amazing. Or merchants can consider creative or personalize inserts that go into the package. If your product is vulnerable to being stolen, then it may be in the best interest to keep your branding solely inside the shipping package.
If You are Vulnerable to This, You May Also Be Vulnerable to Chargeback Fraud
Not every company or product will be vulnerable to theft by putting their logo on their shipping packaging. But if you think your brand falls into that category, then you need to be aware of chargeback fraud as well. Chargeback fraud is when a cardholder disputes a purchase in an attempt to keep the merchandise and get their money back from the transaction. There are instances where chargeback fraud is a result of buyer's remorse, poor budgeting, or the inability to return products. Other times cardholders are purchasing the product with the sole intention of disputing the charge and selling the product on Craigslist or eBay.
There are two ways to deal with chargeback fraud. The first way is to handle disputes by creating a well-crafted dispute response document that can disprove the customers' claims. The other way is to prevent an invalid dispute from ever happening. Merchant can do this through Real-time Resolution (RTR). RTR allows for real-time communication of customer, order, and product information to the cardholder's financial institution. RTR enables the issuing bank to make an educated decision about the validity of the dispute.
To learn more about Real-time Resolution and the possible ROI for your company, you can schedule a demo with one of our dispute experts.