When products arrive damaged during transit, businesses face not just financial losses but also potential damage to customer relationships and brand reputation. Drawing from real-world experiences of logistics experts and industry leaders, this article presents five crucial lessons that can transform how your business handles shipping damages. Whether you're running a small e-commerce operation or managing large-scale logistics, these insights will help you build more resilient shipping processes and maintain customer trust even when things go wrong.

Documenting and Identifying Transit Damage

Years ago, we managed a cross-country move for a client with a large collection of rare artwork and antiques. Even with careful packing, one shipment arrived with a broken glass case holding a 19th-century sculpture. With over 20 years in the industry, I knew this situation required technical skill and quick, thoughtful communication to maintain trust.

The first step was to identify the problem. I inspected the damaged item, took photos from every angle, and compared them to the pre-move condition report. This ensured our claim was strong when sent to the insurance provider. I worked with our team to contact a restorer who could evaluate repair options. This two-part approach involved addressing client concerns and strengthening the claim, which kept the situation under control. I also contacted the carrier to ensure accountability and requested faster processing from their claims department.

The biggest lesson? Even careful preparation can't prevent all risks, but how you respond can shape the outcome.

Margarita Hakobyan, CEO and Founder of Movers Corp, MoversCorp

Implementing Effective Quality Control for Shipping

In one of my previous experiences, during a peak sales period, we experienced a shipment of goods arriving at a customer's facility with significant damage due to improper handling during transit. This was a critical situation as it involved high-value items and a key client in New York City.

To address the issue, we immediately assessed the extent of the damage and gathered necessary documentation, including photographs of the damaged goods, the bill of lading, and shipment receipts. We contacted both the carrier and our insurance provider to initiate the claims process. By maintaining open communication with all parties, we ensured that the claim was resolved efficiently and received compensation within a reasonable timeframe.

To prevent similar incidents in the future, we introduced stricter quality control measures for packaging. For example, we implemented impact-resistant packaging materials and partnered with carriers that offered enhanced tracking and accountability for fragile goods. Additionally, we trained our warehouse and logistics team on identifying potential packaging weaknesses before shipment.

The experience taught us the importance of proactive planning and thorough documentation in logistics. By addressing the root cause of the issue, we not only avoided future losses but also strengthened relationships with our clients through transparency and swift action, reinforcing their trust in our commitment to quality service.

Viraj Lele, Industrial Engineer & Business Unit Advisor, DHL Supply Chain

Managing Customer Relations After Shipping Damage

When we received reports of damaged goods during transit, we immediately contacted our shipping provider to file a claim, ensuring we had clear photo evidence from the customer. Simultaneously, we prioritized our customers by shipping replacements within 24 hours and offering them a small gift as an apology. The key lesson was implementing extra protective packaging and partnering with a more reliable carrier for fragile items. We also learned the importance of proactive communication—keeping customers updated throughout the resolution process not only built trust but turned a potentially negative experience into a loyalty-building moment.

Rachael Wilson, Entrepreneur & Founder, Doll Smash

Developing Proactive Damage Prevention Strategies

The potential receipt of damaged goods should be addressed proactively, as part of your risk mitigation and management strategies, within your supply chain network. Accepting the occurrence of these situations will ensure the most important part of your operations will not be impacted. In this case, assurance that there will not be any disruptions to the availability of your material and/or product. 

One approach would be to verify the turnaround time for replacement of damaged material. The administrative process for freight claims may take time, sometimes requiring lengthy investigation. Local deliveries may be easier and quicker to resolve, however, global freight damages take longer to rectify as multiple parties may be involved. A detailed inspection (including photos) during receipt is critical, as this may impact the freight claim process should there be any damages to report. Signing off on delivery receipts then discovering damages at a later time are challenging to dispute, as it is a time-sensitive expectation. 

To summarize, ensure you always have replacement material readily available, and inspect your deliveries prior to signing off on the receiving documents.

Georgina Fenning, Global Supply Chain Advisor

Creating Clear Communication Protocols for Damage Claims

During my role as a Logistics Specialist, I have been facing issues where shipments of critical components arrived damaged, risking production delays. I immediately coordinated with the carrier and supplier to document the damages, including photos and reports, to initiate the claims process. Simultaneously, I worked with procurement to identify alternative sourcing options and adjusted production schedules to mitigate disruption.

This experience taught me the importance of maintaining clear communication with all stakeholders, having contingency plans, and thoroughly monitoring transit processes to prevent recurring issues. It reinforced the need for proactive risk management in logistics.

Orlemyr Sousa da Silva, Logistics Specialist, CNH

Conclusion: Building Resilient Shipping Processes

Successfully managing damaged goods in transit requires a multi-faceted approach that combines preventive measures with responsive action plans. The experiences shared by industry professionals highlight that while damage during shipping may be inevitable, its impact on your business isn't. By implementing robust documentation processes, strengthening quality control measures, prioritizing customer satisfaction, developing proactive strategies, and maintaining clear communication channels, businesses can transform shipping challenges into opportunities for service excellence. Remember, it's not just about handling damaged goods—it's about building trust and demonstrating your commitment to customer satisfaction through every step of the resolution process.