Fulfillment Lexicon

Damage Rate

Damage Rate is the percentage of orders or units that arrive damaged or are found damaged in the warehouse, usually measured from customer claims and return reason codes.

Topic: Metrics & Unit Economics Entry KPI-066

Why it matters for ecommerce brands

Every damaged order costs a replacement, return shipping, and a support contact. Separating warehouse damage from in-transit damage shows whether to fix packaging, handling, or carrier choice.

Formula and calculator

Damage rate = orders reported damaged ÷ orders delivered × 100

Try your own numbers

The example values are filled in. Change any number to see your own result.

orders
orders

Damage rate = 0.30%

Common questions

How do I lower the damage rate on shipped orders?
Review damage claims by SKU and carrier, then test better packaging such as right-sized boxes, inserts, or poly mailers swapped for boxes on fragile items. Drop or vibration tests before rollout help confirm the change works.

Cite this entry

"Damage Rate." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/damage-rate/

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