Yep, I think a few dollars of extra packing/foam/cardboard will save them a fortune in returns when people refuse to accept damaged goods at the other end.

I had trouble with some stuff being shipped from the USA until the manufacturer changed to a far stronger cardboard for the outer box. It cost them about $2 for the more expensive material but (they told me) it's actually saved them thousands in damage that used to occur during shipping.

While a customer can always refuse to accept a carton that's obviously damaged in some way, it means they have to wait until the product is returned and a new (replacement) is shipped out -- with no guarantees that also won't end up getting broken along the way.