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Industry News

Published on February 14th, 2018 | by The GC Team

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UK ecommerce suffering from failed deliveries

A report from ecommerce data company PCA Predict, conducted across the UK, the US and Germany, has found that UK online shoppers suffer most from failed and lost deliveries, with 73% having reported delivery problems, compare to 66% in the US and 48% in Germany.   

Each UK ecommerce retailer, says the report, loses an estimated £183,000 a year through lost deliveries, and 19% of failed deliveries “are due to inaccurate delivery address details.”

The report found that over the last year alone, the average cost per failed delivery to a UK retailer was £14.35, with 5.6% of orders not arriving at their destination.

Following a failed delivery, 54% of retailers will refund the delivery charges to the customer, 54% will pay additional costs for redelivery, and over a third (38%) will offer the customer a discount as an apology.

Inaccurate delivery address details were exacerbated by the fact that “customers have such a low patience threshold for address entry that 61% would abandon their purchase if they encountered issues when entering their address details.”

Head of marketing at PCA Predict Chris Boaz said: “If you consider that one in twenty of all online orders don’t make it to the intended recipient first time, these costs quickly build up. Failed deliveries not only carry cost implications, they can also cause significant damage to the retailer’s brand reputation, resulting in loss of repeat custom and failure to attract new customers.”

“To mitigate the issues caused by incorrect address data, retailers need to implement verification solutions that allow customers to provide as accurate data as possible. It’s essential that online retailers facilitate a streamlined user experience that ensures customers can go through the checkout process with ease. Removing this friction from the checkout process will play a huge part in fixing failed deliveries, to the joy of both online retailers and customers.”

Full Fixing Failed Deliveries Report here.

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