21 May 2019
do failed deliveries really cost your business?
We’ve all been there, having
stayed in all day eagerly awaiting a parcel, you’re greeted by a missed
delivery notice instead. All it takes is popping out for a few minutes or being
out of earshot of the doorbell and you’ve got a frustrating failed delivery to
Missing a delivery is
irritating enough for consumers, but the knock-on effects for e-commerce,
courier and delivery companies are more than just a nuisance.
At scale, failed
deliveries can add up to a far bigger and more far-reaching problem for
delivery businesses, with financial, reputational and administrative
consequences. We’ve explored the impact of failed deliveries as well as how to
minimise the damage.
A dent in your profits
According to the
stats, one in 20 UK online orders fail to make it to their delivery
destinations first time, and our delivery companies are losing out more
financially than their international counterparts. A survey of 300 businesses
in the UK, US and Germany found that UK-based e-commerce retailers
suffered an average annual loss of £183,000 through lost or failed deliveries, nearly £30,000 more than US businesses, and
£75,000 more than those in Germany.
consumers, the report revealed that 78 per cent expect businesses to resolve
delivery issues, regardless of who’s at fault. This only compounds the failed
delivery financial burden for couriers and e-commerce companies, 54 per cent of
which will refund delivery charges to customers and cover the cost of
redelivery, while 38 per cent also offer a further discount by way of apology.
Whether yours is a
delivery company or an online retail business, all this adds up to a
considerable hit to your profit margin, on top of the manhours spent tracking
and resolving failed deliveries.
Damage to your brand reputation
Consumers are less
forgiving than ever these days, thanks in part to the sheer abundance of choice
they have access to. In most cases, if they experience a failed or lost
delivery with one company, they can find a dozen more who may offer a more
reliable service. In fact, 57 per cent of customers would
choose not to shop again with a retailer if they use a poorly-performing
delivery company, which
is bad news for all parties.
Retailers will soon
take a service contract elsewhere if too many failed deliveries are costing
them customers, and it doesn’t take long for other retailers to follow suit
when a courier is known to be unreliable. For consumer-facing businesses, loss
of repeat custom can be even more damaging when negative word of mouth and
publicly visible online criticism keeps even new customers away.
Time spent resolving failed
Even a simple
redelivery takes time to organise for a delivery company’s office team, and if
one in 20 online orders are failing, that’s a lot of admin time spent on a task
that’s largely avoidable. Worse case, your staff have to spend considerable
time tracking down lost deliveries or speaking to frustrated customers or
clients unhappy with your service.
Your delivery drivers
must also fit redeliveries into their shifts, delaying other jobs and
subsequently increasing the chances of further missed delivery slots. It’s all
time your business pays for, not to mention the space that returns and
undelivered stock take up in your warehouses.
EPOD solutions help reduce the impact
of failed delivery
With an Electronic
Proof of Delivery solution supporting your operations, your business can give
every parcel the best chance of reaching its recipient first time. Live map and
vehicle tracking functionality on connected mobile computers or handheld devices enable drivers to find addresses quickly and
easily, and your office team can send rerouting info in real-time if a problem
on the road threatens delays.
Fleet managers can see
exactly where delivery drivers are at any point and can keep consumers and
clients informed of changes to delivery windows as they happen. Drivers can log
successful deliveries on handhelds, automatically sending digital proof of
delivery directly to admin teams, as well as details and subsequent actions
taken after a failed delivery.
EPOD software and connected devices create a
trackable record of events, giving your staff the visibility to rapidly answer
failed delivery queries and unite consumers with their goods as soon as
Could EPOD software
help your business minimise the cost of failed delivery? Contact us today to find out more.