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The real cost of failed deliveries

In retail, few experiences have the potential to damage a company’s reputation like a failed delivery. But did you know that one in 20 online orders never make it to their intended location? This is an extremely worrying statistic for retailers – and for their customers. 

It’s costly for retailers 

65% of retailers say that failed or late deliveries are a significant cost to their business. 

In fact, the average cost of failed deliveries per retailer is almost £200,000 a year. Expensive business! Even if the failed delivery was actually down to the courier, 78% of consumers still expect the retailer to resolve the issue. 

And it isn’t just financial costs that make up the consequences of a failed delivery. Retailers should also consider the damage to their reputation that can occur. For example, 57% of consumers would avoid using a retailer again if they had a negative delivery experience. Let’s not forget that negative experiences are widely shared on social media, and have the potential to be reached by thousands, if not millions of people – who may then form a negative opinion of your brand based on what they have heard.

It’s annoying for consumers

We’ve all been there: waiting for our new purchase to arrive only to be faced by the fact that it isn’t coming. Whether it’s late or doesn’t turn up at all, it’s a huge cause of frustration for shoppers, and they are likely to think twice about using your company again.

A huge 62% of consumers have experienced a late or failed delivery. However, what many consumers don’t realise is that according to 80% of retailers, they are to blame for failed deliveries. This is due to the fact that they enter incorrect address data in the checkout – perhaps because they are in a hurry, not concentrating properly or just make a simple typo. 

However, this issue can be easily combated with the right technology. For one, type-ahead address lookup helps hugely, simplifying the checkout process for the shopper by allowing them to complete an entire address in just a few keystrokes. It also ensures that the address data they enter is clean and accurate, improving data quality, reducing the risk of failed deliveries, frustration, costly re-deliveries and negative brand perception. 

Interested in learning more about the implications of failed deliveries and how to combat the issue? Get your free copy of Fixing Failed Deliveries: Improving Data Quality in Retail. 


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