Online delivery failure is expected to cost over £770m this year

Recent figures released from a new report have shown that if a similar pattern continues, the cost of online delivery failure to UK retailers and marketplace sellers is set to reach a massive £771m this year.

The IMRG Valuing Home Delivery Review for 2014 has shown that the cost to retailers alone will reach over £470 million.

However, despite these figures being worryingly high, the IMRG is also estimating that costs associated with delivery failure have actually fallen by around 50%, using like-for-like volume.

Head of e-logistics at IMRG, Andrew Starkey, said:

“Failed deliveries resulting from orders placed with retailers and marketplace traders each year create in excess of £¾ billion of avoidable costs – we cannot afford to allow the pace of innovation to slow. Recent innovations in e-retail delivery have already reduced this cost and provide shoppers with more choice, and more information about when and where they can expect their deliveries.

“Giving the customer the ability to fully engage in the delivery process allows them to make more informed decisions about the service they want and then to help manage the ‘final mile’ – cooperating with the delivery company to be in the right place at the right time. The result is reduced costs to all stakeholders and a greater customer satisfaction.”


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