Lost parcels cost online stores hundreds of millions

The delivery management software provider estimates the official damage at 540 million euros, caused by 3.72 million lost parcels. This translates to an average loss of 145 euros per parcel: 136 euros in missed revenue, 6 euros in additional customer service costs (with ‘Where is my order?’ inquiries, for example), and 3 euros in shipping costs.

Officially vs. potentially lost

Whether the total loss of 540 million euros is considered high depends on your perspective. In total, 0.06 percent of all parcels were officially registered as lost – that’s one in every 1,667 shipments.

However, Metapack notes that the share of actually lost parcels could be as high as 0.7 percent, due to parcels categorized as ‘potentially lost’ – those with no live tracking updates for more than five days. That would mean one in every 143 parcels is potentially lost.

More than inconvenience and financial drain

“Lost parcels are not just an inconvenience”, says Emma Clarke, Senior Product Director at Metapack. “They represent a significant financial drain, particularly in today’s challenging economic landscape.” On top of that, there are all kinds of losses that are not directly financial, such as declining customer loyalty, brand reputation, and consumer trust.

Clarke advises retailers to deploy targeted solutions to minimize losses across the entire delivery chain. “This includes analytics to detect anomalies and prevent fraudulent activity within warehouses, and utilizing dynamic shipping rules that leverage secure carrier services to reduce doorstep theft.”

Seamless, reliable deliveries

As online shopping continues to grow, ensuring seamless, reliable deliveries is “more critical than ever” for long-term success, according to Metapack. The company advises retailers to implement a multi-carrier strategy and to harness data-driven insights.