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Failed deliveries cost retailers £200,000 a year

To discover the real impacts of failed deliveries, PCA Predict spoke to more than 300 retailers and 2,000 online shoppers across the UK, US and Germany. They found that 73% of online shoppers in the UK have experienced late or failed deliveries in the last year, and that these failed deliveries impact retailers in more ways than one.

On average, UK retailers are paying almost £200,000 per year, perhaps unsurprising when we consider that 54% pay additional redelivery costs, 54% refund delivery charges and 38% offer their customers a discount to appease them.

But financial implications are not the only ones hitting retailers. According to the study, 57% of consumers who experience a failed delivery say they wouldn’t use a retailer again after a bad delivery experience, which can turn them completely off the brand. Also, social media posts and online reviews hit retailers hard after a failed delivery, and over 60% of retailers are noticing more customers complaining about their experiences online.

As well as this, consumers ultimately feel the buck stops with the retailer after a delivery issue. For example, 78% of online consumers expect the retailer to resolve a delivery issue, whether it is the retailers fault or not.

According to 80% of retailers though, customers don’t realise that they are in fact to blame for failed deliveries due to typos in the data entry stage of the checkout. However, even if typos are the main cause of failed deliveries, are customers truly to blame? With the right tools in place, retailers can overcome the issue to ensure that their data is accurate, and their customers are happy.

PCA Predict’s study found that 61% of customers would abandon the checkout after experiencing an issue while entering address details, indicating that the checkout is very often a cause for frustration for shoppers.

“There are tools that can help retailers resolve this issue. For example, solutions such as type-ahead address validation reduce this friction, increase data accuracy and ensure that packages can be delivered to the correct address, first time.

“As well as this, retailers should also focus on site speed, selecting a reputable courier, offering a range of delivery options and simplifying address form fields.” – Chris Boaz, Head of Marketing, PCA Predict.


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