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Failed first-time deliveries continue to hit retailers’ profits

Despite most consumers working from home and therefore being in, a quarter of businesses saw more than 1 in 10 orders fail on the first attempt at delivery in the last year, according to a new report from GBG.

The 2021 Fixing Failed Deliveries report suggests the fault often is with incomplete data and that this is costing retailers dearly. Although 69% of retailers said that average online order values had increased since the beginning of the pandemic almost the same amount (68%) said that failed or late deliveries added significant costs to their operations. The survey showed that three-quarters (76%) of consumers surveyed said that parcels had arrived late.

The research revealed that retailers offer a range of tactics to make up for delayed deliveries. 53% try to redeliver with 36% paying any additional courier charge, 41% offer a refund, and 34% apply a discount.

It also suggested that a third of study respondents either don’t verify address data or leave it up to the courier to check details. With inaccurate or incomplete addresses 41% of deliveries are delayed, and 39% fail.

Matthew Furneaux – ecommerce expert and director, Location Intelligence at GBG, said: “Users are demanding a seamless experience from logging on, to checking out, through to receiving their final delivery, and retailers are missing out by only focusing on the online experience while neglecting the final mile. Brand loyalty is increasingly tied to these touchpoints, as consumers are excited by both their order and its arrival. Businesses need to make sure they’re optimising every stage in the digital journey or run the risk of losing trust, customers, and revenue.”

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