A quarter of businesses experience 10% of orders with first attempt failed delivery. The average cost of a failed delivery reaches $17.2 in the U.S. and £11.6 in the UK, significantly affecting margins for low-value product categories like apparel, accessories, and health/beauty items.
Key Insight
Most brands operate at a loss on initial purchases, making positive first delivery experiences critical for driving repeat sales and long-term profitability.
Why Do Packages Fail to Deliver?
Common reasons for failed deliveries include:
- Delivery recalled by sender
- Package not collected from parcel locker/shop in time
- Customer refused acceptance
- Customer unable or unwilling to pay cash on delivery
- Unsuccessful customs processing
- Incomplete or inaccurate address
- Package damaged beyond repair
- Force majeure events (severe weather)
- Recipient unavailable when signature required
- Driver unable to locate secure placement spot
How to Manage Failed Deliveries
Five preventative steps to reduce failed deliveries:
1. Accurate Delivery Predictions
Display realistic timelines at checkout so customers can plan accordingly. Setting proper expectations from the start reduces the likelihood of missed deliveries.
2. Click & Collect Options
Offer "buy online, pick up in store" or curbside alternatives so customers can collect packages on their schedule.
3. Real-Time Tracking
Keep customers informed of delivery estimate changes so they can adjust their plans and be available for delivery.
4. In-Flight Rerouting
Provide easy access to carrier rerouting tools on tracking pages so customers can redirect packages when plans change.
5. Strategic Post-Purchase Communications
Include order confirmations with full delivery details, out-for-delivery notices, and SMS alert options to keep customers informed at every stage.
How Can Retailers Fix Failed Deliveries for Customers?
Even with prevention efforts, failures occur. Here are recommended solutions:
Unsuccessful Delivery Alerts
Communicate next steps including re-attempt timelines, redirect options, or pickup location rerouting with reminder messages.
Customer Service Watchlists
Enable agents to view tracking information for proactive problem-solving and VIP outreach for rescheduling or expedited replacements.
Loss/Damage Journeys
Create automated flows offering refunds, discounts, or replacement packages with claims processing initiation.
With these strategies, e-commerce retailers can prevent delivery failures, reduce costs, and enhance customer experiences. The key is to combine proactive prevention with responsive recovery -- ensuring that even when things go wrong, the customer feels supported and valued.
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