How much does it cost to lose a parcel?
The Penn Elcom Global Parcel Theft Report 2022 has recently highlighted the huge scale of worldwide parcel theft and loss, with retailers, carriers and consumers in the UK alone losing a collective £5.6bn in 2021. But what does this mean for you?
Cost of losing a parcel for you
When your parcel is lost or stolen, your life is disrupted. The average online shopping basket as of June 2022 is £130.50, but there are hidden costs that you may have never realised.
The average cost to the individual to fix a parcel problem in the UK is £15.
Aside from the monetary cost, these tasks can take precious time away from you, particularly if you’ve already taken time off work or changed plans to ensure you were at home to receive the package in the first place. In fact, 1.4m people in the UK admitted to taking a sick day so they could wait at home for a delivery!
So your package has been lost or stolen, what do you do? To receive a refund or get a replacement, you may find that you have to contact the retailer and the courier separately to collect evidence and process your complaint. For some parcels, you may even have to contact the police.
With this in mind, one missing package costs on average £145.50. Depending on the retailer/courier, the investigation and refund process could take weeks, meaning you are without your item and without your money for a considerable amount of time.
But losing money and time is not only true for the end consumer…
Cost to fix the problem for businesses
For retailers, delivery problems can be costly and time-consuming to remedy. When it is one package, it is relatively simple to fix. When more and more parcel problems occur, issuing multiple refunds or redeliveries can severely affect cash flow and time management.
According to our report, parcel loss and theft have affected 12% of UK customers annually, meaning that potentially a tenth of consumers are now reluctant to shop online, which could result in lost sales and revenue.
The IMRG estimated that one lost package costs a business approximately £148.21, including redelivery and restocking.
Loss of sales could mean that retailers feel they have to increase prices or adopt unpopular policies like no free returns. With rising costs, retailers and customers can work together for fairer, better solutions.
Investment in the future
A bad delivery experience affects future business. Not only is there increasing global anxiety about parcel theft (20%), our report has revealed that 11% of the global population is now reluctant to make new online purchases because of parcel theft.
So, what’s the solution? There are multiple ways to ensure parcel safety and successful deliveries. For example, some couriers are now looking at investing in AI technology to provide better tracking systems and proof of delivery for the consumer.
On the other hand, simple solutions can sometimes be the best way forward, and we have one that you can implement yourself… The Penn Parcel Box is the simple and secure way to receive parcels and packages at your property.
Whether you are home or away, it is a stress-free solution to ensure that your packages come to the right place, and stay there! Our parcel boxes are resistant to changeable weather and offer increased security and an innovative anti-theft system that will deter even the most opportunistic thieves.
If you’re interested in a Penn Parcel Box or would like more information, please get in touch with our friendly team…