Leader's Digest

What do Failed Deliveries Cost Your Business?

3 Min Read

What do Failed Deliveries Cost Your Business?
What do Failed Deliveries Cost Your Business?

It doesn’t matter what industry you are in, B2C, B2B, parcel or big box, there will always be circumstances that lead to a delivery failing.

What is the cost?

There is the obvious cost – the cost of re-delivery, but what are the additional costs associated with that failed delivery?

  • Reverse logistics fees

  • Employee time spent on:

    • “Where’s my order?” calls

    • Contacting the customer to rebook

    • Warehouse/Dispatch team rearranging schedules to accommodate the re-delivery.

  • Refunding a delivery charge/ apology discounts

  • Impact on brand reputation

  • Customer dissatisfaction

  • Negative reviews

Poor delivery damages consumers’ perceptions

23% of consumers have not ordered from the retailer again, 21% lost trust in the retailer and 16% told friend and families to avoid the retalier due to a poor delivery experience.

Source – Descartes Research Report: Ecommerce: Is Retailer Fulfillment and Delivery Performance Keeping Up With Sales Growth?

The key to minimising failed deliveries and therefore minimising the financial impact to your business, along with the potential damage to your brand, is understanding why deliveries fail.

Related reading: The Hidden Margin Leak in Last-Mile Delivery, Anatomy of a Perfect Drop: Minimising Failed Deliveries in the Steel and Construction Industry and What To Budget for Delivery Management Software

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Get Started with Radaro

Last mile delivery software designed for complex, real-world logistics. 

What do Failed Deliveries Cost Your Business?

It doesn’t matter what industry you are in, B2C, B2B, parcel or big box, there will always be circumstances that lead to a delivery failing.

What is the cost?

There is the obvious cost – the cost of re-delivery, but what are the additional costs associated with that failed delivery?

  • Reverse logistics fees

  • Employee time spent on:

    • “Where’s my order?” calls

    • Contacting the customer to rebook

    • Warehouse/Dispatch team rearranging schedules to accommodate the re-delivery.

  • Refunding a delivery charge/ apology discounts

  • Impact on brand reputation

  • Customer dissatisfaction

  • Negative reviews

Poor delivery damages consumers’ perceptions

23% of consumers have not ordered from the retailer again, 21% lost trust in the retailer and 16% told friend and families to avoid the retalier due to a poor delivery experience.

Source – Descartes Research Report: Ecommerce: Is Retailer Fulfillment and Delivery Performance Keeping Up With Sales Growth?

The key to minimising failed deliveries and therefore minimising the financial impact to your business, along with the potential damage to your brand, is understanding why deliveries fail.

Related reading: The Hidden Margin Leak in Last-Mile Delivery, Anatomy of a Perfect Drop: Minimising Failed Deliveries in the Steel and Construction Industry and What To Budget for Delivery Management Software

Subscribe to our Newsletter

Get Started with Radaro

Last mile delivery software designed for complex, real-world logistics. 

Take Control of Your Last Mile

Discover what Radaro can do for you

Take Control of Your Last Mile

Discover what Radaro can do for you

Take Control of Your Last Mile

Discover what Radaro can do for you

Take Control of Your Last Mile

Discover what Radaro can do for you