Peak Season Parcel Problems: Unveiling the UK’s Shipping Challenges

As the UK gears up for the peak eCommerce season, marked by holiday shopping sprees and irresistible deals, it’s vital to remember that parcel theft, damage, and loss can put a damper on the festivities. In this blog post, we’ll explore the UK-specific statistics surrounding these challenges during eCommerce’s peak season. We’ll also introduce a solution – eCommerce parcel insurance – designed to protect retailers from potential losses.

Overview of UK eCommerce Peak Season

Before delving into the data, let’s understand what eCommerce peak season means in the UK. The months leading up to Christmas witness a surge in online shopping, with Black Friday and Cyber Monday acting as major catalysts. This retail bonanza continues to grow, as eCommerce solidifies its position in the UK market.

Peak season delivery is more complex than ever: strikes, inventory issues, staff shortages, rising fuel and packaging prices and ongoing supply chain disruptions. And don’t forget that customer expectations for fast, convenient, on-time delivery and real-time delivery communication continue to grow. Throw into the mix an increasing focus amongst consumers on home delivery sustainability, and you have a maelstrom of factors that retailers have to contend with.

Here’s a look at the numbers:

• Every year up to £31.5 billion in online sales is lost from delivery complaints.1 
• A study of 8,000 European and North American consumers found that nearly three-quarters (73 percent) of consumers experienced delivery problems in the October–December 2021 holiday shopping period.2
• Deliveries were late for 26% of customers; deliveries didn’t arrive when promised for 22% and a disgruntled 16% didn’t receive their delivery at all.2
• Poor delivery performance can be catastrophic for retailers during peak season, 23% of study respondents refused to order again; nearly a quarter lost trust in both the delivery company (24%) and the retailer (21%). And 17% of consumers indicated they advised friends and family to avoid the retailer.2

Statistics on Parcel Theft in the UK

Parcel theft is a Grinch that lurks during the peak shopping season, and the UK is not exempt:

• Parcel thefts from UK doorsteps soaring, new figures reveal, and there’s been an increase in ‘Porch piracy’ put down to people returning to offices and the fallout from Royal Mail strikes.3 
• The number of claims for missing parcels jumped by 59% in the year to June compared with the previous 12 months, according to figures from Metapack.
• The huge increase in missing parcels points to the cost of living crisis causing rising levels of theft. Other forms of retail crime are also up sharply, with the British Retail Consortium estimating there were 8m “theft incidents” in shops last year, costing £953m.3

Statistics on Parcel Damage in the UK

Parcel damage can also be a substantial issue during peak eCommerce season in the UK:

• According to research from ParcelLab and YouGov, nearly nine million UK shoppers have received a damaged parcel before. 
• The study found 32% of UK shoppers report having found important parcels left outside, unprotected from the rain and 18% have previously discovered their parcels in a dustbin, 19% with a non-specified neighbour and 18% at the wrong address – even more risk for parcels to be damaged.4 
• The average ecommerce pack is dropped 17 times on route and 34% of packaging-related returns are due to product damage.5 
• Retailers must take proactive measures, such as improved packaging and carrier partnerships, to minimise damage risks during peak periods.

Statistics on Parcel Loss in the UK

Parcel loss can be a logistical headache for both UK retailers and consumers:

• The first global report on parcel theft reveals the UK has had the largest increase in compared to other countries with 12% of UK residents experiencing missing parcels.6
• This was a 5% rise on the previous 12 months — costing UK customers £320 million in missing goods
• According to Scurri’s analysis, 32% of persons polled in the UK have had a delivery lost or stolen in their lifetime, amounting to 21.5 million packages, with this figure predicted to climb unless preventive measures are implemented.7 
• This results in financial losses and customer dissatisfaction, especially when gifts don’t make it under the tree.
• Retailers can help customers by using tracking services and offering pick up delivery options instead of delivery if they’re not sure they’ll be in.

Impact on UK eCommerce Businesses

The consequences of parcel theft, damage, and loss are substantial:

• Increased operational costs, refunds, and customer support inquiries.
• Potential damage to the reputation and trust of the business

To mitigate these issues, UK retailers can invest in specialist ecommerce parcel insurance.

Introducing eCommerce Parcel Insurance for UK Retailers

To combat these challenges, retailers can consider eCommerce parcel insurance. Anansi’s specialist insurance is designed to protect retailers from financial losses caused by theft, damage, or loss of parcels. With eCommerce parcel insurance, UK retailers can:

• Receive compensation for lost or damaged items during transit.
• Minimise the financial impact of refunds and replacements for customers.
• Secure their shipments and enhance customer trust during the peak eCommerce season.

Conclusion

The festive season in the UK is a time of giving and celebration, but it’s also a time when parcels are more vulnerable to theft, damage, and loss. By being informed and proactive, both eCommerce businesses and consumers can minimise these risks. Anansi’s eCommerce parcel insurance emerges as a valuable solution to secure shipments and ensure a joyful peak shopping season.

Protect your shipments and secure your business during the peak season with eCommerce parcel insurance. Contact us today to learn more and get a quote.

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