UK and European retailers suffered an estimated £464m in lost parcel revenue during the peak shopping season between September and December last year, according to the latest research from delivery management software expert Metapack.
While only 0.06% of parcels were officially declared lost, Metapack has calculated that this amounts to approximately 3.72 million missing items over the four-month period.
As well as 0.06% of parcels being officially declared by carriers as ‘lost’, the number of actually lost parcels could be as high as 0.7% due to parcels categorised as ‘potentially lost’, due to no live tracking updates for more than five days, the research found.
The financial impact is substantial, Metapack warned this week, with retailers losing an estimated £435m in revenue, incurring £9m in shipping costs, and facing £20.3m in additional customer service expenses linked to WISMO (Where Is My Order?) enquiries. On average, each lost parcel costs retailers around £125.
Lost parcels not only result in financial losses but also damage consumer trust and brand reputation, said the report, adding that when customers experience missing deliveries, frustration increases, and many are less likely to shop with the same retailer again.
According to Metapack’s annual Ecommerce Delivery Benchmark Report, nearly half (49.5%) of UK consumers say their expectations for online shopping have increased compared to last year. Ensuring reliable deliveries and minimising lost parcels is crucial for maintaining customer loyalty.
Emma Clarke, Metapack senior product director, emphasised the need for retailers to tackle parcel theft head-on. “Lost parcels aren’t just an inconvenience—they represent a significant financial drain, particularly in today’s challenging economic landscape. Retailers must deploy targeted solutions to minimise losses across the entire delivery chain,” she said.
“This includes analytics to detect anomalies and prevent fraudulent activity within warehouses and utilising dynamic shipping rules that leverage secure carrier services to reduce doorstep theft. Not only does this protect revenue, but it also strengthens customer trust and loyalty in an increasingly competitive market,” Clarke added.
Metapack recommends that retailers harness data tools, such as Metapack Intelligence, which can pinpoint where fraud occurs in the delivery journey enabling businesses to take proactive measures to prevent losses.
The British Retail Consortium has underscored the scale of the issue, stating that theft, including porch piracy, costs retailers more than £2.2bn annually.
This highlights the necessity of investing in robust fraud detection and prevention strategies to safeguard both revenue and customer trust, Metapack added.
Another effective approach it recommends to retailers is to implement a multi-carrier strategy, allowing businesses to leverage multiple carriers based on their network strength and performance in different regions.
By utilising the most efficient carrier for each location, retailers can enhance delivery reliability, reduce missed deliveries, and minimise the risk of doorstep parcel theft.
When consumers receive accurate delivery timeframes, they can make proper arrangements, ensuring successful deliveries. Despite its advantages, only one in four retailers currently adopt a multi-carrier strategy.
However, those retailers that do adopt this strategy experience, on average, a 10% reduction in delivery delays, demonstrating its effectiveness in improving the overall customer experience, the research revealed.
“By adopting smarter delivery solutions such as a multi-carrier strategy and harnessing data-driven insights, retailers can significantly reduce losses, improve operational efficiency, and elevate the overall customer experience.
“As online shopping continues to grow, ensuring seamless, reliable deliveries is more critical than ever for long-term success,” the report concluded.
