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
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.
What causes deliveries to fail?
The most common reasons leading to delivery failures are:
- Address error
- Not home
- Incorrect stock
- Damaged goods
- No access or Safety issue