Missed deliveries at fault over significant losses for UK e-retailers

It has been reported by industry body, IMRG that UK retailers are set to lose out on £771million in lost business this year due to missed deliveries. With the exclusion of smaller e-commerce outlets, such as eBay, the value of missed deliveries has fallen to approximately £473million during 2014.

As the rise e-commerce volumes is being taken into consideration, the trade association has said that the specific costs in relation with delivery failures has fallen by almost 50% over the past 2 years. IMRG has said it believes the cost of missed deliveries has fallen due to recent innovation in the e-retail delivery business.

Head of e-logistics for IMRG, Andrew Starkey, has said: “Recent innovations in e-retail delivery have already reduced this cost and provide shoppers with more choice, more information about when and where they can expect their deliveries.” He also added: “Giving the customer the ability to full engage in the delivery process allows them to make more informed decisions about the service they want and…help manage their ‘final mile’, co-operating with the delivery company to be in the right place at the right time. The result is reduced costs to all stakeholders and a greater customer satisfaction.”

The fall in cost of missed deliveries is reported to have been helped by the introduction of, and increasingly popular, “Click and Collect” services within the UK. The UK government recently announced earlier this month its plans to streamline the rules for retailers wanting to plan and set up collection lockers within their own premises. The government is said to be passing new regulations which will enable retailers to build click and collect type facilities within their own sites by 20% without the need to require planning permission or permits.

Penny Mordaunt, Communities Minister has said: “Click and collect is set to be the next big thing on the high street, as discerning online shoppers look to the convenience of the high street as much as their computer screens.