Parcel Theft is Sweeping the Globe
Parcel Theft is Sweeping the Globe. Reduce Your Risk with Ship-Safely.
One in ten people are reluctant to shop online due to fear of parcel theft, according to a recent survey by YouGov, a British market research firm.
The survey, commissioned by Penn Elcom in May 2022, sampled 2000 random consumers in each market of the USA, UK, Canada, Australia, and the UAE.
Globally, between May 2021 and April 2022, an estimated record high of more than one billion packages went missing, corresponding to a staggering cost of over $38.8 billion.
Nearly 10% of surveyed individuals experienced at least one lost or stolen parcel during the year. This represents almost 1% of the 131 billion parcels shipped annually around the world.
One Third of Consumers Suffer Parcel Loss or Theft
Despite measures to reduce a post-COVID surge in failed deliveries, these losses still amounted to a 2% increase (155 million parcels) compared to the prior 12 months.
In the USA alone, more than 42 million packages were lost or stolen, affecting 13% of Americans, and costing consumers an estimated $1.8 billion. The report also revealed that 36% of Americans have experienced at least one missing parcel in their lifetime.
The popularity of online shopping, accelerated by the COVID-19 lockdowns, means couriers worldwide are under immense pressure. And opportunistic thieves are taking advantage of packages left on doorsteps, while professional criminals often tail delivery vans and steal parcels as soon as they’re dropped off.
And each time a parcel delivery fails, the customer is discouraged from buying online again.
According to Google Trends, searches for 'lost parcel' have surged over the past decade, as shoppers increasingly order online, especially for seasonal and holiday purchases.
But the study found that one in five people are anxious about parcel theft, and one in ten are reluctant to buy online – presenting a significant financial hit to retailers.
One Fifth of Large Packages Arrive Damaged
Loss and theft are not the only issues experienced by modern consumers.
A report by uShip revealed that 21% of Americans who purchased large items were disappointed when their parcel arrived damaged.
While in transit, packages can easily suffer damage due to improper packaging or handling, infestation by vermin or insects, and exposure to the elements. Oversized products like exercise machines, beds, and sofas are particularly prone to mishap.
And although consumers may in some cases be entitled to a refund, one in ten say they had to fight with customer service to resolve their issues – a time consuming and frustrating process for both parties.
Protect Yourself from Parcel Loss, Theft, and Damage
Despite the risks, only 12% of people have looked into possible loss, theft, and damage protection measures, according to the YouGov survey.
Some consumers report taking measures like specifying a hiding place for deliveries, having parcels delivered to a neighbour when they won’t be at home, or installing motion sensor lights and CCTV cameras.
But these solutions can be inconvenient, unreliable, and expensive. Even if the CCTV system captures footage of the theft, there’s no guarantee the item will be recovered. And in any case, this doesn’t help with parcels that go missing in transit.
A more reliable option is for retailers to make insurance available on all online purchases.
Package delivery insurance can offer total peace of mind for both the consumer and the retailer, by empowering customers to activate purchase protection at checkout.
This improves the customer experience while also protecting the vendor’s reputation.
How Ship-Safely Can Help
Ship-Safely integrates seamlessly with existing checkout flows, giving customers the option to select delivery insurance to cover any potential damage, loss, or theft.
In the event of a claim, Ship-Safely pays for the affected goods by reordering them through your store within 48 hours, giving you an additional sale when the claim is settled.
Ship-Safely personally manages all claim correspondence, in consultation with both parties.
The service is completely free for retailers, with no initial or ongoing costs, and the API can be downloaded and installed with just a few clicks.
Furthermore, Ship-Safely provides a new revenue stream for retailers, since store owners receive a commission on the insurance cover purchased by the customer.
Ship-Safely is a winning solution for both the buyer and the seller.
The service offers improved cart conversion and a new revenue stream for the retailer, plus total peace of mind for the consumer. It also takes the burden of insurance away from the store owner, allowing them to focus on their core business.
To learn more about how Ship-Safely can reduce your risk and boost your revenue, contact us today at support@ship-safely.com.