3 min read

The Rising Cost of Failed Deliveries

By Gina Anderson on Jun 29, 2021 2:42:00 PM

Topics: Last Mile

The rapid increase in e-commerce has placed extra pressure on the supply chain and especially logistics providers. An exceptional delivery experience can turn a regular shopper into a brand ambassador. But what happens when a delivery experience is negative? Let’s explore the costs of failed deliveries—and how to mitigate them.

Lost Customers

Customers demand shipping that is fast, free, and accompanied by features like real-time tracking. Speedy shipping pioneer Amazon is a major contributor to this phenomenon, with 88% of shoppers admitting the retailer has increased their expectations of other e-commerce providers. These expectations are so high that after a bad shipping experience, 56% of customers may not return, according to Accenture. Unsatisfied customers may also spread negative word-of-mouth to their circles both face-to-face and online, magnifying the loss even more. Brands must understand that just one bad delivery can have a ripple effect of multiple lost customers.

Deflated Brand Image

Shoppers have little mercy when it comes to failed deliveries. 70% of consumers report that an unsatisfactory shipping or delivery experience decreases their view of a brand, even if the problem was the carrier’s fault. After a bad delivery, 12% of customers say they would leave a negative review online. Considering that more than 9 in 10 shoppers consult reviews before making e-commerce purchases, a slew of negative comments has the potential to destroy perceptions of a brand.

Lower Profits

Ultimately, failed deliveries impact your bottom line. According to a survey by Loqate, first-time deliveries are unsuccessful 8% of the time, costing retailers an average of $17.20 for each delivery. With e-commerce expected to grow significantly in the years to come, this number is sure to rise. A habit of mishandling packages can have a drastic impact on your business.


The Solution

GEODIS City Delivery has the answer to delight your customers. More than a delivery provider, GEODIS City Delivery offers full-service supply chain optimization to improve the shipping experience every step of the way.

GEODIS City Delivery accomplishes last-mile services through a hyper-local delivery network that bypasses the national and regional carriers. Utilizing a more direct injection of your packages in our network, we deliver a better customer experience, less handling, better transparency, and communication in real-time. That real-time visibility is because GEODIS Zipline, our smart technology application, consolidates multiple forms of delivery options like same day, next day, and scheduled deliveries in which our contractors, local delivery partners, and even your own store employees make deliveries. With GEODIS Zipline, you can see all orders and their status on a single platform. Features like real-time tracking, progress updates, delivery verifications, and SMS messages ensure that failed deliveries are better managed and even avoided altogether when deploying this technology as part of your last mile strategy.

Crowdsourced delivery services often allow little control over contractors’ last-mile process, but GEODIS Zipline drivers are specially trained and able to customize services based on clients’ unique needs. If assistance is needed, the qualified Driver Support Team is only a call or SMS message away, ready to ensure parcels are delivered without error. And if your customers expect the extra mile, GEODIS City Delivery is ready to go above and beyond with white glove services that offer a personal touch sure to elevate brand image.

Next year, e-commerce is expected to grow even more, making up ⅕ of overall retail sales. With so much at stake, you can’t afford to leave deliveries to just any courier. You need GEODIS City Delivery—not just a logistics provider but your growth partner.

Gina Anderson

Written by Gina Anderson

Vice President of Solutions & Growth. Gina Manis Anderson is an experienced entrepreneur, executive and logistics expert who’s spent more than 30 years helping Fortune 500 companies optimize their supply chains. A skilled leader and influencer, Gina has earned the respect of a large professional network through her businesses successes and passionate leadership.