UK retailers face substantial losses from missing parcels

New data from Metapack estimates that UK and European retailers lost approximately GBP £464 million in parcel revenue during the peak shopping season from September to December.

The figures reveal that only 0.06% of parcels were officially declared lost, which still translates to roughly 3.72 million missing items within the four-month period. However, the number of actually lost parcels could be considerably higher, according to Metapack, as parcels with no live tracking updates for more than five days are classified as 'potentially lost'. This pushes the potential loss rate to as high as 0.7%.

In financial terms, this represents an estimated GBP £435 million in lost revenue for retailers, GBP £9 million in shipping costs, and GBP £20.3 million in customer service expenses arising from 'Where Is My Order?' (WISMO) enquiries. The average cost to retailers for each lost parcel is placed at around GBP £125.

The loss of parcels not only brings direct financial consequences but also affects customer trust and the reputation of retail brands. Metapack's annual Ecommerce Delivery Benchmark Report found that nearly half (49.5%) of UK consumers report having higher expectations for online shopping compared to the previous year.

Emma Clarke, Senior Product Director at Metapack, highlighted the seriousness of the issue by stating: "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. 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."

One of the strategies discussed involves pinpointing fraud hotspots and using advanced analytics such as Metapack Intelligence to assess risk throughout the delivery process. With such tools, retailers can identify where fraudulent activity or theft is most likely to happen and implement preventative steps. The British Retail Consortium has also drawn attention to the broader issue, indicating that overall theft — including 'porch piracy', which refers to parcels stolen after being delivered to the doorstep — costs UK retailers upwards of GBP £2.2 billion annually.

Another recommended approach is the adoption of a multi-carrier delivery strategy. This method involves selecting from multiple shipping carriers based on each provider's regional strengths and reliability. By allocating deliveries to the most suitable carrier for each location, retailers may reduce the chances of missed or stolen parcels and improve delivery reliability.

Clear communication of delivery timeframes enables customers to make necessary arrangements to receive their orders, which can further limit losses from missed deliveries or theft. Despite its potential, only one in four retailers currently make use of a multi-carrier strategy. Those who have adopted this practice report an average reduction of 10% in delivery delays.

The data suggests that, by deploying analytics-based solutions and rethinking delivery operations, retailers could see measurable improvements in loss prevention, operational efficiency, and ultimately, customer satisfaction. The ongoing increase in consumer expectations for online shopping experience underscores the need for retailers to ensure timely and reliable deliveries to remain competitive.