Best Practices for Handling Failed Delivery Attempts in E-commerce

The convenience of online shopping and home deliveries has changed how we shop. This experience can sometimes be spoiled by failed delivery attempts. Statistics show that upto 20% of the e-commerce packages are not delivered on first attempt. This not only spoils the joy of receiving a package but leads to frustration and confusion for the consumers and businesses. Several consumers report having experienced failed deliveries at least once with their orders. Many also stated they would avoid ordering from a business again after a poor experience. In this blog, let’s understand the common causes and implications of failed deliveries and the best practices to improve the logistics operations and the customer satisfaction in today’s customer centric market.

Undelivered packages frustrate both the customers and businesses. Identifying the causes of delivery failures is crucial for improving the service and customer satisfaction. Below are some main reasons:

Recipient unavailability: One of the biggest cause of failed deliveries is when the recipient is not present at the delivery location. This leads to delays as consumers may need to reschedule or cancel the delivery. To prevent this the customers can track their shipments, ensure someone is available or opt for alternative delivery options. 

Incorrect delivery address: Delivery failures can occur due to incorrect or incomplete addresses. Missing house numbers, wrong street names or typos may send the delivery staff to wrong location. Restricted access in the gated communities or secured buildings can also lead to failed attempts. Customers should verify their address during the checkout to prevent these problems.

Delivery vehicle issues: Vehicle breakdowns or accidents can also lead to delivery delays. Time to diagnose and fix these issues can vary and cause unpredictable delays. To reduce these risks businesses should have a strong fleet management plan. This should include regular maintenance checks, driver training and real time vehicle tracking. 

Weather conditions: Extreme weather like heavy rain, snowstorms, hurricanes or floods can block routes and make the deliveries in certain areas difficult. In these situations, deliveries can get delayed or the drivers might fail to deliver the products. Businesses should consider weather during route planning. 

High delivery volumes: During the peak shopping seasons like holidays or sales, delivery services handle a high volume of packages. This can cause logistical challenges and make handling failed deliveries even more complex. Businesses can ease this by planning ahead and offering flexible shipping options during the busy shopping periods. 

Failed delivery attempts can hurt the operational efficiency, brand reputation and customer loyalty. Businesses should have an effective failed delivery management in place to enhance the delivery operations and the customer satisfaction. Here are some key impacts:

Increased costs: Failed deliveries can cause major financial losses for the e-commerce businesses. Each failed delivery attempt adds costs like shipping fees, handling of returns and possible refunds. In the U.S., these costs average about $17.2 per failed delivery that can heavily impact the profit margins specially for the low value items. 

Customer dissatisfaction: Failed deliveries tend to frustrate the customers. Nearly 67% of the consumers face issues with the delivery of products. This leads to negative reviews and hurt a brand's image. A single failed delivery can cause major damage. According to a research 24% of the customers say that they would not order from a retailer again after bad delivery experience. 

Operational hassles: Undelivered packages create a logistical burden on the businesses leading to higher costs and operational inefficiencies. Retailers must handle redeliveries which can complicate the inventory management and impact the resources available for other critical areas of the business.

Impact on brand reputation: Missed deliveries can harm a brand’s reputation. A bad experience can lead to losing customers and make it difficult to attract the new ones. Failed deliveries often result in negative reviews and loss of trust. These can discourage the potential buyers and damage the brand’s name in the market.

Increased return rates: In markets like India options such as COD often lead to higher returns when the customers refuse deliveries or change their minds. This increases the logistical challenges and affects the profitability as the retailers have to cover the costs of the returned packages. 

Environmental concerns: Delivery failures contribute towards the environmental issues by increasing the CO2 emissions from each redelivery. Each failed attempt adds to the carbon footprint of the logistics operations. This is a matter of concern for the eco-conscious consumers and stakeholders.

Reducing failed delivery attempts is key to improving the customer satisfaction and operational efficiency. Here are some best e-commerce delivery practices to achieve this:

Real time visibility: With FarEye Track businesses gain real time visibility into the entire delivery process. This lets the businesses monitor shipments from order placement to the final delivery. Accurate updates and ETAs help manage the customer expectations and address delays before they lead to failed deliveries.

Route optimization: FarEye's platform uses advanced algorithms and machine learning for route planning. It helps ensure the drivers follow the most efficient routes. This reduces travel time and increases chances of on-time deliveries. By adjusting routes based on real time traffic and other factors businesses can lower the risk of failed delivery attempts.

Delivery options: Providing the customers with multiple delivery options at checkout is essential. FarEye's last mile delivery platform allows the businesses to offer flexible delivery choices. This enhances the customer satisfaction and decreases the missed delivery attempts. Meeting diverse customer needs and preferences ensures a higher chance of delivery success.

Customer communication: Effective communication is vital for successful deliveries. FarEye's platform enables customer engagement by providing timely notifications about the order status changes or delays. Keeping the customers informed helps the businesses build trust and loyalty. This reduces the chances of failed deliveries caused by unavailability at the time of delivery.

Data driven insights: Using analytics from FarEye’s platform enables the businesses to track the operational data and identify the trends in delivery performance. Analyzing this data helps the brands make informed decisions to enhance the logistics strategies, manage recurring issues and enhance the overall delivery efficiency.

Integration with carrier networks: FarEye's wide carrier network offers various delivery options and capabilities. By integrating with multiple carriers businesses can flexibly allocate the orders based on performance metrics improving the service levels and reducing the risks linked to failed deliveries.