Package theft is becoming one of the biggest loss factors that retail businesses and customers alike must combat on a daily basis.
The statistics surrounding the loss of packages not protected by buyer-based delivery protection are astounding and continue to grow each year.
Part of the problem is the number of smaller companies that do not understand just how significant these losses can be for them over a year’s time.
This 2-part article can hopefully shed some light on the impact that package loss is making on small businesses and how employing solutions, including buyer-based delivery protection service, can save everyone money and aggravation.
The Current Epidemic of Package Loss
Retail businesses across the world are currently fighting an epidemic of missing packages that is costing them an estimated $9B annually.
Over the last three to four years alone, incidents have increased exponentially each year with most businesses and customers having experienced some kind of package loss.
The losses occur in two ways:
- Packages get lost or stolen along the delivery route and never make it to their destination.
- Packages do reach the destination, get left in an unsecured location, then fall prey to porch pirates out scouring neighborhoods.
It is this type of package loss that has created an entirely new industry business sector offering buyer-based delivery protection for retailers; however, many businesses are not yet taking advantage of these services.
Yet as the losses add up and more retailers are being affected, the idea of buyer-based delivery protection is making more sense to, at the very least, protect customers’ purchases and sellers’ profit margins.
Some Statistics On Delivery Package Theft
The problem of package theft is much bigger than most business owners realize.
Whether it happens along the way or after delivery in most cases, there are some startling statistics around the loss of packages not protected by a delivery protection service to be aware of:
- Research and surveys indicate that 51% of online shoppers report not receiving at least one package within the last six months.
- Of those surveyed, 32% believe their packages were lost in the mail, 16% believe their packages were stolen, and 29% do not know why their packages did not arrive.
- From March 2020 to February 2021, the USPS reported a 29% increase in mail fraud cases within that year over the prior year. While porch pirating is typically classified under theft, it can also be considered mail fraud if someone is actively engaged in repeatedly stealing under the guise that the USPS or other delivery service guarantees the package, so the recipient can just file a claim for it, though this is not always the case.
- A startling 57% of customers who receive deliveries state that they have packages left in an unsecured open area like a front door or porch.
Package Theft Creates Huge Losses For Retail Businesses
Business competition is becoming fiercer for every retail business out there, especially considering the effect the COVID-19 pandemic has had on businesses and consumers alike.
The loss of packages not protected with buyer-based delivery protection is an expense that can be detrimental to every business, large or small.
Knowing the real statistics about package loss and some of the main reasons why it happens, retailers should be looking for solutions on how to reduce the costs associated with package loss.