New data from Metapack reveals that UK and European retailers suffered an estimated £464 million in lost parcel revenue during the peak shopping season (September – December). While only 0.06% of parcels were officially declared lost, this still amounts to approximately 3.72 million missing items over the four-month period. As well as 0.06% of parcels being officially declared by carriers as ‘lost’, the number of actually lost parcels could be as high as 0.7% due to parcels categorised as ‘potentially lost’, due to no live tracking updates for more than 5 days.
The financial impact is substantial, with retailers losing an estimated £435 million in revenue, incurring £9 million in shipping costs, and facing £20.3 million in additional customer service expenses linked to WISMO (“Where Is My Order?”) enquiries. On average, each lost parcel costs retailers around £125.
Lost Parcels
However, for retailers, lost parcels not only result in financial losses but also damage consumer trust and brand reputation. When customers experience missing deliveries, frustration increases, and many are less likely to shop with the same retailer again. In an increasingly competitive e-commerce landscape, meeting customer expectations is more important than ever. According to Metapack’s annual Ecommerce Delivery Benchmark Report, nearly half (49.5%) of UK consumers say their expectations for online shopping have increased compared to last year. Ensuring reliable deliveries and minimising lost parcels is crucial for maintaining customer loyalty.
Emma Clarke, Senior Product Director at Metapack, emphasised the need for retailers to tackle parcel theft head-on, 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 key strategy is identifying fraud hotspots and integrating advanced solutions such as Metapack Intelligence to mitigate financial exposure. Retailers that harness data tools can pinpoint where fraud occurs in the delivery journey and take proactive measures to prevent losses. The British Retail Consortium has underscored the scale of the issue, stating that theft, including porch piracy, costs retailers more than £2.2 billion annually. This highlights the necessity of investing in robust fraud detection and prevention strategies to safeguard both revenue and customer trust.
Another effective approach to optimising delivery operations is implementing a multi-carrier strategy. This involves leveraging multiple carriers based on their network strength and performance in different regions. By utilising the most efficient carrier for each location, retailers can enhance delivery reliability, reduce missed deliveries, and minimise the risk of doorstep parcel theft. When consumers receive accurate delivery timeframes, they can make proper arrangements, ensuring successful deliveries. Despite its advantages, only 1 in 4 retailers currently adopt a multi-carrier strategy. However, those that do experience, on average, a 10% reduction in delivery delays, demonstrating its effectiveness in improving the overall customer experience.
By adopting smarter delivery solutions such as a multi-carrier strategy and harnessing data-driven insights, retailers can significantly reduce losses, improve operational efficiency, and elevate the overall customer experience. As online shopping continues to grow, ensuring seamless, reliable deliveries is more critical than ever for long-term success.
Sources
(1,2,4) Metapack Production Data
