Failed deliveries are one of the most costly mistakes retailers can make. The last mile is already the most expensive part of the supply chain, but missing customers’ delivery expectations — either by failing to deliver the product at all, or by missing the agreed-upon delivery deadline — can cost your business more in customer loyalty and revenue.
With money and reputation on the line, retailers need to make final mile delivery success a priority, especially ahead of the hectic peak season when consumer sentiment is riding high. With effective planning that keeps your entire operation nimble and ready to meet demand as it happens, companies can keep customers happy.
How much do missed and failed deliveries cost?
Consumer research shows that missed or failed deliveries can be expensive mistakes. Last-mile delivery can account for more than half of total shipping costs. And one study found that 8% of domestic deliveries fail on the first attempt, costing retailers $17.20 per order on average.
Brand reputation takes a hit as well. Consumers are unlikely to stay quiet about the inconvenience of missed deliveries. When asked how they would respond to a negative delivery experience (which 81% of consumers had reported in the previous 12 months), 59% of respondents said they would contact the retailer to complain, Metapack explained in its Ecommerce Delivery Benchmark Report 2021. Meanwhile, 36% would switch retailers for their next purchase, 29% would leave a negative review and 6% would post about their experience on social media.
Read on to discover three common failed delivery scenarios, plus tips on how to solve them successfully.
3 solutions to avoid failed deliveries
The last mile is filled with obstacles to successful deliveries, but that doesn’t mean your business has to suffer from those missed connections. Below, we explain a few common causes of failed deliveries and how your team can proactively avoid them to ensure successful fulfillment with every order.
Problem: Incomplete delivery or wrong items delivered
Solution: Start at the store.
Some deliveries seem to go like clockwork, arriving at a destination on time. But it’s not a successful delivery if the wrong item is delivered, items are missing from the order or the order is delivered to the wrong customer. And when these issues affect holiday gift orders, consumers do not respond well. Fortunately, these mix-ups are preventable when retailers put processes in place to guarantee accurate order picking and smooth store-to-driver hand-off. Start by barcoding each order so in-store team members can easily match the packaged order with the appropriate driver. Roadie’s built-in barcode scanning feature makes this easy. Next, ensure that dedicated pick-up counters or loading areas are available for delivery drivers and clearly marked for easy access. These steps help ensure that orders are efficiently handed off to drivers and make it to their destinations on time.
Problem: Incorrect (or misread) address
Solution: Take advantage of delivery tracking features.
The most common reasons for missed deliveries are human errors related to addresses. Senders may enter addresses into the system incorrectly, and rural areas can also be difficult to navigate with spotty GPS.
Thankfully, it’s possible to avoid these problems, and the first step is to take advantage of API integration. By integrating delivery with retail-level order management systems, fields like customer-entered addresses would populate automatically on the delivery end — which reduces human errors when creating the deliveries. Technology like this is baked right into the Roadie app, along with mapping capabilities all the way down to latitude and longitude points, all of which ensure drivers have the most accurate delivery information
Customers usually know how to give directions to delivery drivers — especially if they live in hard-to-find areas. Senders can also add these turn-by-turn directions to their delivery instructions for those locations, while features like photographic delivery confirmation let recipients confirm whether a “missing” delivery was just overlooked or possibly left at the side door instead of on the front porch
Problem: Inaccessible property or mailbox
Solution: Communicate and set expectations with recipients.
Roadie’s flexible network of passenger vehicles makes delivering products of any size easy — even big and bulky items — no matter the destination. But some deliveries are harder than others. With heavy traffic and parking restrictions, densely populated areas can be a delivery nightmare, especially during the holiday hustle. Gated buildings and communities can also be hard to access if drivers aren’t placed on a list of approved visitors.
The answer to addressing these challenges is clear communication. When you schedule your deliveries in the Roadie app, make sure to thoroughly communicate with recipients about accessibility requirements to eliminate confusion and surprises. Be sure to ask for gate codes, parking instructions and check-in procedures and post relevant information into the delivery notes so drivers can see them. Enabling real-time tracking also lets the end customer monitor delivery progress and respond quickly if drivers reach out with questions. A high level of customer awareness about the location and timing of their delivery is also critical for orders requiring the end customer’s signature.
Capitalize on order accuracy even during peak season
Last-mile delivery may be the final point of contact between a sender and a recipient, but smart retailers make it their first priority. By acting on best practices for delivery success and choosing a delivery solution with the tools to make it happen, retailers can overcome any delivery challenge that comes their way.
With crowdsourced delivery using Roadie, retailers get the benefit of high-tech API features that allow for delivery transparency and thorough communication. Plus, with more than 200,000 drivers on Roadie’s platform — a network that reaches up to 90% of U.S. households — retailers have the flexibility to increase deliveries as demand grows, all while being able to promise on-time arrivals no matter where customers are located. During a hectic peak season, these benefits let retailers keep their eyes on each order, with the confidence that the deliveries will reach their destinations seamlessly and accurately, preserving your bottom line and your reputation.
Better visibility can help make that process even easier for retailers. Read on to learn why consumers want order visibility from purchase to drop off and why a crowdsourced delivery platform is the answer.
