However, the total would be GBP 473 million for the three main industry stakeholder groups (consumer, retail and carrier), should marketplace deliveries be left aside.
It is estimated that each failed delivery costs the 3 stakeholder groups GBP 5.74, adding on GBP 0.68 of cost to every delivery made to UK consumers.
Additionally, the study points out 6 delivery failure scenarios, such as failed first delivery that requires re-delivery, failed first delivery resolved when customer collects, late delivery, lost order with replacement sent, lost order resulting in loss of customer goodwill, and undelivered order that is returned to sender.
Nevertheless, the costs are worth 50% lower as compared to 2013 and this is a result of logistics development. These innovations include pre-delivery alerts for the customer, click-and-collect or pick up drop off networks for easier delivery, improved GPS assisted tracking of orders and the ability for customers to give specific delivery instructions.
The data examined up to 160 million orders and deliveries from over 220 different e-tailers and purchases were valued at over GBP 14 billion per year.
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