New data suggests increasing pressure on retailers to offer greater protection for goods purchased online, as a significant number of Australian consumers report issues with lost or damaged parcels.
Research commissioned by NTI has revealed that more than two-thirds of online shoppers in Australia have experienced delivery problems, with nearly half encountering such issues in the past year.
The survey’s findings were published as the retail sector enters its busiest period, with major sales events like Black Friday, Cyber Monday, and Christmas shopping in full swing.
NTI Parcel Protect spokesperson Nick Aiello said the study examined common challenges faced by online shoppers after their purchases were dispatched.
He noted that 69% of respondents have dealt with parcels being lost or damaged, and 32% have experienced such problems multiple times.
The report highlighted generational differences, with Millennials and Gen Z shoppers particularly affected.
In the past 12 months, 60% of Millennials and 61% of Gen Z reported incidents of lost or damaged parcels. Across all age groups, one in nine had multiple issues over the same period.
Retailers face potential long-term consequences from these delivery failures. According to the survey, one in 10 Australians who experienced a lost or damaged parcel said they would not shop with the retailer again.
“How retailers respond when something goes wrong can make or break a relationship with the consumer,” Aiello said.
The study also found strong consumer interest in improved shipping protections. Three-quarters of respondents said they would be more likely to buy from retailers that included coverage for goods lost, stolen, or damaged during shipping.
“There’s a level of frustration with how lost or damaged parcels are handled, and businesses are being encouraged to up their game when it comes to returns and refunds and offering cover for goods,” Aiello said.
Additionally, over 90% see value in shipping insurance being bundled into the purchase price, especially for items costing more than $200, while 54% consider it valuable for goods worth over $100.
Aiello said that shipping insurance may soon become a deciding factor for consumers, akin to the current demand for free shipping.
NTI recently launched a new guide aimed at reducing risks associated with container shipping and bolstering international supply chain safety.
The “CoRsafe Safe Container Loading and Transport Guide” was developed in collaboration with the Container Transport Alliance Australia (CTAA).
The guide provides Australian businesses with tools to ensure that international suppliers meet safety standards for container packing. This initiative addresses a critical issue, as data shows that improper or incorrect packing accounts for half of container-related incidents during transport.
The guide includes detailed information on topics such as Chain of Responsibility (CoR) laws in Australia and New Zealand, load preparation, weight limits, and pest and water damage prevention.
A checklist from the Cargo Integrity Group is also included to assist shippers and packers with best practices.
