Damaged, delayed, or simply gone missing: parcels failing to reach their destination in one piece can be frustrating for both you and the consumer. Replacements and refunds can have a profound impact on profit margins, especially when those margins are already squeezed. 

In 2024, over 4.2 billion parcels were delivered in the UK, and of those one per cent went missing or were delivered in a damaged state. One per cent may not sound like much, but it amounts to 42 million packages and many millions of frustrated and disappointed customers. 

Figures from Citizens Advice show that 37 per cent of consumers faced issues with their most recent parcel delivery. That amounts to 15 million people. Among those, 24 per cent of the parcels were left in an insecure location, leaving them open to possible theft or damage. 

Each damaged or missing parcel means a company has to shell out for repair, replacement or refund. While these can be claimed back with courier insurance, often the process is complex and long-winded. 

So what can online retailers do to ensure that customers get their purchases delivered right the first time?

Parcel tracking 

Invented by FedEx in the 1970s, parcel tracking is now far more advanced than a simple barcode system. Web-based tracking can show a driver’s location and estimated delivery times for each parcel. 

GPS tracking is used in conjunction with barcode scanning at each transfer point to allow the purchaser to see where their package is at each stage of its journey; from warehouse to distribution centre to doorstep. 

Recorded delivery

Many couriers will be required to take a photograph of the parcel being handed over; however, this is not a foolproof system. 

Signed for delivery ensures that the parcel is delivered direct to a human who confirms receipt with their name plus the date and time, either digitally or in ink. 

This method can prevent parcels being left unattended on doorsteps in all weathers and for prying eyes to see. 

Tamper-evident seals

Tamper-evident seals show when a package has already been opened, and the adhesive seal cannot be returned to its previous state. It provides very obvious proof that a package has been opened and acts as a deterrent to potential thieves.

For card envelopes and boxes, a rip strip or tear open will show that it has been opened as the tear filament or tape can’t be closed again.

Standard packing tape on parcels can be replaced, but custom tape is much harder to replicate, making it clear when a parcel has been damaged and a repair attempted.

Adhesive single-use labels with unique serial numbers or identifiers which cannot be replaced, or plastic tagging are also options depending on the type of package. 

Reliable delivery services

Citizens Advice publishes rankings for parcel delivery services in an annually published league table. Some delivery companies consistently fail to deliver on accessibility, customer service and non-delivery. 

The 2025 league table ranked Royal Mail as top, followed by Amazon Logistics, DPD, Evri and Yodel. None of the companies scored more than 3.25 out of five stars overall. 

Royal Mail ranked highest for trust and joint highest for delivery. Choosing a company that can reliably deliver your goods to the customer is one way to ensure they arrive safely. 

Fewer transfer points

Choosing a good courier is step one, but working with a company that has fewer transfer points, with products spending less time in distribution warehouses is not only more efficient, it also creates fewer opportunities for lost parcels.

Protective packaging

Using the right packaging for the product will help protect it from accidental damage. For example, you would not expect ceramics to survive transit in a poly despatch bag. 

For each product, make sure you have the right amount of protective packaging, whether that be padded envelopes, protective foam or packaging filler. Boxes should be sturdy enough to take the weight of the product and that of other parcels that might be stacked on top.

Discreet packaging

One of the few times branding might not be in your favour is when the contents of a parcel are advertised on the packaging. Announcing an expensive item with highly branded packaging can make the package more appealing to thieves. 

However, subtly branded, high-quality custom packaging can make all the difference to the consumer experience. 

Insurance

Your courier insurance is there for when the worst happens, and the delivery company fails. Analysis of unclaimed refunds for parcels that have been lost or damaged in transit has shown retail companies are losing up to £2.1 billion by not claiming on their insurance. 

While it does not help the customer in the short term, it can make your profit margins a lot more comfortable.