Land Of The Lost And Other Peak Season Challenges
A whopping 92% of merchants surveyed by UPS Capital report costly impacts to their business as a result of lost, stolen, or damaged shipments. Half of merchants say they lost $50,000+ in the past year.
As peak season arrives, and more packages hit the road, businesses and carriers are becoming more aware of shipping mishaps in the delivery experience—and for good reason. These incidents range from traditional hiccups, such as late, lost, and damaged deliveries, to emerging threats like porch piracy, fraud, and climate-related issues.
Among UPS Capital’s key findings on these emerging threats:
- 61% of shoppers say they won’t order from a small or mid-sized business anymore after two or three delivery issues—meaning shipping incidents are not only damaging to a merchant’s reputation, but also damaging to the bottom line.
- 75% of merchants experienced an increase in damaged, expired, or lost packages due to climate change over the past 12 months.
- 37% of merchants report credit card fraud is a growing risk to their business, while 31% say that return shipment fraud—such as missing merchandise and altered labels and return addresses—significantly impacts profitability.