Delivery Failures Cost E-Commerce
New analysis out of Mexico underscores the high operational cost of failed deliveries in e-commerce. About 8% of domestic orders require multiple delivery attempts, escalating costs and straining last-mile capacity. Tenants are seeking warehouses that can accommodate rapid returns processing, flexible dock scheduling, and exception management.
E-commerce growth in Mexico is hampered by logistical challenges, especially in last-mile delivery where issues like traffic congestion and security concerns persist. Consumers want faster, reliable delivery, but high costs and infrastructural problems make it difficult for companies to meet those expectations. This has led to a rise in the use of technology and strategic partnerships to improve speed and build customer trust. Failed first-time delivery attempts in Mexico can cost retailers an average of $17.20 per order, and nearly a quarter of businesses report that more than 1 in 10 deliveries fail initially. These failures result in increased expenses through reshipments and added customer service interactions, with each support ticket costing $12-25 to resolve. Moreover, 85% of shoppers say they won't return to a retailer after a poor delivery experience. Returns are also a growing factor, with online return rates averaging 20-30%, and even approaching 60% for e-commerce fashion. Some platforms are improving customer retention by offering prepaid return labels, app-based return initiation, and rapid refund processing. Efficient management of returns is becoming a key element in profitability, retention, and brand reputation.
