As Black Friday and Cyber Monday sales approach, Australian online retailers are being cautioned about the ongoing challenges of lost and damaged parcels, which continue to affect consumer trust and satisfaction.
Recent research commissioned by NTI shows that 64% of Australian consumers have experienced problems with receiving their online purchases intact. The issue is especially prevalent among younger buyers, with 76% of Gen Z and 73% of Millennials reporting incidents of lost or damaged parcels.
“Lost or damaged parcels are causing headaches for online shoppers. Thirty-six per cent (36%) of Australians have experienced a lost or damaged parcel at least once, with almost 30% reporting multiple issues,” said Jason Kibsgaard, NTI’s head of marketing. “The issue is front of mind for many shoppers, with 43% reporting a problem in the last 12 months and that number rises to well over half for Gen Z and Millennials.”
The research highlights that customer satisfaction tends to decrease as the time taken to resolve parcel issues increases. “Retailers can pay a high price for shoppers getting the run around on a solution, with satisfaction falling sharply the longer shoppers wait for a result,” Kibsgaard said. The majority of online shoppers prefer straightforward remedies such as refunds or replacements, rather than alternatives like store credit.
Negative delivery experiences can have a significant impact on retailer reputation and customer retention. According to the findings, 70% of consumers are likely to leave a negative review if their issue is not resolved satisfactorily, and one in seven say they would not return to the retailer.
As the value of online transactions increases, so does consumer interest in shipping insurance. Kibsgaard said: “About half of Aussies say shipping insurance matters to them when they’re spending over $100, and when the price tag goes above $200, all online shoppers prioritise shipping insurance.” The data also shows that 72% of shoppers are more inclined to purchase from retailers who offer shipping insurance.
The Black Friday and Cyber Monday period has become the largest retail event in Australia, surpassing Boxing Day, with online sales reaching $2.2 billion in 2024 and e-commerce growing by 12% year-on-year. Nick Aiello, NTI’s national product manager for cargo and carriers, described the current environment as “one of the most complex global trade environments we’ve ever seen,” referencing ongoing geopolitical tensions, shipping disruptions, and domestic weather events.
Port congestion remains a significant concern, particularly at major transhipment hubs such as Singapore. Chelsea Neely, logistics risk engineer at NTI, said: “Singapore is a key hub, and vessels usually wait two to three days to berth. During peak season, that can stretch to six days.” These delays can result in retailers having more cargo on a single vessel than intended, increasing their insurance exposure.
Retailers are also facing increased costs, with peak season surcharges of around US$250 for a 20-foot container and US$500 for a 40-foot container. Consumer expectations have shifted, with reliable delivery now central to the retail value proposition. Research indicates that 64% of shoppers would abandon a retailer after a poor delivery experience, and 85% say reliable delivery is the most important factor in trusting an online store. Bert Webster, NTI’s national development manager for distribution, said: “Our research shows 81% of customers will go straight back to the retailer when something goes wrong.”
