Book A Demo

Delivery Delays and Failures in E-commerce: U.S. vs. Global Trends

Discover the hidden costs of e-commerce delivery failures—from WISMO inquiries and refund expenses to customer churn and lost profits. Learn how to reduce delivery issues and protect your margins.
Author picture
  • Velo

Prevalence of Delayed or Problematic Deliveries (U.S.)

Recent studies show that delivery issues are alarmingly common in U.S. domestic e-commerce (covering categories like electronics, apparel, and general merchandise, excluding food/grocery). A 2024 survey by HubBox found over half (53%) of U.S. online orders encounter delivery problems, with packages arriving late, damaged, or at the wrong address​

fadata.com. In fact, roughly one in three orders (27%) are delivered late, and about one in six (15%) are misdelivered to the wrong address​

supplychain247.com. Other research aligns with these findings – in Körber’s 2023 consumer survey, 70% of online shoppers reported at least one delayed order in the past six months​

sdcexec.com. Likewise, a CivicScience poll indicates 56% of Americans have experienced issues like missing or damaged packages, and 21% say delivery problems occur “somewhat often”​

civicscience.com. In short, a majority of U.S. e-commerce customers have faced delays or delivery snafus, underscoring a widespread challenge in last-mile fulfillment.

Global Delivery Issues and Comparisons

The high incidence of delivery troubles is not unique to the United States – globally, e-commerce deliveries face similar challenges. In late 2021, a large survey of North American and European consumers found that almost 73% had at least one delivery “failure” in a three-month period (e.g. a late or never-arriving package)​

multichannelmerchant.com. Major issues cited were late deliveries (26% of consumers) and packages not arriving when expected (22%)​

multichannelmerchant.com. Research by address-verification firm Loqate revealed that around 8% of first-attempt deliveries fail in the U.S., compared to 7% in Germany and 6% in the U.K., indicating similar (though slightly lower) failure rates in Europe​

info.loqate.com. Moreover, 76% of online consumers across the US, UK, and Germany reported at least one late delivery in the past year​

info.loqate.com, showing that late arrivals plague shoppers internationally. Delivery quality can vary by region – for example, one study noted about 30% of European e-commerce shoppers frequently encounter delays​

page.koerber-supplychain.com, and in parts of Asia-Pacific, delay rates can be even higher due to logistics complexities​

avalara.com​

avalara.com. Overall, global trends mirror the U.S.: a significant portion of e-commerce deliveries worldwide arrive behind schedule or with issues, affecting customer experience across markets.

Trends Over Time in Delivery Performance

Delivery reliability took a hit during the pandemic and has gradually improved since. Prior to 2020, around 85–90% of U.S. parcel deliveries arrived on time within their promised window​

mckinsey.com. During the early COVID-19 disruption, on-time rates plunged – for instance, only ~72% of packages were on time in May 2020 (meaning nearly 28% were delayed)​

mckinsey.com. Carriers and retailers have since invested heavily in logistics improvements, and by 2022 delivery speeds and success rates rebounded. Average shipping times have accelerated by about 40% – dropping from ~6.6 days in early 2020 to 4.2 days by mid-2023 as retailers opened more local fulfillment centers and optimized routes​

mckinsey.com. Carrier performance metrics also show progress: the first-attempt delivery success rate in the U.S. climbed from 83% in early 2022 to 98% by late 2022, before stabilizing around 95% in 2023​

talkinglogistics.com​

talkinglogistics.com. This indicates that carriers drastically reduced missed deliveries or repeat delivery attempts within a year. Despite these gains, reliability hasn’t fully returned to pre-pandemic highs – tighter promised delivery windows and higher parcel volumes keep on-time percentages slightly below the old norm​

mckinsey.com. Still, the trend is positive. The chaos of 2020–2021 (when consumer surveys recorded record levels of delays and failures) has eased somewhat by 2023, thanks to improved capacity and technology in the last-mile network. Businesses continue to focus on closing the gap, as delivery performance remains a key competitive area in e-commerce fulfillment.

Financial Impact on E-commerce Businesses

Frequent delivery issues carry heavy financial consequences for online retailers. Lost sales and customer churn are a primary concern – when deliveries go wrong, many shoppers simply take their money elsewhere. Nearly 90% of consumers say they are less likely to buy again from a brand after a poor delivery experience​

sdcexec.com. In one survey, almost 23% of customers who experienced a delivery failure decided not to order from that retailer again​

multichannelmerchant.com, immediately cutting off future revenue from those shoppers. These lost future sales add up over time, hurting growth and undermining the return on costly customer acquisition efforts​

multichannelmerchant.com.

Delivery problems also drive up operational costs for businesses. Each failed or delayed shipment often incurs extra expenses: customer service handling, reshipping or rerouting packages, and processing returns or refunds. A study by Loqate found that 8% of first-attempt deliveries in the U.S. fail, costing retailers about $17.20 per failed order on average​

info.loqate.com. Those direct costs (transportation, labor, etc.) can total nearly $200,000 per year for a mid-sized retailer, just from failed first deliveries​

enterprisetimes.co.uk. Additionally, companies frequently provide compensation to placate customers after a mishap. Over half of retailers report they will attempt a free re-delivery (with 36% even covering additional courier fees), 41% offer a refund, and 34% issue a discount to make up for a botched delivery​

info.loqate.com. While these remedies aim to save the sale or preserve goodwill, they cut into profit margins. During periods of widespread delays (for example, holiday peak season or supply chain disruptions), fulfillment costs can surge due to overtime, rush shipping, and handling backlogs of customer inquiries – all impacting the bottom line. In short, delivery issues create a cascade of extra expenses (and lost revenue) that eat into e-commerce profitability.

Reputational damage is another financial risk. Late or failed deliveries can diminish brand reputation, which in turn impacts sales. Many shoppers won’t remain loyal if a retailer can’t deliver reliably, and negative word-of-mouth can deter potential customers. In surveys, 21% of consumers who had delivery problems said they lost trust in the retailer involved​

multichannelmerchant.com. Some 17% went further and advised friends and family to avoid that retailer after a bad delivery experience​

multichannelmerchant.com. This kind of reputational hit can quietly erode a company’s customer base over time. In an era when social media and reviews strongly influence purchasing, a string of public complaints about late or missing packages can hurt a brand’s image and make other shoppers hesitant to buy. The net effect is that consistent delivery failures can shrink a retailer’s market share, translating to real financial loss beyond the immediate order in question.

Effects on Customers: Satisfaction and Loyalty

From the customer’s perspective, delivery problems directly affect satisfaction and loyalty to an online store. Fast, reliable delivery has become a baseline expectation for e-commerce, so when things go wrong, frustration runs high. Surveys show that a large majority of shoppers are unhappy with current delivery services – for example, 85% of U.S. online consumers expressed some level of dissatisfaction with delivery experiences​

upperinc.com. The most common customer reactions to delayed or failed shipments include:

  • Dissatisfaction and frustration: Customers feel let down when a package arrives late or not at all, especially if they needed the item by a certain date. This erodes the customer’s overall satisfaction with the purchase. In a CivicScience study, over half of U.S. adults reported occasional delivery issues, which can negatively color their view of online shopping​civicscience.com. Many consumers now brace for potential problems whenever they order, which undermines trust in e-commerce convenience.
  • Demands for refunds or compensation: Shoppers often seek remedies for poor delivery service. Many expect at least a refund on shipping fees or a discount on a future order if their delivery is delayed beyond the promised window. Industry research confirms most consumers anticipate some compensation after a failed delivery​info.loqate.com. If a package is lost or damaged, customers will almost certainly contact the retailer for a refund or replacement. Handling these claims is now a standard part of e-commerce customer service. While good policies can save the customer relationship, retailers must absorb the cost. (Notably, 38% of customers in one survey said they received no compensation for a delayed order and found that unacceptable​sdcexec.com, highlighting that lack of remedy can further aggravate customers.)
  • Erosion of loyalty and repeat business: Delivery mishaps can quickly turn loyal buyers into hesitant ones. Convenience and reliability are key reasons people shop online; when that promise is broken, customers rethink their loyalty. As mentioned, up to 90% of shoppers say a single poor delivery experience makes them less likely to purchase again from the offending retailer​sdcexec.com. Customers may forgive one late package if handled well, but consistent problems are likely to drive them to competitors (especially as many retailers now advertise fast, guaranteed delivery options). This churn directly ties to the financial losses noted above – each disappointed customer who doesn’t return represents future revenue left on the table.
  • Reduced trust and negative reviews: Beyond just taking their business elsewhere, angry customers may actively voice their displeasure. In Körber’s survey, 29% of consumers said they would share a negative review online after a bad delivery experience​sdcexec.com. Whether through social media, review sites, or word-of-mouth, these complaints can influence others’ perceptions. Customers who see numerous “this store’s delivery is always late” comments may decide to avoid that retailer entirely. Thus, delivery issues can tarnish a brand’s reputation in the public eye, making it harder to win new customers. On the flip side, retailers known for dependable delivery (think Amazon Prime’s two-day shipping reputation) often enjoy stronger customer loyalty and positive referrals.

In summary, customers penalize retailers for delivery failures through lower satisfaction, demands for make-goods, and ultimately by withdrawing their loyalty. E-commerce is a convenience-driven model, so when the convenience factor falters at the last mile, it directly undermines the value proposition for the consumer. Shoppers have plenty of alternatives online, so a retailer that develops a track record of late or failed deliveries risks not only one sale but the lifetime value of each affected customer. Ensuring a reliable delivery experience is therefore critical to maintaining customer happiness and long-term loyalty in the e-commerce sector.

Sources

Go back to blog

Israel (Hebrew)

Youtube