Growing Pressure From Online Shoppers for Greater Parcel Protection

There’s growing pressure from consumers for retail businesses to protect purchases, with new data showing more than two-thirds of Australians who shop online have had a parcel lost or damaged in the past, with around half in the last 12 months.

The research, commissioned by Australia’s largest transport and logistics specialist insurance provider, NTI, has been released ahead of the busiest time of year for online sales with Black Friday, Cyber Monday, and Christmas shopping events starting from tomorrow (29 Nov).

NTI’s Parcel Protect spokesperson Nick Aiello said the national survey focused on the experiences of online shoppers who encountered problems once their purchase was shipped.

“69 per cent (%) of all respondents had experienced a lost or damaged parcel in the past, and one in three (32%) had a package lost or damaged multiple times,” Mr Aiello said.

“Over the past 12 months, almost two-thirds of Millennial (60%) and Gen Z (61%) shoppers had a parcel lost or damaged, with one in nine shoppers across all age groups experiencing the problem multiple times in the last year.”

Mr Aiello said the findings provide an opportunity for businesses to consider how to differentiate themselves when it comes to providing better customer service.

“How retailers respond when something goes wrong can make or break a relationship with the consumer. One in ten Aussies who had a parcel lost or damaged said they won’t shop with the retailer again,” he said.

“There’s a level of frustration with how lost or damaged parcels are handled, and businesses are being encouraged to up their game when it comes to returns and refunds and offering cover for goods.”

The research found more than three quarters of Australians would be more likely to buy from a retailer that included protection for goods accidentally damaged, lost, or stolen during shipping and delivery.

“More than nine in ten Australians see value in having shipping insurance included in the cost of their purchases, with 100% of survey respondents saying it’s important for any purchase over $200, and more than half (54%) seeing value for purchases over $100.”

“Just like shoppers look for free shipping when purchasing online, insured shipping is becoming a key decision point.”

Australia Post delivered three million items in a single day in December last year, with bumper numbers expected to continue this year.

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This media release contains general information only and does not take into account your objectives, financial situation or needs. You should obtain your own professional advice based on your personal circumstances. Our Parcel Protect products are subject to limits and exclusions. NTI is not responsible or liable for your use or reliance on the information in this media release.