Logistics Firm Warns of Hidden Costs From Failed Deliveries During Peak Season

International Logistics Group (ILG), a provider of e-commerce logistics services, has cautioned e-commerce businesses about the hidden costs associated with failed deliveries during peak trading periods like Black Friday and the festive season.

According to ILG, a failed delivery results not only in immediate shipping expenses but also significant hidden costs. These include an increase in customer service calls (WISMO, "Where Is My Order?"), which can cost businesses £5-£10 per call. Furthermore, the processing of returns and refunds, including restocking and administrative overhead, adds to expenses. In 2025, e-commerce returns are projected to cost UK retailers over £60 billion annually.

In the long term, delivery issues can erode customer loyalty and damage brand reputation. Negative delivery experiences can lead customers to switch to competitors and can spread through social media and review platforms, deterring potential new customers.

ILG suggests that a managed multi-carrier setup can reduce risk. This approach, utilizing multiple carrier partners, allows for seamless rerouting of orders in case of delays or capacity issues with any single carrier. The system also optimizes costs and performance by selecting the most suitable carrier for each shipment and offers centralized control.

The company also emphasizes the importance of real-time tracking and proactive exception handling. Modern logistics platforms provide accurate tracking information and notifications that reduce customer service burdens and improve the management of customer expectations.