Online shopping has become the norm – fast, convenient, and accessible from your couch. But behind the ease of clicking “order now” lies a growing issue that directly impacts product prices and the financial stability of online merchants: unclaimed and rejected parcels.
The Customer Doesn’t Pick Up – Who Pays?
When a customer fails to pick up a parcel, it might seem like a harmless personal choice. In reality, every such case triggers a cascade of additional costs:
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the parcel was already packed (Ecommerce Logistics Report, 2023),
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materials were used (box, filler, labels, packaging),
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it was shipped – including postage and courier fees (DHL E-commerce Insights, 2022),
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after non-collection, it must be returned to the sender,
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it must be received back into the warehouse,
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its condition checked, processed and logged,
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undamaged goods repacked,
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damaged goods discarded at a cost,
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and packaging waste must be disposed of, as it’s often no longer usable (Circular Packaging Europe, 2023).
It’s also important to highlight the legal aspect: by placing an order and selecting cash on delivery (COD), the buyer enters into a distance contract and commits to accepting and paying for the goods. Failure to do so without a valid reason constitutes a breach of obligation, which can lead to additional costs or liability (EU Consumer Rights Directive 2011/83/EU).
Direct Impact on Product Prices
Retailers cannot absorb these losses indefinitely. They must factor them into product prices. This means that every customer who responsibly accepts their parcel is also covering the cost for those who don’t. According to the European E-Commerce Association, hidden costs due to returns and non-collections can raise product prices by 5–15% (European E-Commerce Association, 2023).
Marketing Budget Burned
This is particularly painful for companies investing heavily in digital advertising. Every ad click, every website visit, every cart action costs money. If the order is placed but not completed (i.e., not picked up), it results in a double loss: the marketing spend is wasted, and operational expenses are unrecoverable (Meta Advertising Trends, 2022).
If return rates are not factored into campaign and pricing strategies, companies can quickly slide into negative profitability.
Why Not Eliminate Cash on Delivery?
Many might ask why businesses don’t simply eliminate cash on delivery (COD), given its risks. But the answer isn’t that simple. On one hand, consumer distrust in digital payments is growing due to increasing cybercrime and fraud. Europol and national agencies report a steady rise in credit card fraud and identity theft (Europol Cybercrime Report, 2023). Many consumers feel safer paying only when the item is in hand.
Additionally, card processors charge high transaction fees – between 1.5% and 3.5% per purchase (European Payment Reports, 2022), which further burden retailers. And finally, digital payments leave a data trail. Consumers are increasingly concerned about surveillance, profiling, and data-sharing with advertisers (EDPS, 2022). For many, COD still represents privacy, control, and anonymity.
Environmental Damage – The Ironic Contradiction
Beyond business costs, there’s the environmental toll. The EU is actively promoting emission reduction, waste minimization, and resource efficiency. Yet unclaimed parcels quietly undermine these goals:
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unnecessary transportation in both directions (Reverse Logistics Association, 2022),
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excess packaging and waste,
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increased energy use for logistics,
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more greenhouse gas emissions,
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and disposal of still-usable products and materials (Ben-Gurion University, 2021).
Conclusion
An unclaimed parcel is not just a lost sale. It represents wasted materials, time, labor, storage, energy, marketing investment, and environmental resources. The burden isn’t just on the seller – it’s shared by the entire market and all consumers. That’s why this issue must be addressed systemically – through better regulation, incentives for responsible shopping, and clearer communication between merchants and buyers.
Next time you click “order now,” remember – by accepting your parcel, you help keep e-commerce fair, sustainable, and affordable for everyone.
Sources:
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Ecommerce Logistics Report (2023)
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DHL E-commerce Insights (2022)
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Circular Packaging Europe (2023)
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European E-Commerce Association (2023)
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Meta Advertising Trends (2022)
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Reverse Logistics Association (2022)
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Ben-Gurion University (2021)
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Europol Cybercrime Report (2023)
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European Payment Reports (2022)
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EDPS – European Data Protection Supervisor (2022)
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EU Consumer Rights Directive 2011/83/EU
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