Insights to Help Your Business

DeliveryDefense Data Transforms E-Commerce Logistics and Reduces Losses

Minimize Losses, Maximize Efficiency – Your Secret Weapon for 2024!

 

Two packages sitting on a welcome mat in front of a door

In the competitive world of e-commerce, mastering logistics is the key to success. Exciting news: InsureShield® Shipping Protection by UPS Capital introduces the transformative power of DeliveryDefenseAddress Confidence, revolutionizing how businesses tackle post-delivery challenges. Since its launch in August, this innovative solution has been reshaping the landscape, helping to ensure streamlined operations and satisfied customers.

Powered by machine learning algorithms, DeliveryDefense technology analyzes billions of data points for address verification accuracy. Assigning risk scores from 0 to 1000 based on geography and parcel delivery history, this tool boosts delivery confidence, helping to safeguard both packages and businesses from losses.

The Game-Changer:

Businesses using DeliveryDefense data could reduce post-delivery losses by up to a whopping 30%, without compromising customer experiences. How? By using the predictive scores to inform where proactive measures should be taken, like in shipping to a UPS Access Point® location or in leveraging a no box, no label returns solution.

Real Results, Real Solutions:

A UPS Capital analysis showed a consistent trend: addresses with a DeliveryDefense risk score falling below 800 are causing significant losses. By redirecting these packages to UPS Access Point locations, businesses may be able to cut their losses by up to 30-40%. This change would impact only 10-15% of orders and less than 2% of the overall customer base. It's a practical adjustment with the potential for substantial savings for merchants.

Another use case for address confidence scoring involves addressing the seemingly minor yet impactful issue of empty box returns. Instances of empty box returns for major retailers indicate that addresses with low to average confidence scores are 3 times more likely to experience this problem. Delaying a refund until the item is in hand or employing a no box, no label solution for addresses with low confidence scores could effectively halve the problem for some retailers, highlighting the tool’s precision in solving nuanced challenges.

In addition to reducing losses, the DeliveryDefense Address Confidence tool offers retailers a means to safeguard their sales by revamping or enhancing their blocked address procedures. Many retailers maintain manual lists of addresses marred by negative or poor shipping experiences. However, this practice presents challenges. First, it often permanently blocks addresses, failing to unblock them when individuals relocate. When UPS Capital compared these lists with the DeliveryDefense database, it discovered that over half of the addresses listed scored high in confidence, meaning the shippers in the database and the broader UPS network encountered no issues with these addresses.

The second major challenge lies in the lack of address standardization or validation technology in retailers’ blocked address lists. Consequently, if the address on the label does not precisely match the format on the list, the retailer may inadvertently reship to the same erroneous address. Integrating DeliveryDefense Address Confidence scores offers retailers a systematic approach to proactively prevent losses while preserving sales.

One business owner exclaimed, “In today's ever-changing online world, tools combating various e-commerce challenges are indispensable. UPS Capital’s DeliveryDefense adds a vital layer of security and confidence for our company, helping to ensure packages reach the right customers efficiently and securely!”

Why DeliveryDefense Scores Matters:

The DeliveryDefense Address Confidence tool isn’t just software; it's a strategic advantage. By helping to minimize losses, save valuable time, and optimize resources, it empowers businesses to navigate e-commerce complexities seamlessly. With an average scoring time of .36 seconds, it's a time-saver, too, allowing businesses to prioritize customer satisfaction.

Key Features of DeliveryDefense Address Confidence:

  • Helps reduce post-delivery losses by up to 30% without compromising customer experience.
  • Scores return on average in .36 seconds, saving valuable time and resources.
  • Reduces empty box returns with a more strategic approach to refunds.
  • Retains sales opportunities by leveraging higher chain-of-custody solutions for addresses a business has blocked.

Join the Revolution:

Businesses eager to transform their e-commerce experience, reduce losses, and enhance customer trust are invited to explore DeliveryDefense Address Confidence today. It's not just an upgrade; it's a revolution, ensuring packages not only travel but also reach their destination with unmatched confidence.

Merchants can seamlessly integrate with the DeliveryDefense tool through APIs, enhancing their existing platforms or via our subscription-based web tool.

Sign up for a demo today and get a head start on 2024.

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Unless otherwise noted, all statistics used herein are derived from or based on information contained in the Address Risk Report, which is based on a compilation of two independent studies conducted by Dynata in December 2022 of 1,000 U.S. consumers aged 18+ and 500 U.S. SMB owners and decision makers whose businesses report $750K - $100M in revenue.

DeliveryDefenseTM services are offered through UPS Capital Corporation. UPS Capital Corporation reserves the right to change or cancel any DeliveryDefense service at any time. Each DeliveryDefense service is governed by the applicable terms and conditions and certain limitations and exclusions apply. This document/site is for informational purposes only, is intended only as a brief summary of the services, and does not constitute a contract, agreement, or offer of any kind, with respect to any DeliveryDefense service or other subject matter described herein. DeliveryDefense services may not be available in all jurisdictions. Statistics are valid as of the last day of the most recently ended calendar quarter. Actual scores are based on delivery, claims and other data collected during the 24 months preceding the date the score is rendered.