UK retailers are losing £2.1bn each year over unclaimed refunds for lost and damaged parcels, new data has revealed.
Analysis from AI-powered courier claims platform Claimit found that more than 4.2 billion parcels were delivered in the UK in 2024, with 1% of those going missing or arriving damaged.
The group said this results in billions of pounds in recoverable claims being written off by retailers, and unclaimed revenue represents a “significant and overlooked opportunity.”
Its analysis also found that over 40% of UK retailers never claim for lost or damaged shipments, and for those that do, success rates are low.
Claimit co-founder Andy Watson said: “Retailers have learned to live with a structural inefficiency that simply shouldn’t exist. Every unclaimed parcel refund is margin left on the table.
For some brands, that’s the difference between breaking even and falling into the red. At a time when every cost is under scrutiny, recovering that lost revenue protects retailers’ margins and helps prevent those losses being passed on to consumers through higher prices or delivery fees.”
A review of data from retail brands show automation can increase claim success from 13% to over 70% and cut manual processing time by as much as 80%.
Frasers Group chief customer officer David Clark said: “AI is transforming retail operations in ways that go far beyond customer-facing experiences. AI technology has enabled us to simplify and streamline complex, overlooked processes that were historically inefficient and strained resources.
“By deploying AI agents in a commercially sensible way, we’re removing friction, improving accuracy, and strengthening the operational backbone of our business.”
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