In the competitive world of e-commerce delivering goods to customers is more than just logistics — it's a cornerstone of customer satisfaction and business success. For Australian online businesses, ensuring reliable deliveries nationwide is essential to maintaining trust, protecting profits and avoiding disputes. Delve into the responsibilities and issues with deliveries in Australia, plus best practices to manage the risks of 'missing deliveries'.
Delivery responsibilities of online businesses in Australia
Under Australian consumer law online businesses have clear obligations when it comes to delivering goods. These responsibilities are designed to protect customers and ensure fair business practices.
Ensuring delivery of online purchases
In Australia it's the online seller who must ensure that goods are delivered to the customer as described and, if applicable, within the specified timeframe. Delays or failure to deliver goods can lead to customer dissatisfaction and legal disputes.
Providing accurate information about terms of sale
Clear and upfront communication about delivery times, costs and processes is an essential aspect of a sale. Misleading or vague information can result in customer complaints and damage to your business reputation.
Handling delivery issues
Under Australian consumer law responsibility for goods not received or delivery losses usually sits with the seller, with very limited exceptions. If goods are lost, damaged or delayed, resolutions may include refunds, replacements or repairs.
To transfer delivery responsibility by exception
If a seller wants to transfer delivery risks to the customer (requiring them to arrange shipping or insurance), this must be disclosed clearly and obviously during the purchasing process. Otherwise the seller remains liable for delivery responsibility.
Risks associated with deliveries of online purchases
Delivery is a critical touchpoint in the customer journey, but it comes with inherent risks for online businesses to manage.
Online purchases lost or damaged: goods may be lost or damaged in transit, resulting in financial losses and customer dissatisfaction. This is especially problematic with items that are high in value.
Delays in delivery of purchases: delays can erode customer trust and lead to negative reviews, affecting repeat business and brand reputation.
Disputes over deliveries: customers may claim non-delivery or damage, requiring businesses to resolve disputes and show proof of dispatch. This can be time-consuming and costly.
Carrier limitations on responsibility for goods delivery: relying solely on carrier insurance may not provide adequate protection. Many carriers typically limit their liability in their insurance coverage and in their terms and conditions.
Best practices to prevent online purchase delivery issues
Keeping customers happy starts with reliable delivery. Here's how to reduce risk and build trust.
- Communicate clearly
Share delivery timelines, costs, and tracking updates so customers know what to expect, including accurate addresses or signature-on-delivery. - Confirm delivery status
State that once an order is marked delivered, liability ends unless non-delivery can be proved. - Plan for lost parcels
Explain your process for claims, refunds, or replacements upfront. - Exceptions
Set clear terms in any situation where goods in delivery are the responsibility of the buyer and consider the option of offering insurance for high-value items or providing shipping insurance at checkout. - Choose reliable carriers
Partner with providers that offer tracking and delivery confirmation. - Use smart tools
Automate tracking and make reporting issues quick and simple.
Insurance cover for parcel deliveries in Australia
- loss, damage and theft, including porch piracy
- no excess payable by the customer
- standard cover up to $10,000 per item, modifiable, with no minimum value per item
- replacement of goods as the primary settlement method
- single, simplified notification for customers and support teams
- all carriers included approach
- handling of 'Where is my order' (WISMO) enquiries.
How a broker can help ensure your business has the right goods delivery insurance
Managing delivery risks is a vital part of running a successful online business. By addressing potential risks and implementing control measures you can meet your obligations to your customers and protect your business from financial losses.
At Gallagher we think big when it comes to safeguarding your business and offer expertise and client focus to provide the right insurance solutions for SMEs. An insurance broker can provide invaluable guidance on assessing your specific business needs, the nature of the goods to be transported, destinations and the risk exposures involved.
This information helps enable online businesses to select the most appropriate insurance cover for domestic deliveries of goods.
