Courier claims automation is currently a hot topic in the world of e-commerce, but what actually is it? How does it work? And, crucially, is it worthwhile for your e-commerce business?
We’ve compiled 10 of the most frequently asked questions at Claimit, so you can learn everything you need to know about automated courier claims in just three minutes.
Contents:
- What is courier claims automation?
- Which couriers offer compensation for lost or damaged shipments?
- How likely is a lost or damaged shipment in 2025?
- Why are more shipments lost or damaged today?
- Why are more online retailers making compensation claims?
- Which part of the courier claims process is automated?
- How much could claims automation save my company?
- Which retailers benefit most from courier claims automation?
- How much does courier claims automation cost?
- How does Claimit’s courier claims automation work in practice?
What is courier claims automation?
Courier claims automation enables e-commerce businesses to recoup compensation from couriers for lost or damaged shipments with minimal intervention. With online purchases accounting for almost a third (29.3%) of total retail sales and 83% of online orders shipped to home addresses, deliveries are now inextricably linked to retailer revenue. But the rise in home deliveries has led to a rise in delivery issues, with more parcels lost or damaged in transit. Courier claims automation streamlines the claims process, making it easier for e-commerce retailers to recoup the costs from couriers.
Which couriers offer compensation for lost or damaged shipments?
Almost all major national and international couriers provide basic insurance for lost or damaged shipments – so no matter if you use Evri, DPD, DHL or UPS, you’re covered. This standard insurance usually covered from £25 – £100 per item depending on weight or value, but the traditionally complex claims process can deter many e-commerce retailers from claiming compensation.
How likely is a lost or damaged shipment in 2025?
The likelihood of a lost or damaged shipment varies according to the size of the parcel, the pick-up location, the last-mile delivery journey and the time of year, among others. In general, an estimated 1% of global shipments are lost each year, but this figure rises when it comes to last-mile delivery of online orders. In the UK, for example, 6.5% of deliveries encounter an issue, such as loss or damage, with 2024 Citizens Advice Bureau research finding that 36% of online shoppers have a delivery issue with a parcel per month. In addition, the chance of lost packages increases at busy times, such as December (+21%) and November during Black Friday (+41%).
Why are more shipments lost or damaged today?
As e-commerce continues to grow in popularity, there are more ways for your shipments to get lost or damaged in transit. From couriers handling higher volumes and trying to meet high customer expectations (i.e. same-day or next-day delivery) to adverse weather conditions and technological issues (i.e. logistics software errors or untested delivery methods), carriers are struggling with timely deliveries and losing more shipments.
Why are more online retailers making courier claims?
Lost or damaged shipments have a negative impact on retailers’ bottom lines through lost revenue and poor customer experience (24% of online shoppers refuse to buy from the retailer again). Traditionally, online retailers either absorbed these costs or tried to navigate the complex claims processes manually. But now, the problem of lost shipments has got bigger and the claims solution has got easier. Thanks to AI technology, retailers can automate courier claims submissions directly from their CRM or e-commerce site, making it easier to recoup lost revenue with minimal intervention.
Read our blog to find out more.
Which part of the courier claims process is automated?
With manual compensation claims, you need to:
- Ensure the claims adhere to the courier’s Ts and Cs
- Compile specific documentation and proof for each courier
- File each claim individually within a set deadline
- Track the claim until payment
With automated courier claims, you simply specify the courier and input shipment data directly from your CRM. AI then fills in the claims form correctly, submits the claim on-time, tracks the claim via a centralised dashboard and alerts you when payment has been received.
How much could claims automation save my company?
The more shipments you send, the more you can save. In the UK, 6.5% of UK deliveries encounter an issue, such as loss or damage. If you send 5,000 shipments per month, with an average value of £30, that’s 325 lost shipments worth £9,750 (or £117,5000 per year) – even before you factor in resource savings. At Claimit, for instance, we’ve helped retailers
recover up to 15% of their total shipping costs. Check out our calculator to see an estimate of your savings.
Read our blog for more info.
Which retailers benefit most from courier claims automation?
Online-only retailers that ship thousands of smaller, lower-value items per month suffer the most from lost or damaged shipments. As such, automated courier claims is especially beneficial if:
- You send more than 5,000 courier shipments per month – The higher the volume of shipments, the more frequent the delivery issues, the greater the savings.
- You don’t have a claims process in place – Each courier has a complex, time-consuming claims process, but now you can recoup lost revenue in a few clicks.
- Your logistics team tracks claims manually – Manual claims are slow, inconsistent and have a high margin for human error; automated claims are the opposite.
- Your claim success rates are low – Most reasons for claims denial (i.e. missing documents or missed deadlines) are a simple fix with AI automated claims.
- You’re looking to optimise profitability in 2025 – If you’re focusing on cost efficiency this year, courier claims automation is your secret weapon.
Read our blog for more info.
How much does courier claims automation cost?
Courier claims automation is usually charged per successfully recovered claim.
At Claimit, for instance, there is no charge for an unsuccessful claim. You only pay 25% per successful claim, once the claim has been settled. There are no set-up costs, no long-term contracts and no hidden fees.
How does Claimit’s courier claims automation work in practice?
- Claimit’s plug-in integrates with your couriers (Claimit integrates with 100+ couriers).
- Claimit identifies lost or damaged shipments (Claimit’s AI spots 50+ shipping errors).
- Claimit files a claim (directly from your e-commerce platform or CRM).
- Claimit tracks your claims status (from Claimit’s centralised platform).
- Claimit receives claims payment (Claimit improves claim success rates by 4x).
Read our blog to find out more.
Bonus FAQ: How do I get started with Claimit?
Book a demo to see Claimit in action. In the demo, we’ll give you a personalised look at the platform’s features (tailored to your business’ needs), provide a walkthrough of how Claimit works, discuss how much you could save (using your current data on lost or damaged shipments) and answer any questions you have on courier claims automation.
