Why consumer electronics has embraced AI-powered courier claims

Without consumer electronics, the world of e-commerce would not exist.

Nowadays, we all rely on consumer electronics for communication, leisure and, to varying degrees, work. From laptops and smartphones to game consoles and televisions, they have become ubiquitous in our pockets, homes, and workplaces. But they're also the reason that e-commerce can happen at all: the internet-connected devices that enable consumers to make purchases online.

It's a neat circle - using the latest tech to buy the latest tech - but consumer electronics companies are finding there's one growing flaw. As more people buy electronics online, the more electronics' deliveries are encountering issues. Now, the industry is fighting back with AI-powered courier claims.

Why consumer electronics needs AI-powered courier claims

Growth of e-commerce electronics sector

Be it iPods, Alexas or smartwatches, most consumer electronics trends come and go, but one has remained constant: they're all being sold online. Electronics is the second biggest e-commerce industry (behind fashion), accounting for 16% of the worldwide consumer electronics market and 13% of all online retail sales.

While China is the world's largest consumer electronics market, electronics also makes up more than one in five e-commerce purchases in Europe, with Amazon the destination of choice for new electronics and Backmarket (a Claimit user) leading the way for refurbished electronics.

Electronics delivery challenges

The surge in online electronics sales is great for the sales department, but trickier for the logistics team, especially given the specific delivery challenges facing electronics items. These include:

1. High fragility. From sensitive hardware to delicate internal components, consumer electronics are highly prone to damage without the right packaging and delivery processes. That's why courier companies use damage-limitation measures for electronics shipments, such as individual anti-static bags for exposed circuit boards and two inches of cushioning around each device. But even these aren't foolproof.
2. Strict regulations. Electronics equipment often contains highly-regulated components that further complicate successful delivery. Take lithium batteries, for example. Due to their fire risk, they face strict labeling, packaging and documentation requirements, increasing the potential for delays.
3. Specialist shipping. According to DHL, shipping electrical goods is "among the most sensitive and regulated in logistics. Without the right preparation, things can go wrong - from damage in transit to fire risks, customs delays, or returns due to improper labeling." Whether it's disassembling accessories or using tonnes of bubble wrap, sending electronics is not as simple as sending a t-shirt.

More online orders leads to more failed deliveries

You don't need the calculator app on your phone to work it out: the more goods you sell online, the more delivery problems you'll encounter. Especially when those goods are easily damaged and face tough delivery challenges. In the UK, 6.5% of orders encounter a delivery issue, rising to 10% in peak season. If you ship thousands of orders per month, the costs quickly add up.

What's more, consumer electronics are more likely to be stolen due to their high resale value (electronics make up 9% of all stolen cargo shipments). This further complicates delivery as orders cannot be left on doorsteps or slid through letterboxes.

The benefits of AI-powered courier claims for electronics e-commerce

Delivery issues happen, but electronics e-commerce no longer needs to bear the brunt of the cost. With AI-powered courier claims, any time an order is lost or damaged in transit (or stolen as a result of courier negligence), you can automatically file a compensation claim without having to navigate the complex Ts&Cs or compensation processes yourself. The result?

• Recoup compensation for failed deliveries. Failed deliveries is a major logistics headache - wasting time, damaging customer satisfaction, and also impacting your bottom line. AI-powered courier claims automatically lodges claims with couriers for delivery issues, so you get compensation without having to lift a finger.
• Free up your logistics team's time. Your team should be focused on successful fulfilment - not bogged down in dealing with failed deliveries. With AI-powered courier claims automating the claims process, your team has more time for higher value tasks.
• Work out best couriers for your products. Nowadays there are hundreds of courier options, so you don't have to sign a contract with just one courier for all your deliveries. For example, Curry's mostly uses DPD and Royal Mail, but also uses Uber and Beelivery for 1-hour rapid electronics delivery in certain locations. AI-powered courier claims give you insights and analytics into the most reliable couriers for particular products (i.e. telephony vs major appliances) and particular routes, so you can choose the best couriers for your items.

How to embed AI-powered courier claims in your e-commerce logistics

Logistics managers are, quite rightly, wary of adding new processes and platforms that disrupt their logistics workflows. But AI-powered courier claims platforms simply plug into your CRM or e-commerce site with no lengthy integrations or onboarding required.

To find out the logistics case for AI-powered courier claims, check out our blog.