How Much Does a Failed Delivery Attempt Actually Cost?
Failed delivery attempts are undoubtedly a growing concern for logistics and eCommerce businesses across the UAE.
Industry reports indicate that last‑mile failures cost retailers an average of AED 60 per order. Statistics also show that up to 8% of all first-time delivery attempts fail and the region’s eCommerce market is projected to hit AED 62 billion this year.
So, if we do the math with the average order value ballparked at AED 300, the UAE could lose approximately AED 992 million in 2025, thanks to failed delivery attempts.
This blog takes a closer look at what failed deliveries really cost in the UAE. We’ll dissect both the visible and hidden expenses, examine local delivery challenges unique to the region, and show you how to calculate the true financial impact of a failed delivery attempt, so you can stop treating it as a small hiccup and start seeing it as a fixable, measurable problem.
What Is Considered a Failed Delivery Attempt?
A failed delivery attempt refers to any instance where a courier is unable to successfully hand over a package to the intended recipient. This is a recurring problem in both eCommerce and courier operations across the region, particularly in urban centres like Dubai, Abu Dhabi, and Sharjah, where failure rates often range between 15 and 20 percent.
Common causes are: gated community access restrictions, customers being unavailable during delivery windows, or incorrect or incomplete addresses in high‑rise towers, especially in new residential developments where mapping may still be inaccurate.
Couriers also face challenges when customers do not answer calls, or when access to buildings is restricted by entry codes or security procedures. In some cases, no concierge or recipient is available during the designated delivery window, leaving the courier with no option but to move on.
Why It Hurts Your Bottom Line in the UAE
In the UAE, customer expectations around delivery are largely driven by fast and reliable services from platforms like Talabat, Amazon.ae, and Noon. Customers expect real-time updates, punctual arrivals, and seamless handoffs. Anything less can lead to complaints, negative reviews, and eventually a loss of trust.
Logistics providers operate in a highly competitive environment where a single delay can strain client relationships or even cost a valuable contract. A failed delivery often means rescheduling the same order, which increases operational costs and disrupts the dispatch flow.
During peak summer hours, drivers struggle more with time loss due to harsh conditions. This affects their productivity scores and can cause companies to miss their service level targets.
Cash-on-delivery transactions make the operations even more complex. If the customer is unavailable or changes their mind, the order may be refused altogether. These failed handoffs create additional losses, since the company has already incurred handling and delivery costs without securing payment. In short, in such a fast-moving, expectation-driven market as the UAE’s, a failed delivery attempt comes at a price no logistics provider can afford to overlook.
Direct Costs in a Failed Delivery Attempt
Every failed delivery attempt brings with it a set of measurable expenses that quickly add up, especially when they occur frequently. These direct costs must be understood before businesses can calculate what failed attempts are truly costing them.
Fuel Costs
Fuel prices in the UAE are revised monthly and often vary from AED 3.00 to AED 3.50 per litre. A failed delivery forces the driver to either make a detour or return for a second attempt, increasing fuel usage. This is more relevant in areas like Dubai Marina, where parking and navigation can take longer than expected.
Driver Wages
Whether companies pay drivers a fixed salary or per trip, the time spent on failed deliveries is essentially lost labor. That time could have been allocated to a successful drop-off, which means the company bears the cost without any revenue in return.
Re-dispatching
Missed deliveries require back-end teams to reschedule and reroute packages. This adds strain to dispatching resources and delays other deliveries. For time-sensitive orders, this can lead to further cascading issues.
Packaging and Labeling
Redelivery may require repackaging, especially if the original package has been opened, damaged, or returned in poor condition. Labels may need to be reprinted, and in some cases, the entire packaging process must be repeated.
Customer Service Costs
Failed attempts almost always result in customer frustration. Call center agents must spend more time handling follow-up calls, complaints, and rebooking requests. This increases the average handling time per case and raises operational costs.
To put things in perspective, a single failed delivery attempt can cost anywhere from AED 35 to AED 50, depending on the size of the order, the packaging required, and whether redelivery is scheduled the same day or the next. When multiplied across dozens or hundreds of orders, these costs can decrease a retailer’s profit margins considerably.
Hidden and Indirect Costs in a Failed Delivery Attempt
Apart from the visible expenses, failed delivery attempts incur substantial hidden and indirect costs that influence long-term business performance in the UAE.
Damage to Brand Reputation
Customers expect same-day delivery standards set by local platforms. When their orders arrive late or are undelivered, satisfaction drops and negative reviews increase. In a market that values efficiency, this can significantly harm a brand’s image.
Lost Repeat Business
Emirati and expat customers often switch brands after encountering delivery issues. Studies show repeat purchase intent declines sharply after a single failure, endangering customer lifetime value in a region that relies heavily on word-of-mouth and reputation.
Wasted Delivery Slots
Time slots reserved for deliveries cannot be repurposed once missed. Missed drops block schedules and decrease the total number of packages a vehicle can deliver daily, thereby reducing overall fleet productivity.
Last-Mile Congestion
Extra delivery attempts contribute to traffic congestion in dense areas like Downtown Dubai, Business Bay, and Jumeirah Lake Towers. This increases travel time for all drivers, expands delivery windows, and slows down the workflow.
Impact on 3PL Billing or Penalties
Large retailers often penalize logistics partners for failing to meet agreed service levels. A late or undelivered order can result in penalty fees, reduction of future contracts, and loss of confidence from major clients.
How to Calculate the Full Cost of a Failed Delivery Attempt in the UAE
Calculating the cost of a failed delivery attempt in the UAE means accounting for every part of the process that gets disrupted. Fuel is only one part of the equation. Wages, lost productivity, and missed sales are just part of the cost businesses absorb when deliveries fail.
Start with the cost of fuel for a second trip, which typically ranges between AED 6 to AED 8 depending on the route. Add driver wages for the additional time, usually around AED 10 to AED 15 per half hour. Include the effort required to reassign the delivery, prepare a new shipping label, and repack the item, which can cost AED 5 or more per order. Customer service time to handle rescheduling or complaints also adds to the total, estimated at AED 7 to AED 10 per case.
In many cases, a failed delivery blocks a time slot that could have gone to a paying customer. That missed opportunity might cost another AED 10 to AED 20 based on the size of the business. Sum all of these up, and the cost of a single failed delivery can reach AED 45 or higher.
Cash-on-delivery orders increase the risk. If the customer refuses the parcel or is unreachable, the business not only loses the delivery cost but also the value of the item and associated handling. That can raise the cost of failure to AED 90 or more.
When multiplied across dozens of orders each day, these costs make a noticeable dent on profit margins. Businesses operating in areas like Downtown Dubai, Marina, and Al Nahda face higher chances of delivery failure due to access control, high-rise buildings, and narrow delivery windows. Factoring in these regional realities will help create a more accurate estimate of what each failed attempt truly costs.
How EnrichOrder.ai Reduces Failed Deliveries
As we’ve established in previous sections, most failed deliveries happen when the order details are unclear or incomplete. And that’s exactly what EnrichOrder.ai is built to solve.
Our intelligent, AI-powered verification system confirms every key element of an order before it’s sent for dispatch. That includes verifying SKUs, product variants, and payment preferences to validating contact information, preferred delivery slots, and delivery addresses, even in constantly evolving urban areas like Dubai or Abu Dhabi, where new buildings and neighborhoods can confuse standard navigation tools.
Customers are more likely to receive their orders on time when they know exactly when to expect them. Also, when schedules change, verified orders make it easier to reschedule or reroute without manual coordination.
By handling these checks automatically, EnrichOrder.ai helps retailers reduce failed delivery attempts, avoid unnecessary costs, and deliver the experience customers expect.
The true cost of a failed delivery attempt in the UAE goes far beyond fuel. Schedule a demo with us to lower your redelivery costs and get more confirmed sales the first time!