Analysis from the UK’s most successful AI-powered courier claims platform Claimit has found that UK retailers are missing out on up to £2.1 billion a year in unclaimed refunds for lost and damaged parcels – a hidden cost that is quietly eroding profit margins across the sector.
More than 4.2 billion parcels were delivered in 2024. With 1% going missing or arriving damaged, that is equal to 42 million packages in total. Yet many retailers lack the specialist knowledge, time or resource to manage claims effectively, deterred by opaque processes that make recovery time-consuming and inefficient.
The result is that billions of pounds in recoverable claims are being written off by some of the country’s leading retail brands at a time when the retail sector can least afford it. ONS data shows UK retail sales grew by just 0.2% in Q2 2025, while logistics costs continue to climb. With operating margins squeezed, this pool of unclaimed revenue represents a significant and overlooked opportunity.
We spoke to Andy Watson, co-founder of Claimit to find out more, and in this video you will find:
- 00:00 Introducing Andy Watson, co-founder of Claimit
- 01:36 Latest UK parcel data from Ofcom – 4.3 billion parcels/year
- 02:37 The 1% of lost or damaged parcels
- 03:27 Only 40% of retailers are claiming what’s owed from couriers
- 06:32 How Claimit helps retailers with claims
- 11:45 Why hasn’t there been similar solutions before?
- 13:44 How Claimit use AI
- 15:05 How far back can I claim courier refunds and why should I sign up in Q4?
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.
– Andy Watson, co-founder, Claimit
