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Online delivery issues spike year-on-year, but who covers lost or damaged packages?

Reviewed by Executive General Manager of General Insurance, Adrian Taylor
5 min read
25 Nov 2025
woman with stolen package

With Black Friday sales already ramping up and the festive period just around the corner, new research from Compare the Market reveals that the number of Australians experiencing online delivery issues has increased year-on-year, with nearly one in two experiencing problems over the past 12 months.

The latest research shows that 48.26% of Australians surveyed who have purchased goods online in the past 12 months have experienced issues – up from 42.84% in 2024.

Compare the Market’s findings showed that there’s been an increase year-on-year in the number of people reporting that items haven’t arrived on time, goods being delivered to the wrong address, theft, packages being left in wrong or inappropriate places, damage during transit and damage caused by weather.

Issue2024 percentage2025 percentage
An item hasn’t arrived on time19.05%19.11%
An item hasn’t arrived at all11.73%10.03%
An item was delivered to a different address9.25%10.66%
An item has been stolen from my property when it was left for delivery3.98%6.33%
The item was delivered to the correct address but left in a wrong/inappropriate place8.50%9.29%
An item has been damaged during transit when it arrived6.99%9.08%
An item has been damaged/destroyed by weather events when left at my property2.58%3.59%
Other1.72%2.42%
I’ve made online purchases in the last 12 months, but have had no issues57.1%51.74%

2024 statistics taken from a multiple-choice survey of 1,001 Australian adults, conducted September 2024. 2025 statistics taken from a multiple-choice survey of 1,004 Australian adults, conducted October 2025.

Compare the Market’s Executive General Manager of General Insurance, Adrian Taylor, said it wasn’t a trend people wanted to see in the lead up to one of the busiest online shopping periods.

“It’s quite concerning that a higher number of Australians we surveyed are reporting more problems with their online deliveries. And the unfortunate thing is packages that are stolen or damaged are rarely covered by your home’s contents insurance policy,” Mr Taylor said.

“Contents insurance is typically meant to cover your belongings against risks like theft, fire, and damage. However, many Australians might not realise that it generally doesn’t extend to packages or parcels that go missing from outside your home. So if a delivery is left on your porch, in your letterbox, or anywhere else outside and it disappears, your contents insurance likely won’t cover it. The same goes for items that arrive damaged after delivery.

“But that doesn’t mean you should ditch your contents insurance – especially if you’re nabbing a deal around gaming devices, jewellery, computers, whitegoods, electrical appliances and more. Contents insurance policies may cover these types of purchases once they’re in your home. So if you are splurging in the sales, make sure you update your policy so your new items are covered. Also take photos of your new purchases and hold onto shopping dockets, as you may need them if you have to claim.”

Mr Taylor said that if an item is delivered damaged or goes missing, you’d likely need to contact the delivery company or the retailer where you purchased the goods from.

“Your point of contact is likely going to be the delivery company or store where you made the purchase. But always review a company’s specific terms and conditions around your rights if a delivery goes wrong, as they can differ,” Mr Taylor said.

“Generally, if you’ve agreed to have a parcel delivered without requiring a signature upon delivery, tracking or registered post, it could be challenging to get a refund or replacement if an item goes missing or is damaged.

“Sometimes paying a bit more for that extra security can give you peace of mind if the worst happens. And unfortunately, as our latest data shows, this is becoming a widespread issue.”

Australia Post has clarified that its standard delivery service is best suited for items valued at $100 or less, with compensation generally limited to that amount in cases of loss or damage.

For higher-value items, senders can consider Extra Cover, which provides protection for deliveries up to $5,000. Online stores also typically offer an option for express or registered post.

Mr Taylor said there were several options available if people were concerned about items being stolen or damaged.

  1. Consider getting it shipped to your workplace or another address

If you know you won’t be home, you may be able to ship your items to your workplace or to an address where someone will be home to collect them safely.

  1. Opt for a PO box or parcel locker collection

You may also choose to have your parcels delivered to a PO Box or parcel locker, which allows you to safely pick them up at a time that’s most convenient for you.

  1. Select click and collect

Click and collect allows you to shop online and safely collect your items from a physical store. This option usually eliminates a delivery fee and you may even be able to pick up your items on the same day.

For more information, please contact:  

Phillip Portman | 0437 384 471 | [email protected]

Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.

 

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avatar of author: Phillip Portman

Written by Phillip Portman

When he’s not busy writing, Phillip can usually be found at the movies, playing with his Italian Greyhound Wilma, hanging out with his cockatiel Tiki, or talking about everything pop culture. He has a Bachelor of Arts in Communication and Journalism and has previously written about health, entertainment, and lifestyle for various publications. Phillip loves to help others and hopes that people learn something new from his articles.

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