Online shopping sees surge in parcel theft claims in Australia

New data reveals that parcel theft claims have more than doubled this year, with Prestons in New South Wales identified as the worst suburb for such incidents.

According to an analysis by courier service comparison platform Fast Courier, in partnership with FreightSafe, claims for parcel loss have increased by 59% across the country. Although there's a broader demographic lodging claims, the average claim value dropped by 18.4% in 2024 to AUD $104.30 from AUD $127.79 in 2023.

The analysis shows the phenomenon, often referred to as 'porch piracy', has been on the rise since records began. In 2016, parcel theft was at a ratio of 0.06% of total deliveries, translating to six lost parcels per 10,000 deliveries. The figure has steadily increased, reaching 0.08% in 2018, spiking to 0.105% in 2021 and jumping to 0.125% by 2023. As of 2024, the rate stands at 0.154%, meaning 154 out of every 10,000 parcels are stolen.

Vincent Manero, Co-Founder of Fast Courier, attributed the rise in parcel theft to the surge in online shopping, a trend that intensified during the COVID-19 pandemic. "Demand for online shopping spiked during the COVID-19 pandemic. Despite the lockdown ending, demand for eCommerce remained strong with the market expected to reach an estimated AUD $51.6 billion in Australia this year," he explained.

Manero added that "while this is great for convenience, it also provides greater opportunity for thieves looking for an opportunistic crime. People are becoming increasingly brazen, snatching deliveries from porches in broad daylight, especially during peak sale periods such as EOFY and Black Friday."

Further analysis indicates that the highest incidences of parcel theft do not occur in central business districts but rather in inner-city and suburban areas. Padstow ranks as the second worst suburb this year and held the worst spot in 2023. "Suburbs such as Prestons and Padstow have seen significant parcels stolen," Manero noted.

Prestons, located 37 kilometres southwest of Sydney's CBD, saw a 39.5% increase in parcel theft rates over the past 12 months, with an average of 23 claims per month in 2024. Padstow, southwest of Sydney CBD, experienced a 63% decrease over the past year but still averages 18 claims per month. Wandana Heights in Victoria is now the third worst hotspot for parcel theft in Australia, accounting for 0.57% of all claims in 2024 with an average of 15 claims per month.

The top category for parcel theft remains alcohol, accounting for 7.7% of claims in 2023 and 6.6% in 2024. Toys and retail goods rose to the second position, while apparel and clothing fell to third. Other categories significantly affected include electronics and small appliances.

To combat this rising trend, Fast Courier and FreightSafe suggest several theft deterrents. These include using plain, non-descript packaging, diverting parcels if no one is home, installing outdoor security cameras, investing in lockboxes or parcel containers, and relying on neighbours for safekeeping of deliveries.

The data underscores the need for greater vigilance as parcel theft continues to rise, affecting various suburbs differently. While some areas see improvement, others face escalating risks, marking an ongoing challenge for consumers and the logistics industry alike.