Americans lost an estimated $15.7 billion from 241 million stolen packages last year. A new report finds that the crime, dubbed ‘porch piracy,’ is eroding consumer confidence in shopping online and leaving retailers increasingly vulnerable as the volume of theft continues to grow.

The research by Omnisend, which combines FBI crime data with the company’s consumer survey. It concludes that about 70 per cent of porch piracy victims receive various types of reimbursement, including refunds, replacements, and refunds for stolen items. 

“With Americans already planning to reduce their holiday spending, retailers are particularly vulnerable to theft losses this year,” said Marty Bauer, Omnisend spokesperson.

With retailers often footing the bill for stolen items, the industry faced a bill of around $6.5 billion last year, despite nearly a quarter of retailers refusing to take responsibility for it.

About 85 per cent of missing packages are worth under $100, with an average loss $65 per delivered package.

The report concludes that the problem has got so out of hand that 44 per cent of US consumers are likely to reduce their online purchases, while 27 per cent now prefer their packages to be held in lockers or held for in-store pickup; 29 per cent will buy from retailers that offer easy refund policies.

“Retailers can’t eliminate package theft, but they can minimize future losses by building trust – offering clear refund policies, flexible delivery options, and customer support that reassures shoppers they won’t be left on the hook,” said Bauer.

Higher rates of porch piracy are recorded in more populous states, such as New York, while in areas with more spread-out and tighter-knit communities, like Oklahoma, it happens considerably less often.

“For consumers, that means the risk isn’t just about what you buy online, but also where you live and how the packages are delivered.”