Research finds that 34% of customers would not order from the same e-commerce business again if their package doesn’t arrive on time or gets lost. Further, 48% would make it a point to complain about the e-commerce platform’s customer service.
Lost packages are not just a big disappointment for the customer but a nightmare for e-commerce businesses as well. After all, e-commerce platforms don’t just lose their product but also their very coveted customer satisfaction—which is, let’s face it, the bedrock of repeat sales, revenue, and business growth.
If your customers aren’t happy, you best believe your days are numbered. So, why do packages get lost in the first place, and more importantly—what do you do when they do? Get ready to gain some answers right here.
Common Causes of Lost Packages
If you feel like Joey on his 30th birthday looking up to the heavens asking—‘Why God Why?’ when your packages vanish from the face of the earth, we’ve got some leads:
- Scanning Error by Carrier: In case a package is scanned incorrectly or, worse—not scanned at all, it can appear lost in transit. Without accurate and timely tracking updates, it could have been misrouted or simply left sitting at the carrier’s loading deck.
- Human Error in Sorting Stage: Manual package sorting can open doors to errors such as mislabeling or placing the package in the wrong batch, which can send it to the wrong destination, causing delivery delays and loss.
- Theft: Packages can be simply stolen from doorsteps, mailrooms, carrier loading decks, or even during transit.
- Package Becomes Unrecognizable Due to Damage: Serious damage to a package can compromise label legibility, making it difficult to recognize or deliver. If left undeliverable, packages can end up in a lost-and-found warehouse.
- High Volume Shipments: Peak periods such as the holiday season can witness a surge in deliveries, which can sometimes catch unprepared carriers by surprise, increasing the chances of packages getting misplaced, delayed, or lost during transit.
- Obsolete Technology: Obsolete tracking and sorting tools can cause misrouting or untraceable packages. A lack of automation and real-time updates increases the likelihood of lost shipments.
Steps to Take When a Package is Lost
Here are the steps to take in case you suspect your package is lost:
Step 1: Determine if the sent packages are really lost
If a package that was en route to a customer goes certifiably missing and has not arrived at their doorstep four or five days after schedule, then it can be officially considered lost.
A USPS package is considered lost if it hasn’t been delivered or updated in the tracking system for 7 days (Priority Mail) or 15 days (First-Class). Customers can file a missing mail search or claim for insured packages after this period.
When you suspect your packages as lost, wait it out a maximum of seven days beyond the day of expected delivery.
Sometimes, there are packages that turn up after being rerouted somewhere along the chain (they might have also been incorrectly scanned or sorted).
In most cases though, the issue is either a wrong address or a weather-related one. Quite simply, it is not unheard of for a package to turn up a day or two late.
In case the tracking number shows that the product has been ‘delivered’ and the customer still files a complaint about the package being lost, then it has to be treated as a stolen package.
Step 2: The packages are lost. Now what?
In case if your customers’ packages are truly lost, they naturally expect a refund or a replacement.
If the shipping carrier is unable to locate the packages, you need to file an insurance claim to cover the combined insured value of the lost packages. This requires the tracking number, proof of value of the item, and proof of insurance.
When you’re shipping valuable products, it is always wise to insure the shipments.
Remember that apart from the insurance sum, the carrier also has to fully refund the shipping costs for failing to deliver the package safely to the buyer.
Once the claim is filed and investigated, you will receive your dues via the original mode of payment be it through check or credit card.
Meanwhile, make sure YOU send the customer a replacement or a refund with a sincere apology.
Step 3: File a Refund Claim for the Lost Packages
The tracker on your package is usually true to its name and rarely allows packages to get lost. But on the off chance that the shipping label comes off, or the package is torn and the contents scattered, you’ll have no choice but to file lost package claims with the carrier.
Here are a few things you need to keep in mind if you’re going to file a claim for FedEx lost packages.
- If the contents of the package cost less than $100, you can complete the entire form online and request a refund without documentation.
- In the event of the package costing anywhere above $100, proper documentation is necessary for the claim to get processed.
- Documentation can include FedEx pickup records, photos of the damaged or lost contents, and proof of value documentation.
- Claims have to be filed within 60 days for US shipments and in 21 calendar days for international shipments (with all supporting documentation filed within 9 months of delivery date).
- The tracking number that was initially allocated to the package is vital to the process and has to be provided.
After a scheduled inspection, your claim will be processed and you can track its progress.
In the case of other shipping carriers, you can file claims online through the following links and within the following deadlines.
- UPS lost packages claim (file within 5 months online, within 9 months through customer service, and within 45 days if it is an uncollected C.O.D)
- USPS lost packages claim (file within 60 days for all services except Priority Mail Express, First class, and Surface Mail)
- DHL lost packages claim (file within 30 days)
Note: Filing Refund Claims for Lost Packages by Yourself Is a Huge Hassle
Apart from running your hectic business, manually submitting claims with shipping carriers by yourself is a huge hassle for more reasons than one:
Tedious Process – The process to file a claim manually is an exhaustive one, you will have to deal with multiple forms, proofs, and document submissions
Time-Consuming – After submitting a claim, you won’t get your refund immediately, it takes at least 5-7 days or forever to get a refund for one single package
Not Cost-Effective – The amount of time and money you will spend to get a refund will be greater than the compensation you will probably receive
Inefficient Use of Resources – This process doesn’t have a definitive output and requires lots of back-and-forth communication along with document re-submissions
Worry not! You can make use of a Lateshipment’s parcel and shipping invoice audit software to help you effortlessly recover refunds for lost packages while you focus on your core business.
Preventive Measures to Avoid Lost Packages
It’s better to be safe than sorry. That saying has never been truer than when it comes to lost packages. Here are some measures you can take to prevent your packages from getting lost:
- Prioritize Detailed Shipping Information: Make sure your packages have complete, accurate, and legible information. Further, confirm the customer’s address, package weight, shipping class, tracking number, and other important details to ensure your package can be tracked easily.
- Package your Items Securely: The packaging of your products plays a critical role in protecting them from harm while keeping them easily identifiable. Adopt striking colors with easy-to-read details to ensure your packages don’t get lost easily.
- Facilitate Real-Time Tracking: Consider integrating LateShipment’s Delivery Experience Management software to track your packages in real-time and gain timely delivery status updates.
- Offer Flexible Delivery Options: Allow customers to choose when and where they can get their package delivered (within reason). Empowering your customers to select the window within which they can get the delivery and enabling them to share an alternative address allows you to reduce the chances of packages getting stolen from the doorstep.
Conclusion
Tracking down lost packages and then raising claims is a time-consuming and expensive exercise—which is why you should consider onboarding LateShipment.com. Offering comprehensive risk coverage, customizable insurance rules, insight into carrier performance (that helps you during contract renewals and negotiations), and integration with all leading carriers—our tool helps automate 100% of your claims management, with a 99% claims success rate!
FAQs about Lost Package
How long should I wait before considering a package lost?
While this depends on your average delivery time and the circumstances, you can ideally suspect a package is lost if you can’t track it within 7-10 days of its expected delivery date.
What if the courier says the package was delivered, but I didn't receive it?
If the courier says the package has been delivered, but you haven’t received it, consider checking whether the package has been mistakenly delivered to your neighbours, contact your building manager, and check the usual delivery spots. After this, consider contacting the carrier for assistance.
Who is responsible for a lost package?
The liability of a lost package depends on the specific circumstances under which the package was lost. In case the package was lost due to unclear or inaccurate shipping details, the e-commerce business could be responsible. Alternatively, if the package has been lost due to negligence or human error on the carrier’s part, the carrier will be held responsible.
Can I get a refund for a lost package?
Yes, as an e-commerce business, you can get a refund for a lost package. However, it can be a tedious process if done manually. Consider integrating LateShipment.com’s Parcel and shipping invoice audit software to help automate and streamline the process.
