Lost Packages 101: How to Handle Them - Lateshipment.com Blog (2024)

When you ship through DHL, FedEx, UPS, or USPS most packages make it to their destinations intact and on time. But, what about those rare occurrences when packages are lost in transit? Who exactly gets blamed when this happens? The seller or the shipper?

In most cases, it is the retailer who bites the bullet. This is because customers the accountability of the package from checkout to delivery falls on the business they ordered from rather than the shipping carrier, a third party.

Customers who’ve lost their packages are often aggrieved and take their grievances to social media and call out your brand. Just like this:

Hey @amazon thanks for ruining Christmas and losing my brother's Christmas present. What's the point in 2 day shipping if you lose the package?

— Eddie Smedley (@GettinSomeSmed) December 23, 2018

And what exactly happens when posts like this catch the attention of their followers/ your potential customers?

Your brand reputation takes a huge hit, customer churn rate hits the roof, and staying ahead of competitors becomes next to impossible (Uff 😤)

Worry not!

Here are some tips for retailers on how to handle lost packages,(spoiler alert!) save on shipping costs, and improve customer loyalty.

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.

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 as ‘delivered’ and the customer still files a complaint about the package being lost, then it has to be treated as a stolen package.

Here’s how you can prevent package theft.

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

  • File refund claims for DHL lost packages here
  • File refund claims for FedEx lost packages here
  • File refund claims for UPS lost packages here
  • File refund claims for USPS lost packages here

Step 3.1: How do I file a claim for 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.

  1. If the contents of the package cost less than $100, you can complete the entire form online and request a refund without documentation.
  2. In the event of the package costing anywhere above $100, proper documentation is necessary for the claim to get processed.
  3. Documentation can include FedEx pickup records, photos of the damaged or lost contents, and proof of value documentation.
  4. Claims have to be filed within 60 days for US shipments and in 21 calendar days for international shipments (withall supporting documentation filed within 9 months of delivery date).
  5. 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.

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 require lots of back and forth communication along with document re-submissions

Worry not! You can make use of a parcel audit solution such as LateShipment.com to help you effortlessly recover refunds for lost packages while you focus on your core business.

Step 4: How Lateshipment.Com Helps You Handle Your Lost Packages

Lost Packages 101: How to Handle Them - Lateshipment.com Blog (5)

LateShipment.com’s Parcel Audit and Refunds solution effortlessly audits your invoices and helps save up to 20% on your shipping costs. The best part is that it takes less than 2 minutes to set-up and seamlessly integrates with your existing workflow.

Our parcel audit and refunds solution:

  1. Not only submits claims on your behalf but also constantly follows up till issue resolution.
  2. Makes sure that all claims are submitted within the timeframe of the carrier(s).
  3. Not just lost shipments, but also helps you recover refunds for 50+ service failures like late deliveries.
  4. And best of all this, you don’t have to pay anything out of your pockets. We only charge 50% of the refunds you’ve received, that too only when it is successfully recovered.

Sure, refunds are great for your business. But getting them doesn’t help in mitigating the pain of a loyal customer who might have lost packages such as birthday gifts or an anniversary surprises.

That’s when our other featureDelivery Experience Management (DEM)platform can help. DEM is particularly helpful if you are a bulk shipper who uses multiple carriers and would prefer an efficient automated workflow.

Step 4.2: How Delivery Experience Management (DEM) Platform Works

Lost Packages 101: How to Handle Them - Lateshipment.com Blog (6)

Delivery Experience Managementplatform keeps you in check the status of the parcel and helps you stay ahead of lost or damaged packages with ease. It is easy to use and tracks every package you send via major carriers like FedEx or UPS.

When a certain package takes a detour, DEMsends out an alert to the sender and the receiver. This helps you foresee a delay and handle it proactively.

If you send out several packages at once, and some of them are suspected lost by our automated system, you are intimated of that as well.

Since you get to know well in advance if one or more packages are flagged as lost, it gives you an edge when you get in touch with the carrier to resolve the issue or send a quick replacement in case of a time-sensitive delivery.

The value we add to businesses is most evident when experienced first-hand.

Try LateShipment.com now.

Or, get in touch by writing to us atsales@lateshipment.com

As an industry expert deeply entrenched in the logistics and shipping domain, I can provide valuable insights into the complexities of handling lost packages, a common concern faced by retailers and businesses relying on shipping carriers such as DHL, FedEx, UPS, and USPS. My extensive knowledge and firsthand expertise in this field allow me to address the nuances involved in mitigating the impact of lost packages on a brand's reputation and customer loyalty.

The article delves into the accountability dynamics when packages go missing in transit, emphasizing the significance of the retailer taking responsibility for the lost items. Social media platforms often become a battleground for disgruntled customers, amplifying the detrimental effects on brand reputation, customer churn, and competitiveness within the market.

To address this challenge, the article outlines a comprehensive approach for retailers to handle lost packages, save on shipping costs, and enhance customer loyalty. The step-by-step guide encompasses critical concepts such as:

  1. Step 1: Determining if Packages Are Lost

    • Recognizing officially lost packages after a reasonable waiting period.
    • Identifying potential reasons for delayed deliveries, including wrong addresses or weather-related issues.
  2. Step 2: Dealing with Lost Packages

    • Providing customers with refunds or replacements when packages are genuinely lost.
    • Filing insurance claims with shipping carriers to cover the insured value of lost packages.
    • Emphasizing the importance of insuring shipments for valuable products.
  3. Step 3: Filing Refund Claims for Lost Packages

    • Offering specific guidance on filing refund claims for DHL, FedEx, UPS, and USPS.
    • Highlighting the essential documentation required for processing claims.
  4. Step 3.1: Challenges in Filing Claims

    • Discussing the challenges and hassles associated with manually filing refund claims.
    • Pointing out the time-consuming and cost-ineffective nature of the manual process.
  5. Step 4: LateShipment.com's Solution

    • Introducing LateShipment.com as a parcel audit solution to streamline the refund recovery process.
    • Highlighting the efficiency of the platform in submitting claims, following up on issues, and saving up to 20% on shipping costs.
    • Emphasizing the cost-effective nature of the service, with charges based on successfully recovered refunds.
  6. Step 4.2: Delivery Experience Management (DEM) Platform

    • Introducing DEM as a tool to proactively manage the status of parcels and address potential issues.
    • Providing insights into how DEM alerts senders and receivers about detours or suspected lost packages.
    • Emphasizing the value of DEM for bulk shippers with an automated workflow.

In conclusion, my expertise allows me to assert that the article provides a comprehensive guide for retailers to navigate the challenges posed by lost packages, offering practical solutions and leveraging innovative platforms like LateShipment.com to enhance operational efficiency and customer satisfaction.

Lost Packages 101: How to Handle Them - Lateshipment.com Blog (2024)

FAQs

Lost Packages 101: How to Handle Them - Lateshipment.com Blog? ›

Thus, anything that happens in transit is the responsibility of the seller; they are responsible if the package is lost or damaged during transit, and usually must replace it or give a reimbursem*nt.

Who is legally responsible for lost packages? ›

Thus, anything that happens in transit is the responsibility of the seller; they are responsible if the package is lost or damaged during transit, and usually must replace it or give a reimbursem*nt.

At what point does the USPS consider a package lost? ›

Using the tracking numbers, you can check the delivery status online at USPS Tracking®. If seven (7) or more days have passed since the date of mailing and the recipient has confirmed the item has not arrived, you may either submit a search request for your lost mailpiece and/or email us.

How do I deal with a lost package? ›

When the shipping carrier cannot locate the packages, you should file an insurance claim to cover the lost packages' combined insured value and shipment cost. This requires the tracking number, proof of the value of the item, and proof of insurance.

How do companies handle lost packages? ›

Contact the delivery company. The United States Postal Service (USPS), FedEx, UPS, and Amazon all have claims sites with dedicated customer service teams to deal with lost or stolen packages. Let them know what happened and they may be able to help provide more information about your package's location.

Can you sue a shipping company for losing your package? ›

You may file a claim or lawsuit against the shipper if the cargo was not properly packaged and was damaged or lost as a result. You may sue the carrier if the shipment was improperly loaded, unloaded, or handled during transport.

Can I get compensated for a lost package? ›

Either the sender or the recipient may file a claim for insured mail that is lost, arrived damaged, or was missing contents. The person filing must have the original mailing receipt. Each claim must be filed within a certain time period and include proof of insurance, value, and damage.

Does the USPS actually investigate lost packages? ›

USPS® Mail Search

When we receive your Missing Mail search request, we will send you a confirmation email. We will also send you periodic updates about the search. If we find your package or mail, we will send it to the address you provided. Please note, sometimes we cannot find missing mail items.

How does USPS handle lost packages? ›

In these cases, USPS workers try to return those packages or items right back to the sender. But when that's not immediately possible (usually because there's no return address), those items get shipped off to USPS' consolidated Mail Recovery Center in Atlanta.

Does USPS take responsibility for lost packages? ›

Thus, anything that happens in transit is the responsibility of the seller; they are responsible if the package is lost or damaged during transit, and usually must replace it or give a reimbursem*nt.

How does UPS investigate lost packages? ›

Once the report is received, UPS will perform a package search. Package searches can take up to 10 business days. If the package is not located, a Damage/Loss claim letter will be sent to you, the shipper, via email, fax, or post.

Can I dispute if my package is lost? ›

Contact the shipper & explain you did not receive the item & request a replacement or a refund. If they don't want to honor that request, you can include that correspondence with your credit card company.

Who is responsible if a parcel is stolen from your doorstep? ›

If you were asked to select a "safe place" for the courier to leave the parcel and it was stolen, then it's your responsibility. However, it's the courier's fault if it was stolen and you did not nominate a "safe place". Many couriers now take photos of the parcel when they deliver it to prove it has arrived.

What happens to packages lost in transit? ›

However, lost parcels don't just lurk in depots or warehouses – after a varying period of time, they are collected up and disposed of. In the case of some carriers, this is done by auctioning off lost goods. Others share the goods out between members of staff.

What happens to all the lost packages? ›

Return to Sender

If the package can't be delivered back to the sender, USPS holds packages that are determined as valuable at their Mail Recovery Center, which is often referred to as the U.S. Postal Service's official “lost and found” department.

How common are lost packages? ›

If you've lost a package, you're not alone. In fact, according to research by Rensselaer Polytechnic Institute done in 2020, 1.7 million packages were stolen or lost every day in the U.S. In this article: Although it is unavoidable, you can take action to minimize the risk of delays and lost packages.

Is the buyer or seller responsible for a lost package? ›

The seller will always be responsible for the package containing their product until it gets to the purchaser. This essentially means that as an e-commerce seller, you are responsible for the package until it is officially delivered– even though the package is no longer in your possession.

Is it illegal to keep someone's package? ›

Unsolicited Packages

In some cases, a company will send you an item that you didn't purchase. This is called an “unsolicited good.” When you're sent an unsolicited good, you're within your rights to keep them. You have no obligation to send the item back or pay for it.

Is USPS not responsible for lost packages? ›

Yes. If the USPS has checked their facilities, vehicles and have a record that your mail was delivered they are not liable to refund your shipping or replacement cost.

Is the USPS liable for lost packages? ›

File a Claim

If your mail or package included insurance, you may be able to file an insurance claim. For damaged or missing contents, we recommend filing a claim immediately, but you must file no later than 60 days from the date of mailing.

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