Who Is Responsible For a Lost Package: Buyer or Seller? - ProfiTrust (2024)

The issue of lost mail can lead to trouble. Chronically lost packages can be bad for your business, and disappointed customers are likely to share their experiences online-- which in turn could lead to poor brand reputation. And we certainly don’t want that.

In the e-commerce world, lost mail can become a big problem for merchants and consumers.

Any business worth their salt will follow their shipping processes to the T. A good business will triple check shipping addresses and will make sure that their products are packed safely before being shipped out to clients and customers.

Still, lost mail seems to be a prevailing issue, whether it is because of a tiny incorrect detail or the negligence of the mail carrier. Just about every online business will face this issue in some way, which eventually begs the question– is lost mail my responsibility as a business owner, or the responsibility of the customer?

The Issue of Lost Packages

The issue of lost mail can lead to trouble. Chronically lost packages can be bad for your business, and disappointed customers are likely to share their experiences online– which in turn could lead to poor brand reputation. And we certainly don’t want that.

To maintain your customer satisfaction rate, it should be a major priority of any online business to actively avoid lost packages. This involves checking off a to-do list of proper shipping:

  • Triple check that the address printed on the package is the same address included in the order.
  • Triple check that the name printed on the package is the same name included in the order.
  • Make sure that the necessary labels are all included on the package.
  • Make sure that those labels are securely fastened and adequately taped to the package.
  • Consider insurance for your packages and shipments. This is an especially good idea if you sell particularly expensive or luxury items.
  • Always fill in the “return to sender” section of your package’s postage label. If for whatever reason the package is lost and then found, it can be returned to your business, and you can figure out what the next appropriate steps to get the package to the customer should be.
  • Always include a “return to sender if undeliverable” statement on your shipping labels.
  • Save every last bit of your shipping information. This means everything from tracking numbers to shipping or delivery notes to receipts. These could prove to be very useful for finding packages that get lost. This is also very useful in case you need to fill a lost mail claim and need to build a case.

Following all of these steps can make it much easier to avoid chronically lost packages.

Is the Buyer or Seller Responsible For a Lost Package?

The short answer is: The seller, which means you, the business owner.

Obviously, if you printed the wrong address on the shipping label, didn’t include a return address, or poorly packaged the item, it’s 100% on you to compensate the customer with a new shipment or a refund.

When it comes to other things that could be out of your hands in the shipping process, you’re still going to be responsible for the product. 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.

This is where mail insurance comes in handy. By getting insurance for your packages, you can essentially shift the responsibility of the package from yourself to the mail carrier. Or at the very least, you can be compensated for the negligence of the carrier. Unfortunately, building a case for a lost mail claim can often be difficult to do as well as time-consuming.

Keep in mind that if the customer is not present to pick up the package, and the mail carrier leaves a notice, it is then essentially “delivered.” You are not in control of the customer not being home or providing an incorrect address. In these circ*mstances, the package would be their responsibility. This is typically the marketplace standard.

What Should I Do if a Customer’s Package is Lost During Shipping?

The most important thing you can do is be very proactive. Respond to your customer’s inquiry as quickly as possible and make it very clear that you’re on the case to find their package. Ensure them that if the package is not found, you will work on reimbursing them immediately.

Next, call up the customer service line for your mail carrier. File a claim immediately. While that process is taking place, look into the data you have on the package. What does the tracking number page say? Did you include all of the right information on the package? Was there an attempt to deliver the package and the customer didn’t pick it up?

If there is any sign that a mistake on your part resulted in the lost package, reimburse your customer immediately. That’s what good customer service is.

Trust the Pros for Your Business’ Shipping Needs

If the prospect of dealing with lost packages seems daunting, there are options available. There are platforms out there that will handle your shipping for you, as well as other operating needs. And one of the industry leaders is ProfiTrust.

ProfiTrust can help you save money on your e-commerce business and make sure you aren’t overpaying when it comes to your operating expenses. We are one of the few risk-free ways to cover your bases operationally.

Some of the profit enhancement services that we provide in addition to handling your shipping needs include:

  • Asset recovery
  • Class action settlements
  • Claims reviews
  • Collision subrogation
  • Health benefits
  • Merchant services
  • Payroll
  • Software
  • Telecommunication products and services
  • Utilities

Regardless of the category you choose, we’ll give you the best service possible. We’re focused on lowering your bills with current vendors or service providers and go out of our way to price their competition. That means total control and total transparency in the marketplace for you. We also don’t get paid unless you do– so we’re certainly invested in your success!

Who Is Responsible For a Lost Package: Buyer or Seller? - ProfiTrust (2024)

FAQs

Who pays for missing packages? ›

If it appears that your package has been stolen, contact the seller or retailer that sold you the item. Retailers have different policies and processes for handling stolen items, but you're usually entitled to a refund or a replacement. Amazon covers most stolen packages through its "A-to-Z" Guarantee Protection.

Is the shipper responsible for stolen packages? ›

Who is responsible if a thief steals your packages: the retailer, the carrier or you? ANSWER: Typically, you're out of luck, unless the retailer decides to be generous. Delivery companies say they're not responsible for reimbursem*nt if the package was successfully delivered to the correct house.

What happens if a delivery company loses your package? ›

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.

Is the seller or buyer responsible for shipping? ›

Once the goods are on the ship, the buyer is financially responsible for all costs associated with transport as well as customs, taxes, and other fees. For FOB destination, the seller assumes all costs and fees until the goods reach their destination.

Who is responsible if UPS loses a package? ›

The sender or receiver of a missing UPS package can open a claim with the company for a full refund. The entire claim process with UPS takes an average of 10 days to be completed. You can report a missing UPS package and file a claim at the UPS claims site.

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.

Who is responsible for lost freight shipper or receiver? ›

Areas of Responsibility Typically Assigned to the Receiver

The receiver, also often noted as the consignee, is responsible for documenting any loss or damages that might result from the carriage and delivery of freight.

Is USPS liable for lost packages? ›

The USPS® liability is restricted to lost, damaged, and/or missing content claims for the following products: Insured Mail (includes any mail class purchased with Insurance, i.e. First-Class Mail® or Priority Mail®) Registered Mail. COD.

What to do if you never received a package? ›

How to Start Your Search
  1. Check the Current Status. Before you begin your search, if your package or mail has tracking, check USPS Tracking® to see its current status. ...
  2. Complete a Help Request Form. ...
  3. Submit a Missing Mail Search Request.

Can I get my money back if my package wasn't delivered? ›

If the item was shipped through the post office and it was not delivered, the shipper will be directly refunded – as long as it was insured. However, if the package was stolen – which can be determined if the carrier scanned it right before delivery – then it's considered a crime that should be filed with the police.

At what point is a package considered lost? ›

A Lost Article is defined as any mailing that has not been received and has not been returned to the sender. Customers may file claims for damaged and/or missing contents immediately, but no later than 60 days from the date of mailing.

When the seller is liable for the shipping cost? ›

There are two FOB considerations: FOB Destination and FOB Shipping Point. If FOB destination point is listed on the purchase contract, this means the seller pays the shipping charges (freight-out). This also means goods in transit belong to, and are the responsibility of, the seller.

What is seller shipping responsibility? ›

The seller fulfIlls his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation.

Is seller responsible for return shipping? ›

Who pays for return shipping? The seller pays for return shipping if they offer a free returns policy or if the item was damaged, faulty, or doesn't match the listing description.

Does the shipper or receiver file a UPS claim? ›

If you're still unable to locate the package, the sender or the intended receiver can initiate a claim. Damaged: The shipper or receiver can initiate a claim on a damaged package, although UPS encourages the shipper to report package problems.

What if a UPS driver steals my package? ›

File a Claim with UPS

You will need to indicate your status as a receiver, report a lost package, and include any documentation to support your claim. UPS claims that it typically takes them between 8 and 15 business days to investigate lost or damaged package claims.

How do I get reimbursed for a lost UPS package? ›

Here's how to do it:
  1. Provide Some Details About the Package. This can be the package's tracking number, weight or contact information for the recipient.
  2. Let Us Know Your Role in the Claim. Indicate your relationship to the package. ...
  3. Support Your Claim With Additional Documentation. ...
  4. Submit Your Claim.

Can I dispute a charge for lost package? ›

Send a dispute letter to your credit card issuer at the address listed for billing disputes, errors, or inquiries — not the address for sending your payments. Look on your statement, online, or your credit card agreement to get the right address. Use this sample letter for disputing credit and debit card charges.

Is the shipper liable? ›

Shipper liability: General advice

Until the cargo arrives at destination and is released, the shipper liable for anything that happens to the shipment. Once the Bill of Lading is released, the consignee can do whatever he wants with the cargo.

Who is liable for cargo damage? ›

If the shipper can prove that a carrier received the goods in an undamaged state and delivered them damaged or lost, the carrier will be liable unless one of the five exclusions to carrier liability exist and the carrier was not negligent.

Who is liable for freight? ›

A carrier that finds they are liable will pay the claim. The actual amount received, however, depends on the carrier's liability coverage. Depending on the value of your shipment and this coverage, the carrier may pay for the full value of the lost or damaged freight. However, they may only pay a partial amount.

Can I sue the Post Office for losing my package? ›

You can't sue for lost mail, so think about getting insurance if you are concerned about a particular package. You can also send it through certified mail to receive proof that the mail was delivered.

What to do if a seller refuses to refund? ›

If the business or seller refuses to help you resolve your complaint, and you still feel like you have a legitimate argument for having your money refunded, there are still other avenues you can take, including chargebacks, mediation, a lawsuit, or arbitration.

What happens if USPS loses my package without insurance? ›

If you did not have insurance, but a Missing Mail Search determined your delivery is lost or damaged, a claim will cover the cost of shipping. You can file a claim anytime between 0-60 days for insurance related claims.

What are my rights if a parcel is not delivered? ›

Your item was delivered by a courier

If your item wasn't delivered to the location you agreed, it's the seller's legal responsibility to sort out the issue. You can ask them to redeliver your item. You can ask for a full refund if: a delivery date was essential and wasn't met.

What happens if the seller is responsible for paying freight charges? ›

FOB Destination, Freight Prepaid, & Charged Back: The seller takes responsibility for freight until delivery of the goods, and the buyer deducts the charges from the invoice. The original invoice includes the freight charges initially paid by the seller.

What are the liabilities of a seller? ›

The seller must have a saleable interest in the property. Where the seller does not in fact have a saleable interest, even if he is not guilty of fraud, he is still liable to pay damages to the buyer.

What is the measure of damages for a buyer when the seller fails to deliver goods as contracted? ›

The measure of damages when the buyer covers is the difference between the cost of cover and the contract price, together with any consequential or incidental damages.

What is the basic obligation of the buyer and seller? ›

In the case of contracts for the sale of goods, the basic obligation is that the seller deliver the goods and the buyer pay for the goods. Article 2, however, goes further, and provides specific rules relating to shipments and deliveries of goods, as well as to payment.

What are the main obligations of the buyer and seller? ›

The characteristics of an international sale of goods contract consists of the obligation of the seller delivering the goods and transfer the property in the goods to the buyer, which for its part agrees to pay the price for the goods and take delivery of them.

What are the four duties of seller? ›

These obligations are the obligation to deliver, the obligation to transfer ownership, the obligation to warrant the buyer against dispossession defects and non-conformity to the contract and other obligations. Failure to perform these obligation amounts to non-performance.

Does return to Sender do anything? ›

With return to sender, a mail carrier will pick up the mail item, whether it's delivered to the wrong address or person or rejected, and send it back to the sender.

Who is liable for return postage? ›

If you're returning the goods because you no longer want them, it's up to you to pay for the return postage. For other reasons, check the Terms and Conditions of the seller to see who pays postage.

Why are my packages returned to seller? ›

There are a few reasons an order can be returned to sender but most often it is due to an undeliverable address. Other instances include the package being unclaimed at customs or refused/returned by your end customer.

Does USPS give you money for lost packages? ›

You can receive a refund for mail that is lost or never delivered to its final destination as long as the package is insured. Collect on Delivery (COD) items, registered mail with insurance, Priority Mail Express, and other insured mail services are eligible for refunds via the USPS claim service.

Does USPS compensate for stolen packages? ›

USPS may reimburse you for stolen, lost or missing packages if the mail was insured. If your packages weren't insured, they likely won't issue a refund. Instead, you'll want to contact the seller. This holds for other delivery services, too.

Does USPS actually investigate lost packages? ›

The Postal Service™ will attempt to find and return your lost item(s), but submitting a search does not guarantee a successful outcome. We will return any mail piece from which we can locate a good address or match with an official search request.

Will Fedex pay for my missing package? ›

Claims for undelivered or lost shipments must be filed within nine months of the shipment date. You will need your tracking number to submit a claim online. You can file a claim and include supporting documentation, or add it later. Simply drag and drop documents from your desktop to your claim form.

At what point is a USPS package considered lost? ›

A Lost Article is defined as any mailing that has not been received and has not been returned to the sender. Customers may file claims for damaged and/or missing contents immediately, but no later than 60 days from the date of mailing.

How much does ups pay for lost packages? ›

UPS provides all packages automatically with $100 worth of liability for loss or damage. A shipper can choose to declare a higher value for the shipment with an additional charge.

What to do if a package is stolen off your porch? ›

As an alternative, or if the seller refuses to provide a refund or replacement, you can contact the shipping company to file a claim for a USPS, Amazon, or UPS stolen package. All major shipping companies enable you to file a claim.

How common is package theft? ›

Package theft frequency and cost

More than 3 in 4 Americans have been a victim of package theft in their lifetime. 79% of Americans have been a victim of package theft in the last 12 months (15 points higher than last year!). Over half porch pirate victims have had multiple packages stolen in the past 12 months.

What happens if USPS finds a lost package? ›

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. It is also possible that your package or mail will not be recovered because it was not safe to forward.

Who is responsible for stolen USPS packages? ›

Take as a whole, the Buyer is largely put in the position to resolve the issue by reaching out to the Seller or making a claim with the Delivery Company. The Buyer is also responsible for reporting the crime to the local police.

Do they investigate missing packages? ›

Occasionally the carrier can do an internal investigation to determine the shipment is lost. The majority of times, though, a more detailed investigation follows. If showing delivered and the customer did not receive the package, a phone call is placed to the customer and the delivery driver.

Do lost packages ever get found? ›

Yes they do get found. It really depends on why they're “lost”. Most lost packages are really cases where the label was destroyed and there was no packing slip or other way to determine who the contents came from or were going to. We know where the contents are but not the tracking number.

What is FedEx liable for lost packages? ›

Declared value rates are incremental and depend on the amount you declare. The first $100 of value in your shipment is included in your shipping rate at no extra charge as part of our standard $100 limit of liability. Your declared value fees reflect any amount that exceeds that $100.

Does the shipper or receiver file a FedEx claim? ›

The sender, the recipient or a third party can file the claim. Claims for concealed loss, visible or concealed damage, delay and FedEx® Collect on Delivery (C.O.D.) payment (where applicable) must be reported within 21 calendar days and all supporting documentation filed within 9 months of delivery date.

How long before FedEx considered a package lost? ›

FedEx offers a variety of shipping solutions to suit any business, but the question is, how long before a package is considered lost? The answer, according to FedEx, can vary based on the type of shipping service that was purchased, but the general rule of thumb is that an item will be considered lost after 60 days.

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