Who's at Fault for Damaged Products—and What to Do Next (2024)

Accidents happen, and anyone who’s ever received a broken product that was damaged in transit knows this all too well. In 2018, the three leading U.S. couriers (USPS, UPS, and FedEx) delivered approximately 13.5 billion packages; of those, 11% were damaged or not delivered at all.

Not only does this hurt the seller, who must replace or refund the order and deal with potential damage to their brand's reputation, it also becomes a hassle for the buyer, who must then take steps to ensure they are properly taken care of.

Who’s at Fault for Damaged Product?

Thankfully, the question of who’s at fault for damaged merchandise is an easy one to answer. Unless a prior arrangement between the buyer and seller has been agreed upon or some fine print excuses them of damages, the seller is responsible—at least initially—for the damaged item.

What a Buyer Should Do about Damaged Product

First and foremost, you should always be sure to read return policies before ordering anything. This can be especially important for large items, such as furniture, which can be a pain to deal with and a logistical nightmare to send back.

Now, let’s say you’ve received damaged merchandise. After you’ve gotten over the initial disappointment, you’ll want to take a few steps to ensure you’re properly refunded or taken care of.

1. Accept the Package

If an item is presented to you instead of being left on your porch and you can see right away that it has been damaged in transit, your first inclination may be to refuse the package. After all, it was broken before it got to you, right?

However, this could ultimately cost you more, putting you on the line for return shipping charges (some carriers' insurance policies nullify their responsibility to pay if you refuse the package) or storage fees acquired while holding the product while claims are processed. In addition, if you don’t accept the package, you won’t be able to properly document the damage for your claim.

2. Document the Damage

Upon accepting damaged merchandise, you want to immediately take detailed notes and snap photos of both the compromised packaging and the broken products; this may help to determine whether the package was improperly packed by the seller, or improperly handled and damaged in transit.

By documenting your damaged goods, you can present proof to the seller or retailer that the item was damaged (most are going to want proof; even if they don’t want the item returned to them, they can use these photos as evidence if they decide to file a claim against the carrier).

3. Contact the Seller

Most retailers have their return policies on their websites, which includes a section on damaged or defective items. Even small ecommerce businesses will typically include this information on their website or product listing. So, as previously stated, you should always check this before placing an order.

Things you should look for prior to ordering, and what you should understand when contracting the seller, include:

  • How soon you need to contact the seller after receiving a damaged item for them to accept responsibility. For example, If you don’t notice the damage for weeks, instead of shipping the item back to the retailer for a replacement, will you need to ship it to the manufacturer for repair?
  • Can you return the item by mail, in-person, or both?
  • Who is responsible for covering return shipping fees?

Always remember to report damaged goods to the seller as soon a possible so that they don’t think you’re responsible for the damage.

Buyer Tips for Dealing with Damaged Merchandise

Here are a few things to remember when you've received damaged merchandise.
  • Receiving a product that’s been damaged in transit is frustrating, but try not to take it out on the agent or seller when you contact them. There is a good chance this is not their fault either, and remember what they say, calm heads prevail.
  • Keep copies of everything: the packing slip, invoice, freight bill, correspondence with the seller, and photos of the damaged package and product. Simply snap a picture of them all with your phone.
  • Is the seller not cooperating with you on a legitimate issue? Wondering what to do if a retailer won't replace a damaged item? If you made the purchase on a specific selling platform, you can file a complaint against the seller; this could get you your money back or get them to work with you for fear of being removed from the platform. Otherwise, assuming you paid with a credit or debit card, you may be able to file a dispute with your credit card company or bank to have the charges reversed.

What a Seller Should Do about Damaged Product

The seller, upon being notified by the buyer that the product arrived damaged, can do one of the following:

  • Initiate a full refund without requiring the product to be returned
  • Offer a partial refund (depending on the severity of the damage) without requiring the product to be returned
  • Send a replacement item with or without requiring the return of the original
  • Request the buyer return the product, and then offer a full refund plus return shipping costs
  • Nothing—risking negative feedback, potential removal from a sales platform, and potential lawsuits depending on the cost of the merchandise

Although the seller must make the situation right, it’s not necessarily their fault the product arrived damaged. Sure, they may have improperly packaged the product, but there’s also a good chance the blame resides with the carrier. For example, a driver may have improperly stacked boxes, the item may have fallen off a conveyor belt in transit, or poor warehousing or weather conditions may have compromised it. All are valid reasons for returning goods.

To recoup their losses from the refund, the seller should then make a claim against the carrier service, generally through their website or by calling them directly. Here are direct links to the claims pages of “The Big Three”: UPS | FedEx | USPS

Seller Tips for Dealing with Damaged Merchandise

It’s in the best interests of an ecommerce retailer or seller to make good on damaged merchandise if the claim is legitimate and falls within fair and posted return policies. This will help ensure that customers continue to come back (89% of respondents in a consumer survey say that businesses can regain their trust if they take the steps necessary to resolve a problem) and keep them from posting negative feedback that can dissuade others from making a purchase.

Another way to avoid dealing with returns in retail is to work with a reputable fulfillment center like The Fulfillment Lab. At TFL, we pride ourselves on our ongoing record of safe package arrivals. The professionals in our fulfillment centers take the utmost care when packing your goods, and we have many different styles and sizes of boxes, along with a variety of custom packing materials to ensure their safekeeping. And, if something should happen in transit, we’ll take care of the return and replacement process, and deal with the shipping provider as necessary. This allows you to focus on what’s really important—growing your business!

Want to learn more about The Fulfillment Lab? Contact one of our packaging pros today!

Who's at Fault for Damaged Products—and What to Do Next (1)

Who's at Fault for Damaged Products—and What to Do Next (2024)

FAQs

Who is responsible for damaged product? ›

Who's at Fault for Damaged Product? Thankfully, the question of who's at fault for damaged merchandise is an easy one to answer. Unless a prior arrangement between the buyer and seller has been agreed upon or some fine print excuses them of damages, the seller is responsible—at least initially—for the damaged item.

What are the possible actions for dealing with damaged products? ›

Damaged Goods FAQ

The seller can either initiate a full refund without requiring the product to be returned or offer a partial refund. Alternatively, the seller can also send a replacement product.

How do you respond to a customer who received a damaged item? ›

Dear [Customer Name], I am extremely sorry to learn that you received a defective product in your order placed on [Mention Delivery Date]. Kindly accept my sincere apologies for the inconvenience. Our quality team ensures every product is scanned properly before they are shipped to meet our quality standards.

How do I report a broken product? ›

You can visit the CPSC Safer Products website and click on the File a Report option. Follow the easy steps as mentioned, provide information required, and complete your report. For more information about how you can file a complaint about a defective product, call the CPSC at 800-638-2772.

What is the responsibility for loss or damage to goods known as? ›

Liability for safety of the goods.

What are the 3 types of product liability claims? ›

The 3 Types of Product Liability and What they Mean
  • Design Defects. Design defects mean that the product, as planned and manufactured, is unreasonably dangerous or defective. ...
  • Manufacturing Defects. ...
  • Marketing Defects. ...
  • Recovering Damages in Product Liability Cases.

Can you dispute a damaged item? ›

If you've received a damaged item or never got a package that says 'delivered,' you may try to dispute it with your credit card issuer via a chargeback.

How do you apologize for a faulty product? ›

Dear [Customer Name], It has come to my attention that you weren't fully satisfied with the purchase of your [Product Name] from our company. I'm sorry that the product didn't meet your expectations, as [Company Name] always strives for the best customer experience.

What do I do if one or more of my products is damaged or missing in IPSY? ›

We'll replace any product* that is defective, damaged in transit, or missing at no charge. Be sure to check inside your mailer for items—sometimes we place products inside the mailer because it's too big to fit inside the makeup bag. *Our replacement policy is good for up to 45 days after the shipment date.

How do you respond to customer service damaged product sample? ›

Thank you for contacting us about the damaged product you received. I'm very sorry this happened and wish to make it right for you. I'm sending a replacement product, which I inspected for damage before shipping.

How would you handle a customer who was upset about a problem with your product or service? ›

Take your customer's frustration seriously, but not personally. Remain calm and actively listen to what your customer says. When you've confirmed you understand their frustration, thank them for communicating it, and tell them you'll get back to them with a solution.

How do you respond to customers when you can t do something? ›

Let's explore each in more detail.
  1. Thank them before responding. ...
  2. Lead with empathy. ...
  3. Be transparent about why you can't fulfill their request. ...
  4. Provide alternative options. ...
  5. Follow up about any referrals. ...
  6. Ask for feedback. ...
  7. Share helpful content with the customer. ...
  8. Stay connected with them.
Dec 19, 2022

What can a customer do if a product is faulty? ›

Right to a repair or replacement

If something you bought turns out to be faulty, you can decide to get a repair or a replacement. The seller must repair or replace the product for free, within a reasonable time and without significant inconvenience to you.

What should you do if you purchase a faulty product Why? ›

It might be worth contacting the manufacturer initially, just to make sure you're using the product correctly. But if the problem truly is a defect, it's best to return the item for a refund or exchange—if the retailer allows it and you're still in the return period.

What is considered a faulty product? ›

caused by a manufacturing defect. that the product doesn't meet the extra promises the manufacturer made about its quality, condition, performance or characteristics.

What does liable to damage mean? ›

DEFINITIONS1. legally responsible for causing damage or injury, so that you have to pay something or be punished.

What clause is not responsible for loss or damage? ›

What Is a Hold Harmless Clause? A hold harmless clause is a clear legal statement indicating that an individual or enterprise will not be held liable in any way for the risk, danger, injury, or damages caused to the other party.

What is compensation for damage and loss? ›

Damages is a sum of money which is awarded by the courts for the purpose of replacing the monetary value of property or rights which have been lost or damaged, or to cover expenses, loss, pain and suffering relating to a victim's injury or death. Damages is a form of compensation.

How do I claim product liability? ›

In order to succeed on a claim for strict product liability, a plaintiff must show that: (1) the product was defective (2) when it left the defendant's hand, and that (3) the defect caused the plaintiff's injury.

What do product liability claims typically cover? ›

Product liability insurance helps protect your business from claims that a product you made or sold caused bodily injury or property damage to someone else's belongings. An insurance company may offer this coverage as a standalone policy, but we include it as part of your general liability insurance.

What to do if a company refuses to refund you? ›

Contact your state attorney general or consumer protection office. These government agencies may mediate complaints, conduct investigations, and prosecute those who break consumer protection laws.

What is claim letter for damaged goods? ›

If you have received damaged goods, you have the right to file a claim with the seller. This is known as a claim letter for damaged goods. The purpose of this letter is to request a refund or replacement for the damaged items.

How do you account for damaged goods? ›

Set up an inventory write-off expense account to record the value of the damaged inventory. Every time you make an entry in the inventory write-off expense account, you reduce the amount of inventory carried on the books. Debit the cost of goods sold (COGS) account and credit the inventory write-off expense account.

How do you apologize for something that is not your fault? ›

So how do you apologize when you aren't wrong, or rather, if you believe you aren't wrong? Start by acknowledging how the other person feels. Like any other apology, express regret over what happened. If you're apologizing on behalf of someone on your team, don't make excuses for them.

How to genuinely apologize to customers without admitting fault? ›

How to Apologize to a Customer Without Saying Sorry
  1. Listen Before Responding. For an apology to be genuine, agents must know what they are apologizing for. ...
  2. Avoid Making Assumptions. ...
  3. Acknowledge the Issue. ...
  4. Demonstrate Empathy. ...
  5. Offer Reassurance. ...
  6. Demonstrate Interest In Solving the Problem. ...
  7. Keep It Personal. ...
  8. Final Thoughts.
May 15, 2022

How do you apologize professionally? ›

To apologize the right way at work, acknowledge what happened, state your mistake, and take corrective action based on what you've learned. Avoid apologizing too often or apologizing for others' mistakes, and don't take constructive criticism as a reprimand. Short, prompt and (if possible) in-person apologies are best.

What if the product is damaged during shipping? ›

Shipping carriers can be liable if you have proof they damaged the product during shipping. This can be hard to prove since you can't see what's going on with every individual package. But many of the major carriers offer shipping insurance to let the sender file a claim if the package was damaged or lost in transit.

How do you write an email about a faulty product? ›

[Outline in detail what you were advised or offered by the store]. To resolve the problem I request that you [state the remedy that you request: to replace the product with an acceptable product that is the same or of equal value, repair the item at no cost to you or refund the full purchase price of the product].

How do you apologize to a customer for bad service example? ›

I am sorry for the inconvenience that you have experienced. I realize that this was not the service that you expected, and I apologize for any trouble that we may have caused. We will do our best to correct the situation as soon as possible and ensure that this does not happen again.

How would you respond to a customer who isn t happy with a product or service? ›

Take their feedback into account, publicly respond to their criticism, be transparent about your mistakes, ask questions about any details that might not be clear, empathize, and offer solutions. Doing so demonstrates an earnest desire to continuously improve your customer experience.

Is seller responsible for defective product? ›

Product liability is when a manufacturer or seller is being held liable for placing a defective and unreasonably dangerous product into the hands of a consumer. If a product defect causes injury, the responsibility falls on the sellers of the product.

Who is responsible if an item is damaged during shipping? ›

Carriers are almost always responsible for transit loss or damage. However, consignees have a legal responsibility for keeping damage costs at a minimum and must accept damaged freight that can be reasonably repaired. If the goods are damaged so much that they become almost worthless, you may refuse the delivery.

Who is responsible for damage in delivery? ›

The carrier is liable for the loss of or damage to any goods up to an amount specified in the contract. The carrier is liable for the loss of or damage to goods in accordance with a specific term of the contract.

What is a person who is damaged goods? ›

informal : a person who is considered to be no longer desirable or valuable because of something that has happened : a person whose reputation is damaged.

Who is responsible for defect? ›

The vendor company is always responsible for rectifying defects. This is why you should first report the defect to the vendor. The importer or manufacturer may also be liable for the defect.

How do you prove a product is defective? ›

Product is defective

This could be due to a manufacturing error, a design defect, or failure to warn the consumer of a potential hazard. You can prove that a product's design is defective if you can demonstrate that the product poses a danger that the common consumer would not notice.

Who is liable for defects? ›

A defects liability period is the time period specified in the contract during which a contractor is legally required to return to a construction site to repair any defects which have appeared in that contractor's work since the date of completion.

Can I claim compensation for faulty goods? ›

Consumers can reject the goods and request their money back, provided they complain within a reasonable time. Damages. A consumer can claim damages, which will generally equate to the cost of repair or replacement of the goods.

What happens if an item is damaged during shipping? ›

Shipping carriers can be liable if you have proof they damaged the product during shipping. This can be hard to prove since you can't see what's going on with every individual package. But many of the major carriers offer shipping insurance to let the sender file a claim if the package was damaged or lost in transit.

What is needed in order to place a claim when there is a cargo damage? ›

To file a cargo claim, you need to get ready the following items:
  • Transportation documents (bill of lading, airway bill of lading, etc.)
  • Proof of delivery;
  • Statement of claim defining the details of the loss;
  • Photos of the actual damage;
  • Original invoice stating the value of the damaged goods;

Who can do a cause of damage report? ›

A damage report is provided by a repairer to help us understand the background to a claim. Generally, it will: Provide details of the item (make, model, serial number, age, colour) Confirm how it was damaged (water damage, damage from impact, etc)

What is the difference between defective and damaged? ›

A defective product is something which is defective from the moment of creation, whereas a damaged product suffers an alteration in state.

Who is the responsible for requesting inspection for damaged goods and packaging? ›

The receiving person is responsible for requesting the carrier to inspect the damaged goods and packaging. The formal request should be made by phone right after discovering any loss or damage. After the phone request, make out a request for inspection by the carrier in writing.

What does damaged mean law? ›

To define damages in law is to cite the harm or loss that results from injury to a property, individual or reputation. Damages, however, is the compensation provided to a person or entity that has suffered harm or loss due to the omission or action of another.

What is the legal definition of damaged? ›

The loss caused by one person to another or to his property, either with the design of injuring him, with negligence and carelessness, or by inevitable accident. The loss which someone has sustained, and the gain which he has failed to make.

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