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The Lowdown on Lost and Damaged Deliveries

Feb 12, 2020 5:00:00 AM

“Lost” and “damaged” are dirty words to shippers, but there are many ways these profit-paralyzing events can occur. Here’s a closer look at the situation and how 71lbs can help.

The matter of lost or damaged packages is a Pandora’s Box for shippers. Once opened, the evils of replacement costs, repost expenses and angry customers are all released, and it may be your business’ reputation that’s damaged or lost next.

Carriers harm packages through poor warehousing and shoddy vehicle packing, or they consign them to the “lost” list through damaged and unreadable address labels resulting in incorrect drop-offs or dead packages (which are neither deliverable nor returnable).

This is when the struggle and extra expense can begin for shippers, who often need to fight to get the treatment they deserve.

How FedEx and UPS handle loss and damage

FedEx offers up to $100 to recompense shippers for loss or damage. Even if that would be enough to cover things, don’t expect to get it without a fight. If a lost package is located and can be redelivered, FedEx customers could be facing anywhere from a $13.19 to a $1380 fee, depending on weight.

UPS is likely to deny a damage claim outright if shippers didn’t follow their packaging instructions to the letter. The only exceptions are if the package is damaged due to a search or if the truck is in an accident. The problems don’t stop there. Even if a shipper follows guidelines and submits a damage claim — with photographs — it’s then a matter of UPS’s opinion if the damage qualifies for compensation.

Damage to a package between leaving your hands and arriving at the destination is obviously a carrier-related issue. Yet, no matter how obvious the damage is, the burden proof is always on the shipper. In our previous article, we covered the hassle of filing a claim.

Things get even trickier where lost deliveries are concerned. Missing packages aren’t always a carrier’s fault and when it isn’t, they may not be helpful in finding a solution.

Porch pirates on the prowl

Data from packaging specialists Shorr reveals that 1 in 4 people had a package stolen in 2019, with both coasts hardest hit. The problem is hitting so hard that 29 percent of victims have changed their residence to avoid it.

Over half of those affected believe delivery companies aren’t doing enough to tackle the problem, and page 140 of the FedEx service guide exempts them from all liability for criminal acts. This presents a real problem for shippers: The carrier did perform, but the package is still gone, and the customer is still angry.

Pirates leave businesses with the triple bill of reshipping costs, replacement item expenses and the real possibility of profit loss if that customer leaves, or worse, encourages others to stay away with a bad review. The costly Catch-22 is that shippers have no choice but to foot that bill to save their reputation. At least, that’s the catch if you don’t use 71lbs.

Find 71lbs and lose your problems

That $100 lost or damaged refund we mentioned may be the very least your business is entitled to. The problem is many shippers will just take the money and call the matter settled. We understand that it takes time to fight loss and damage — and time is money — so that $100 can be tempting. With 71lbs on your side, we dig deeper into carrier performance and track down every cent you’re owed.

We monitor multiple major carriers, watch damage alerts and keep a close eye on proof of delivery. Our powerful system gives customers access to lost or damaged claims data along every step of the way, and our team of shipping advocates is here to make sure any refunds get credited directly back to your shipping account.

We also recommend checking out our shipping insurance, which is a cut above carrier offerings. More affordable and more forgiving, 71lbs insurance can save you up to 45 percent and covers both return shipping expenses and item replacement cost. We also cover your claims unconditionally — no more porch-pirate stress or fruitless struggles to prove the carrier was at fault.

Ready to find money you never knew was yours? There’s no fuss and no lost time or productivity for your business as we do the hard work to get your refunds. We’re already helping 5,000 businesses get effortless paybacks every month, so don’t let your own shipping department lose out.

At 71lbs, we focus on two things: a) helping customers save money on shipping, and b) helping customers understand their shipping costs. We provide refunds and savings on shipping insurance, freight and imports, among other benefits. Our automated dashboard displays easy-to-understand shipping costs and insights, so you can make better business decisions. Drop by the contact page to get in touch!

Topics: lost shipment, damaged shipment, carrier refunds, lost and damaged package refunds