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Even the most careful packers and on-time shippers sometimes face the inevitable: a package gets lost in transit or arrives damaged. As a seller, how you respond can either strengthen customer trust—or cost you future business. This guide breaks down how to manage shipping mishaps with professionalism, protect your reputation, and minimize financial loss.

Stay Calm and Act Fast

If a customer contacts you about a missing or damaged item, acknowledge the issue promptly. Even if the fault lies with the carrier, your customer’s experience still reflects on your business. Let them know you’re on it, and begin gathering the necessary information.

Gather the Details

Ask your customer for photos of the packaging and the damaged item (if applicable). For lost items, confirm the shipping address and check the tracking number for updates. This information is essential for filing a claim with the carrier.

Know the Carrier’s Claim Process

Each shipping service has its own rules and timelines for claims:

  • USPS: Claims for damaged or lost Priority Mail shipments can be filed online within 60 days. Start a USPS claim.
  • UPS: File claims for loss or damage within 60 days of the delivery date. Start a UPS claim.
  • FedEx: Claims should be submitted within 60 days of the shipment date. Start a FedEx claim.

To strengthen your claim, include tracking details, photos, the item’s value, and a copy of your shipping label or receipt.

Offer Immediate Solutions to the Customer

While you handle the claim process, offer your customer a resolution: a replacement, refund, or store credit. You may choose to wait until the claim is approved, but in most cases, proactive sellers go ahead and make it right up front—it builds goodwill and speeds up the service experience.

Insure High-Value Shipments

For expensive or irreplaceable items, always opt for shipping insurance. USPS includes $100 of coverage with Priority Mail (when purchased through certain platforms), and additional insurance can be added affordably. UPS and FedEx offer declared value coverage automatically up to $100.

Keep Proof of Shipment

Always retain shipping receipts, tracking numbers, and drop-off confirmations. These serve as essential proof if a claim is disputed or if your platform (like Etsy or eBay) requires documentation during a buyer protection case.

Prevent Repeat Issues

For damaged items, evaluate your packaging. Was it cushioned enough? Was the box size appropriate? For lost packages, consider requiring signature confirmation on high-value orders, or adding a tracking app like Route to your checkout flow if you sell on Shopify or WooCommerce.

Handling shipping issues with empathy, speed, and structure can turn a frustrating situation into a positive brand moment. While you can’t control every step of the delivery process, you can control how you respond—and that makes all the difference to your customers and your long-term success.