The best way to handle package theft and misdelivered packages
Samir Kamnani
·December 19, 2024
What should you do about shoppers’ misdelivered packages?
When shoppers report a misdelivered package, or worse, a stolen package, your brand needs to be ready with a solution that will not only help your shopper feel better, but also will keep their business with you.One of the biggest customer fears around shopping online is that they’ll never get what they ordered. Those fears aren’t unfounded: Most shoppers have faced the challenge of not getting an item they’d ordered, especially during the holiday rush.
Here’s how to deal with misdelivered packages, regardless of which carrier your store uses.
Package theft and misdelivery: A growing problem
Last year, package thieves stole more than $8 billion in merchandise from their intended recipients. “Porch pirates,” as they’re commonly known, often scope out porches and doorways for unattended packages, and grab them before the resident is able to bring the parcel inside. The problem is pervasive: Nearly half of all Americans (44%) have had a package stolen in the past, with 17% saying it’s happened in the past three months.
Package misdelivery is also a problem, especially during the chaos of the holiday season. Whether due to an incorrect address or a delivery error, not all packages reach the right doorstop, and some go missing in transit.
As a result, up to 20% of packages aren’t delivered to the right customer on the first try. This trend has major repercussions for ecommerce retailers, who are responsible for supporting the shopper in locating or replacing the item. Shoppers are also understandably frustrated by missing packages, which can transfer into a poor brand experience if they don’t feel that your brand has resolved the issue to their satisfaction.
These logistics challenges are often out of your hands as a retailer—but there are steps you can take to minimize their impact on your brand and your customers.
Strategies for supporting your customers include:
Offer real-time tracking on all of your deliveries and returns
To reduce the risk of package theft, it’s important that your shoppers know the likely time window when they’ll receive a package, so that they can prepare to bring it inside or ask a neighbor to pick it up. By using our order tracking tool (previously Wonderment), you can offer your shoppers access to a branded tracking portal where they can check the carrier status of their delivery at any point in time, and get updates when a package is out for delivery.
Loop tracking offers tracking updates on both outbound packages as well as customer returns, so shoppers can gain confidence in the logistics process through the entire post-purchase journey. Loop tracking can also help you optimize your operational efficiency: Brands that use the tool have seen on average 40% less “where’s my order”” support inquiries, empowering their CX agents to focus their time on more strategic initiatives.
Teach your shoppers how to report a misdelivered package
You can’t fix a problem you’re not aware of, so the first thing you’ll need to do regarding misdelivered or missing packages is to teach your shoppers how to report them. Make sure that you have clear instructions on your site regarding how to report misdelivered packages.
You can even provide detailed subsections on the differences regarding USPS misdelivered packages, UPS misdelivered packages, Fedex misdelivered packages, and more, depending on which carriers your store uses.
Your customer may or may not be able to tell the difference between a misdelivery and a stolen package. However, if the carrier provides a photo of the delivered item, the customer will likely be able to tell if it’s at a different doorstep—a clear misdelivery.
Conversely, if the customer has a video doorbell, they should be able to identify if a thief has stolen the package, in which case your brand is not liable for replacement, though the shopper can contact local authorities for support.
Provide instructions for how to return a misdelivered package
With misdelivered packages, or stolen packages, your shopper will be looking for a replacement—and, unless the carrier can track down the misdelivered packages, it will generally be on you as the merchant to replace them.
Because misdeliveries sometimes happen, it’s a good idea to provide instructions on your site regarding how to return a misdelivered package. If someone who isn’t your original customer is on the receiving end of a misdelivered package, they may want to try to find out how to go about getting that package to its intended owner themselves.
Explain the misdelivered package claim process
Because of how often packages are misdelivered, it’s critical to make sure that every delivery you send out includes shipping insurance, which will pay for the replacement cost of the item in the event that it goes missing. While most major carriers include free liability coverage for up to $100, it may be worth signing up for a third-party shipping insurance policy that includes more flexible terms, much higher coverage limits, and faster reimbursement. That means, if a package is lost, you’ll be able to reimburse them for the value of the item, and expedite a new order to your shopper.
If you do have shipping insurance, you’ll need to provide detailed instructions for your shoppers to use when initiating a misdelivered package claim.
In some cases, especially if you use a traditional carrier insurance policy, your shopper may need to wait several days to file a claim, just in case it was accidentally processed as delivered ahead of schedule. If your carrier provides photo proof of delivery, the shopper can examine the photo to see if it matches a nearby house, and contact the resident if they feel comfortable, or let the carrier know that it was truly a misdelivered package. In that case, they may be able to get the original package dropped off or redelivered to their house without the need for a replacement.
But if your carrier isn’t able to track down the package, your shopper will anticipate getting a replacement item free of charge. In this case, providing a great shopper experience is important: You should provide a replacement of the original item within an expedited time frame if possible. Even if your brand wasn’t responsible for the original loss, you want to ensure that the shopper doesn’t have to pay twice.
Send a replacement package or offer an exchange
In most cases, your shopper will want you to immediately replace the misdelivered package. But if they needed the item for a specific event and the date has already passed, they might decide to request a refund instead.
That’s when your brand really loses out. Not only are you losing the profit from the item—but you’re also losing the ongoing relationship with that shopper, and the chance to drive ongoing revenue from them and their network of friends and family. That’s why, especially for misdelivered packages, it’s important to incentivize exchanges as an alternative to refunds.
(The only exception is when the shopper has a history of filing misdelivered package reports. If this is a frequent occurrence, you can use returns fraud detection tools to identify customers who should not get a refund or replacement item, and set policies for shoppers who abuse your replacement policy.)
By using an automated returns solution like Loop, you can support your shoppers with a self-service platform that enables them to easily report misdelivered packages. They can then directly request a replacement, refund, or an exchange for another item with no need to engage a live support agent.
If a shopper requests a refund, Loop can automatically offer them “bonus credit” that they can use to purchase any item from your available inventory, recommending similar products to the one that they’d previously purchased, or showcasing a catalog of your bestselling items to inspire them.
By offering them additional credit to replace the item they no longer want, a little can go a long way. Stacking an extra $10 in credit on top of a $50 purchase price might mean that they decide to purchase an even more costly item—an $80 sweater, for instance. Incentivizing exchanges also helps you keep the shopper in your pipeline, even after an initial poor experience.
Ensure delivery success during any season
Encourage your shoppers to track their deliveries in real-time, so they can stay alert to misdeliveries and minimize the risk of theft. You can also offer them access to third-party shipping insurance that will protect them from situations like package theft, which won’t be covered by a standard shipping carrier’s insurance policy.
And when shoppers report misdeliveries or missing items, take action immediately: They may have purchased the item as a gift, so replacing the item quickly can be crucial for ensuring a positive shopping experience.
Be proactive in monitoring your packages’ journeys to their customers, and ensuring that shoppers know what to do if things go wrong. That way, you’ll be primed to support them with next steps, and can ensure a great customer experience the second time around.
Want to learn more about Loop? Book a demo today.
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