Timely delivery builds customer trust, drives repeat business and ultimately impacts the bottom line. However, the shipping process isn’t always smooth sailing. The unfortunate reality is that packages can and do get lost or go unclaimed.
In fact, millions of packages each year fail to reach their intended recipients, with 120 million package thefts happening in 2023. Lost packages lead to frustration, lost revenue and damaged reputations.
This article explores what happens when shipments go missing and offers practical strategies to prevent these costly mishaps.
Lost, unclaimed or undeliverable packages are the three main culprits behind delayed or failed deliveries. Each scenario presents a unique reason for the delay in the delivery of goods.
The path of an unclaimed package involves multiple steps and can vary depending on the courier. It often starts with labeling errors, such as smudged barcodes or incorrect addresses. Sorting machines may misread labels, sending the package on a wayward path.
Rough handling during transit can also cause labels to detach, leaving the package blank. In some cases, packages are stolen or misplaced at distribution centers or delivery hubs.
Generally, if a package is undeliverable, the carrier will attempt to return it to the sender. If the return address is incorrect or the sender doesn’t accept the returned package, it becomes unclaimed.
Unclaimed packages are held in warehouses for a specified period, typically ranging from 30 to 90 days. If the package remains unclaimed beyond this time frame, it may be auctioned off or disposed of, depending on the carrier’s policies and the package contents.
An occasional lost package seems like a minor inconvenience. However, unclaimed and undelivered packages can have far-reaching consequences for businesses.
The most immediate impact of lost packages is financial. Undelivered goods equate to lost revenue. There are additional costs associated with tracking down missing items, reshipping replacements or issuing refunds. Depending on carrier contracts, the business may be responsible for return shipping or holding fees. Over time, these expenses add up.
A lost package is incredibly frustrating for customers eagerly awaiting their goods — 85% of consumers say a poor delivery experience would prevent them from reordering from a company. Whether you’re an e-commerce business shipping to the consumer or a product manufacturer shipping to retailers, late or missing packages reflect poorly on the business and erode trust. If it happens repeatedly, customers will likely switch to competitors, impacting retention rates.
Persistent shipping issues can tarnish a brand’s reputation. Disappointed customers are likely to share their negative experiences through online reviews and social media posts, influencing potential customers’ perceptions. If you ship to retailers, your reputation may also take a hit because retailers share their delivery experiences. Sustainable delivery problems can cause significant damage to brand reputation that’s difficult to recover from.
Lost and unclaimed packages create operational ripples felt across the organization. Customer service teams face increased workloads as they field inquiries and complaints related to missing shipments. Tracking and resolving shipping issues pulls employee attention away from regular tasks. Additionally, supply chain interruptions can throw off inventory management, leading to stockouts or overstocking.
In some cases, clients may take legal action, especially if the lost items are high-value or time-sensitive. Frequent claims for missing packages can cause insurance premiums to rise or result in loss of coverage.
Proactive measures can reduce shipping errors and delays. Here are some proven strategies to help you make shipping reliability improvements:
Investing in systems to monitor packages throughout the shipping process is a simple way to mitigate shipping problems. Tracking technology provides visibility throughout the delivery journey, making it easier to locate missing packages. These systems also offer your customers peace of mind, as they can follow the progress of their products. Tracking provides data to identify problem areas in the shipping process that need improvement.
Partner with reputable courier companies known for dependable service. Choosing a reputable provider with a proven track record of reliability can dramatically decrease lost packages. Research courier options, vetting them on the following:
Sending a package to the wrong address is a surefire way for it to get lost. Proper addressing is one of the essential ways to reduce shipping errors and delays. Implement systems to verify customer addresses as they place their order and before you ship the products. These processes may include standardizing address entries, using address validation tools or reaching out for confirmation.
Low-quality, damage-prone packaging is a major culprit of lost and unclaimed packages. One way to mitigate shipping problems is to invest in sturdy, well-designed custom shipping boxes. Better packaging improves product protection and can provide additional tracking capabilities, such as an embedded tracking QR code. Proper packaging also reflects well on your brand.
Keeping customers in the loop about their order status through proactive updates and clear delivery instructions reduces failed attempts. If a delay occurs, promptly communicate the issue and take steps to resolve it to prevent frustration and minimize anxiety or confusion.
Lost and unclaimed packages are a drain on business resources and reputation. Mitigating shipping problems starts with choosing the right packaging partner. Bolt Boxes offers custom corrugated cardboard boxes to safeguard your products during shipping, allowing you to take an extra step toward reducing the odds of lost items and satisfying your recipients.
With over 60 years of expertise, we deliver industry-leading lead times, exceptional print capabilities and sustainable, 100% recyclable materials. Contact us today to enhance your shipping reliability and protect your bottom line with our innovative shipping boxes.
