How to Handle a Delivery Exception in eCommerce

A delivery exception refers to unexpected delays that keep packages from being delivered on time. eCommerce businesses know delays happen. Whether it’s weather delays, a mislabeled package, lack of gate access, or no one home to sign for a package, delays can happen. In most cases, delivery exceptions are resolved in a day or two, so customers don’t need to worry too much. Still, if you’re an eCommerce business, you need a process to handle exceptions, prevent extended delays, and restore customer confidence.

If your eCommerce business is experiencing shipping delays, you want to have some sort of plan to correct these exceptions and prevent money from being lost due to missing or returned packages. This will also keep your customers from being upset and help you work exclusively with more trustworthy and efficient shipping carriers. 

In this article, we will look at the best methods for dealing with delivery exceptions in the eCommerce industry. These suggestions can help eCommerce business owners handle future delivery exceptions and evaluate third-party logistics (3PL) providers to work with. 

What is a Delivery Exception?

In eCommerce, delivery exceptions occur when deliveries cannot be completed on time after the product has already been shipped. Ideally, the carrier will provide the tracking number and contact the store to explain the reason for the delay. Reliable carriers play a crucial role in maintaining an efficient fulfillment process, as you won’t know how the delay impacts he supply chain or customer experience until they notify you. 

eCommerce businesses should keep an eye on delivery exceptions, even when there isn’t much they can do to fix the problem right away. A package might be delayed because of an incorrect label, a closed business, bad weather, or an issue at customs. Delivery exceptions generally involve domestic packages that don’t arrive as expected, while shipping exceptions are more commonly associated with international shipments and customs.

This creates a complicated situation for an eCommerce store involving their customer service response, their communication with the carrier, and their resolution strategy. 

Common Types of a Delivery Exception

Any unexpected event that could delay or disrupt the delivery of a package by a shipping carrier is a delivery exception. There are a few different types of delivery exceptions. Some are minor and can be corrected quickly and easily; others are larger problems that are not so easily resolved. Delivery exceptions might signal larger issues with a third-party logistics provider that need to be addressed before problems expand. The more common types of delivery exceptions include:

  • Delays caused by bad weather
  • An incorrect or incomplete delivery address
  • No one available to receive the package
  • Packages damaged while in transit
  • Delays at customs
  • Missing or incomplete shipping paperwork
  • Unexpected issues with the carrier
  • Vehicle or equipment problems
  • Security concerns during transit

Common Results of a Delivery Exception

When a package has been delayed, no matter who is at fault, a few things may happen. Depending on the scenario that unfolds, a company’s response should change to address the situation. Here are the most likely results of a delivery exception:

1. The package is returned to your store

This is essentially the worst-case scenario in a delivery exception situation because it causes the most delay. Possible causes of this could be an illegible address on the package or a package that gets damaged in transit. If barcodes are incorrect or damaged, they can prevent carriers from scanning the deliveries, resulting in them being returned to the sender.

2. The package is delivered late

If a delivery exception is solvable by the carrier, a package may still make it to its destination after a delay. Common causes of this delivery exception scenario include a locked front gate at a house that prevents delivery completion, a closed business, or a carrier who is behind schedule. If no one is available to sign for the package when the delivery truck makes its rounds, this can also lead to a late delivery. These packages eventually make it to their destination.

3. The package is delivered on time

On-time delivery is a fortunate possible result of a delivery exception. For example, severe weather conditions could cause transports to be grounded, but the carrier might respond by doubling the deliverers when it clears up to get back on schedule. If delivery exceptions happen early enough in the shipment and the problems can be circumvented, they may not result in an overall delay in shipping at all. In this case, the customer would never know the difference.

What is “Delivery Not Attempted?”

In addition to a delivery exception, a carrier may not even attempt the delivery, which also causes a delay. Getting this notice as a business owner can be frustrating since the cause of the delay is likely out of your control, though the result will be perceived as your fault.

To be prepared for this possibility, understand that “delivery not attempted” notices go out when an external factor prevents a carrier from making the delivery on time. This could be due to a mislabeled package, inclement weather, local events, or a national holiday. If a business is closed, the delivery driver may not even attempt to deliver the package until business hours on another day.

Even a guard dog on a customer’s property can cause an item labeled properly, shipped on time, and ready to be delivered on the dot to be marked as “delivery not attempted.”

The Main Causes of Delivery Exceptions

Delivery exceptions can be caused by many extenuating circumstances, some of which we have already mentioned. As an eCommerce store, you should know the possibilities intimately. The better you understand the causes of delivery exceptions, the more you can do about them when they occur.

1. Mislabels

Incomplete, damaged, or incorrect labels can delay delivery while your carrier tries to find the recipient. If your business mislabels the package and causes the hang-up, the package may be returned to you at your expense. However, if the carrier damages the package or misdirects it, you will likely receive a refund from them.

Mislabeling isn’t limited to the package itself. Problems with shipping documents can also send a package in the wrong direction, especially when it’s traveling internationally. With inventory moving across long distances, even a missing barcode, incorrect label, or paperwork error can lead to delays.

2. Local interference

Sometimes, packages reach their destinations on time but cannot be delivered due to local problems. For instance, shippers that do not deliver on holidays may receive the package on time but deliver it late. This is why your store should be aware of holidays in other countries if you ship internationally.

Other types of local interference include adverse weather conditions that delay deliveries. Tornado warnings, hurricanes, hailstorms, earthquakes, or even solid rain can ground planes or stop carriers from making their rounds. Unfortunately for your store, these events are out of the carrier’s control, making refunds for your delays unlikely.

Even animals can hold up a delivery. We mentioned guard dogs, but a carrier can be waylaid by less glamorous obstacles. A stray animal could block their delivery. A swarm of hornets could be in the area and prevent them from making their stop.

3. Customs

If your eCommerce store ships internationally, delivery exceptions can result from delays due to package reviews, import procedures, tariff codes, and more. As we mentioned, these are usually referred to as a “shipment exception,” but they are generally the same thing. A third-party fulfillment company skilled in importing merchandise to your shipping destinations can be a huge help.

4. Security concerns

If your packages contain hazardous materials, the quality of the packaging, labeling, and permits can determine whether they’re flagged as a security concern when they arrive at their delivery location. If the local carriers or port authorities are unsatisfied with the quality of the packaging or labeling, you can receive a delivery exception with no refund.

Looking to reduce shipping delays and improve customer satisfaction? Partner with eWorld Fulfillment to streamline your fulfillment operations and proactively manage delivery expectations.

Delivery Exceptions by Company: FedEx vs USPS vs DHL vs UPS

Different mail carriers handle delivery exceptions in their own way. Ecommerce businesses can adjust their response by knowing the differences.

FedEx

FedEx’s name for a delivery exception is a “status exception.” They contact you with a code explaining the reason for the exception and the estimated delivery date, if applicable. They refresh this information with the most recent cause for the exception.

USPS

A USPS delivery exception usually occurs due to federal holidays halting deliveries or mislabeled addresses. You can sign up through their website to receive text or email updates on your exceptions.

DHL

A DHL delivery exception will be registered as “on hold.”They usually resolve their exceptions within a week, depending on what caused the interference.

UPS

The UPS network is accustomed to handling delivery exceptions. They send businesses updated tracking information, including revised delivery estimates. Note that UPS may send you an update that requires action on your part. This can mean that the carrier needs the correct address or updated information to complete the delivery.

How eCommerce Businesses Should Respond to Delivery Exceptions

Delivery exceptions can happen without being your fault. But your response to the carrier and customer will determine how much damage they cause. These are the main factors to keep in mind when responding to exceptions:

Communication

Communication is paramount. Contact the carrier right away to determine if they require information from you to complete the delivery. Find out the location of the package and try to get an updated ETA.

The customer should be contacted as well, either to get the correct address or to apologize to them for the delay.

Manage refunds

When delivery exceptions result in extra shipping charges or returned merchandise, you may need to issue refunds. If customers no longer want the merchandise, you may have to front the extra costs. Make sure your shipping insurance compensates your business for products damaged by carriers.

Resend merchandise

If customers still want the product even after the delay, you can resend it with a new delivery time. This can require extra shipping costs, but the price of getting the item delivered is likely worth it to resolve the customer service issue.

How to Prevent Delivery Exceptions

There are several preventative measures that can help reduce the frequency of delivery exceptions. The goal is to catch shipping delays before they become unmanageable and result in an extended delay. Taking action quickly to prevent or limit a delay will help keep you in the good graces of your customers. You can help prevent delivery exceptions by paying attention to each of the following steps:

  • Address verification: Double-checking the address before shipping will prevent packages from being sent to the wrong location and causing delayed delivery. 
  • Packaging quality: Poor packaging can cause problems like torn labels, broken items, or barcodes that are impossible to read. Poor packaging quality can lead to delays in delivery.
  • Inventory accuracy: Delays can be the result of customers receiving the wrong items. These deliveries can be further delayed, as the wrong items will be returned and the correct items sent out. Make sure the inventory sent out correctly matches the order. 
  • Shipping automation: Automated shipping prevents human data entry errors that result in incorrect addresses or orders. The use of automation makes it easier to validate correct addresses and invoices. 
  • Carrier diversification: Your eCommerce business should rely on multiple shipping carriers for delivery because reliance on one carrier could result in delays if that carrier is experiencing issues like bad weather or system outages. 
  • Proactive communication: Proactive communication can help to alleviate many of the issues with delivery exceptions. For instance, you can let customers know ahead of time that a delivery is going to be delayed. You can also communicate directly with customers for confirmation of addresses or to get gate codes and other information to help with delivery.

How a Fulfillment Company Helps Manage Delivery Exceptions

Delivery exceptions are inevitable in an eCommerce business of any scale. They can come from an unexpected event, potentially delaying the delivery process. A fulfillment company can help prevent exceptions, insure against them, track them, and respond to them effectively. 

While avoiding delivery exceptions is ideal, how you handle them from both a logistical shipping angle and a customer service perspective determines the extent of the damage they can cause.

Contact eWorld today to optimize your fulfillment services and minimize delivery challenges!

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