Lost Package tips for Etsy Sellers

If you offer any type of physical product, at some point, you will deal with lost packages, and It may be very frustrating when you receive a message from one of your customers stating that they didn't receive their package, however, the tracking number you provided shows "Delivered."

There are some ways to help your customers in this case, and in this post, I share some things that you can do as a seller if a package gets lost; tips that will help you take care of the customer in a professional way and avoid getting unnecessary 1-star reviews because of the unexpected situation.

I Understand that one of the initial thoughts may be questioning if the customers are being truthful about whether they receive the packages or not. Another thought may be that it is not your responsibility if the package got stolen, lost, or delivered to a different location by accident.

And they are valid thoughts; however, to try to mitigate this as much as I can, I often let buyers know when there are delays in transit that, it is out of my control and that once the order is shipped, the package is handled by a 3rd party carrier.

Lost packages will still occur. In the specific situation where the tracking shows delivered and your client states otherwise, you can go one step further in providing excellent customer service with this 3-step process.

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1. Before giving any possible solution to the customer, I ask them to double-check: It may be obvious, but I check the location on the tracking where the carrier delivered the package, was it in the front door, in/at the mailbox, gate; And I copy and paste that location and politely ask them to check again. I know it might seem redundant, but I would suggest not to expect the client to have done what you would, which is checking all possible places where the package could have been delivered. Sometimes they might be expecting a big box from you, so they open and close their front door, and they immediately give for granted that the package didn't arrive, but it happens that you packed the order in a bag that perfectly fits a mailbox, so when you point out where the package was delivered there might be a chance that it is there! (Believe me, it has happened to me with MANY orders throughout the years!)

Asking the buyer to double-check is just a polite way to start the conversation. If they get back to you telling you that they have "checked everywhere," then I move to the second step...

2. Package Search Request: I never give up on a lost package until I have the ultimate confirmation from the carrier. In this case, I let the customer know that I will be submitting a Package search request to help them locate the package. Most shipping carriers have this option as a resource on their website; my packages are usually shipped via USPS (You can find the package search request in this link). If you use USPS too, you simply need to fill out the form and provide a contact phone and email where USPS can reach back to you; they reply within 1-3 business days. I let the customer know, and I ask them if the package gets delivered within those days to please get back to me so I can cancel the Search request or let USPS know the package was found once they call me back.

Sometimes a neighbor receives the package and brings it back. Sometimes, another person living/working at the shipping location has received the package without notifying the receiver in time. In other cases, USPS finds the package and delivers it within a couple of days. It has happened to me that letting these three days pass while waiting for a USPS resolution has helped the package appear.

By doing this step, which doesn't take more than 5 minutes, you show your customer that you care and that you will help them with a solution.

Of course, if any of the previous situations occur and your client lets you know they have received the package, reply with a message to show appreciation for the confirmation and express how glad you are that they received their order.

3. If the client never finds the package and USPS gets back to you with the confirmation that the package was delivered (depending on which carrier and service you ship the package with, they might have proof of delivery/receipt), then there's no more option than give your client a solution.

Something you need to know as an Etsy Seller is that Etsy doesn’t hold sellers responsible for items that are lost in mail, so in this final step, there are two options: Explain to the customers that you won't cover the loss (which I never recommend as this may upset them and you will end up with a bad review that, in the long term won't help your shop) OR you can offer a replacement (which of course is what I do and highly suggest you doing), However before doing that, I ask the customer to re-confirm the shipping address; IF the shipping address has something missing from the original address they provided when placing the order, I do have to let them know that, unfortunately you don't cover wrong shipping addresses, BUT if the shipping address is correct and matches to the one you received with the order, then you can let your customer know that as the package was never found and USPS may have accidentally delivered on a different location and that even if this is something that it was totally out of your control you will be happy to send them a replacement.

Now, I know this option might feel like you are losing money, but I try not to see it that way; as in any business, you should allocate a budget for returns/damages/lost packages, and that way, you simply handle this as an expense in your P/L. So as a takeaway, get used to budgeting some $ for this type of situation. I know it may be challenging initially, but it is a must in the long run as your business grows.

This 3-step process has allowed me to lower the stress of dealing with lost packages and angry customers and has helped provide excellent customer service, which customers are grateful for; in return (I never asked for it in this situation), but sometimes you will get very positive feedback from a very thankful buyer as you went above and beyond to help them out. Win-win for everyone! You may just have gotten yourself a returning client!

Remember, this type of situation doesn't happen every day; in 2 of my stores, my "lost package" rate is less than 1%, so don't hesitate to follow this process; it's always better to go that extra mile to help your customer than getting one upset for just situation that happens 1(or less)time in a 100 orders! 😉