Shipping best practices for preventing losses.

Apr 10 2018 | PayPal editorial staff

As a business owner, learning how to avoid losses is beneficial to you. Here are some simple and effective tactics you can use to help prevent or minimize Item Not Received losses.
Smart tips and quick guidelines that can lead to successful selling.

Ship with online tracking.
Use a shipping service that provides online tracking to help confirm the item was delivered. Standard shipping receipts only show that an item was shipped. Online tracking services prove the item was delivered.
  • If the total sale is for $750 or more, obtain signature confirmation to confirm your customer received their order – the nominal expense is well worth it, plus it’s a PayPal requirement.
  • Use your discretion when shipping internationally using First Class Mail International, because this shipping service is not accepted under PayPal’s Seller Protection Policy.

Order shipping insurance.
Many things can go wrong in transit. That’s why it’s important to purchase shipping insurance for items that are fragile or expensive.

Shipping insurance serves two purposes. It:
  • Insures the item in the event it is lost or damaged.
  • Includes tracking and delivery information so the customer can see that the order is en route, and you will know when the package was delivered.

In case of a shipping problem, file an insurance claim with the shipping company.
You, your customer, or the shipping company can report claims. Contact your shipping company for detailed instructions on how you should proceed with a claim.

Be aware of insurance exceptions.
Liability for loss or damage may be limited depending on the type of package, the declared value, and/or the shipping company. Talk to the shipping company to ensure proper coverage.

Delay shipping high-risk orders.
Delay shipment for new orders that are expensive and in demand for 24 to 48 hours, especially when shipping internationally. Use caution when shipping overnight. Fraudsters will often ask for overnight shipping so that they can resell expensive merchandise as quickly as possible.

Use your own shipping service.
Do not use your customer’s shipping company when mailing orders. Packages can be rerouted by the customer to other addresses after shipment and won’t be covered by Seller Protection.

Use care when choosing or acting as a drop shipper.
Because you’re responsible for delivering what the customer orders, it’s critical to choose a reputable drop shipper to help avoid losses. Be wary of drop-shipping companies located in high-risk countries. If you’re a drop shipper, have a vetting process in place for all suppliers. This should include inventory management and product guarantees (to ensure that items are in stock and you’re delivering high-quality merchandise).

Issue returns quickly and let customers know when you are out of stock/inventory.
If an item is out of stock, remove the listing or update it to reflect the out-of-stock status. Provide an estimated in-stock date or clearly indicate that customers who choose an out-of-stock product are placing an advance order.

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Was this content helpful?

We’ll use cookies to improve and customize your experience if you continue to browse. Is it OK if we also use cookies to show you personalized ads? Learn more and manage your cookies