The Last Mile Matters: Managing Shipping Incidents for Smoother Deliveries

For online sellers, shipping delays are a major worry. Every late or damaged package doesn't just risk one sale, it could mean losing a customer forever. A customer report reveals, 85% of shoppers say a poor delivery experience could drive them away from a brand permanently. This poses a significant risk to online sellers because the post-purchase journey doesn’t end with the sale - it's the beginning of defining an experience that promises customer loyalty.  Shipping incidents can derail it.

What is a Shipping Incident?

A shipping incident is any series of unfortunate events that prevent your shipment from reaching its final destination smoothly. These incidents can happen at any point in the shipping journey—from the moment a package leaves the warehouse till its arrival at the customer's doorstep.

Shipping incidents not only cause delays but can also impact package conditions or prevent delivery altogether. These issues may include damage, loss, or misrouting of packages. While some incidents are minor and easily resolved, others can significantly impact the customer experience and require intervention from the seller or shipping company.

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62% of customers experience these delivery exceptions on online orders.

Impact of Shipping Incidents on Business

Shipping Incidents initially seem like a single issue, but they have a domino effect on businesses—affecting customer satisfaction, financial performance, and brand reputation. Some of these impacts are:

• Customer Dissatisfaction: When shipments are delayed or canceled, it can lead to customer frustration and dissatisfaction. It is even worse when customers are not in the loop about the order status. Customers expect timely deliveries and clear communication. When these expectations aren't met, it can lead to a loss of trust and loyalty. They might feel ignored or undervalued, impacting their relationship with the brand.
• Revenue Losses: Shipping incidents can have a significant impact on a brand’s bottom line. When packages aren't delivered successfully on their first attempt, additional costs get levied in the form of multiple delivery attempts, return processing, and re-shipping. Sometimes, packages can go missing altogether, which means the brand has to cover the cost of replacing them.  All these issues eat into profits, and spending longer intervals on order problems results in substantial revenue losses too.

A survey reveals that 25% of companies spend 15 hours a week and over 20% spend 20-40 hours a week on these issues. This means that order issues are causing a big loss of time and efficiency.

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• Reputational Damage: For online businesses, maintaining a strong online presence is crucial. When customers have bad experiences with shipping, they're likely to share their frustrations online. This can lead to negative reviews on various platforms, from social media to websites. These public complaints can deter potential customers and damage the company's reputation. Even a few bad reviews can have a lasting impact, as many consumers research a company's reliability before making a purchase.

Types of Shipping Incidents

1. Recipient not Available

Missed deliveries can be a headache, especially for packages requiring authentication. When no one's home to sign or provide an OTP, this leads to rescheduled attempts and potential delays. Multiple failed attempts might increase the probability of RTO, which is a logistical nightmare for sellers.

2. Incorrect Address

The complete supply chain process can go sideways if the final destination is oblivious. Address errors can seriously disrupt the shipping process. This might involve a wrong house number, street name, or city. As a result, the probability of RTO or package delivered at the wrong location increases. Both senders and recipients must double-check address details to avoid this issue.

3. Package Damage

The transit phase involves the possibility of shipment damage. The types could be anything— from crushing & tearing to water damage. Factors like improper handling, accidents during transport, or inadequate packaging can contribute to this problem. Damage can range from minor to major issues, making the item completely unusable.

4. Theft or Loss of Packages

The promise of fast deliveries has certainly brought some challenges with it. Porch piracy- the theft of unattended packages - is a recurrent concern. Meanwhile, logistical complexities can also lead to packages being misrouted or lost in transit. These issues not only frustrate customers but can also damage brand reputation and increase operational costs for retailers.

5. Other Common Incidents

• Custom Delays: International shipments may be held at customs for inspection or due to paperwork issues. This can lead to significant delays and sometimes additional fees.
• Package Tampering: In some cases, packages may be deliberately opened or interfered with during transit. This could be due to security checks or, malicious intent.
• Recipient Refused Delivery: Incidents like rejection from the intended recipient could occur due to multiple factors, such as delayed delivery, receiving the damaged product, or unexpected customs fees to pay

Reasons Behind Shipping Incidents

Shipping problems happen for many reasons. Let’s group these reasons into three main areas.

1. External Factors: These are the incidents outside of the shipping company's control. Bad weather, like big storms, can slow down trucks and planes. Traffic congestion can make deliveries late. Events like protests or natural disasters can cause shipping disruptions in some areas, affecting delivery schedules and leading to delayed deliveries.
2. Operational Issues: These are the internal problems that arise, where workers might make mistakes when handling packages. Sometimes, communication gaps can cause mix-ups. If there aren't enough workers, especially when it's busy, packages can pile up and get delayed.
3. Technological Failures: A technical glitch within essential tools could lead to shipping discrepancies too. The systems that track packages can break down, making it hard to know where things are. Outdated technologies might malfunction and give wrong information. Machines that sort packages can stop working, slowing everything down.

Ways to Handle Shipping Incidents

For every shipment that goes sideways, there are multiple ways to fix the issue:

1. Contact Carrier

The first step is to talk to the shipping company. They can often help find lost packages or explain delays. They might also offer solutions or compensation for damaged items.

2. Inform the Customer

Notifying customers at every stage keeps them in the loop. Let them know about any problems quickly and clearly. Explain what you're doing to fix the issue, as good communication can help keep customers happy even when things go wrong.

3. Resend Package

Sometimes, the best solution is to send a new package. This works well if the original package is lost or damaged. It shows the customer you care about making things right.

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83% of customers feel more loyal when brands resolve their issues.

4. Issue Refund

Although it should be considered as the last resort, if the package can't be delivered or the customer is unhappy, giving their money back might be the best choice. This can help maintain good customer relationships, even when shipping goes wrong.

Minimize Shipping Incidents With Eshopbox

• Eshopbox utilizes advanced packaging techniques and clear labeling systems to secure products during transit, reducing damage risks and logistics errors across all channels.
• Eshopbox implements proactive risk management strategies, including shipping insurance, real-time tracking, and address verification, to enhance delivery success rates for each sales platform.
• Eshopbox data-driven approach to optimize the entire fulfillment journey—from picking, and packing to returns handling, ensuring smooth operations across all your sales channels.
• Eshopbox maintains an order accuracy rate through diligent quality checks, minimizing processing errors and potential returns for every marketplace you sell on.
• Eshopbox provides flexible delivery options and continuous shipment visibility, improving overall logistics efficiency and customer satisfaction.

Bottomline

Every business faces shipping challenges now and then, but handling them smartly is key to keeping customers happy and growing your business. Here’s what to keep in mind:

• Partner with a reliable 3PL to increase transparency and efficiency.
• Upgrade with technology to reduce delays and prevent damage.
• Communicate clearly with customers when issues happen.
• Have a plan ready to quickly solve shipping problems.

Implement these strategies to fix shipping problems and keep your customers loyal. Turn delivery challenges into opportunities to impress, and watch your online business grow.

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