Did you know that most delivery exceptions are not caused by the delivery carrier? Thus, it is incumbent on you, the shipper, to make the difference in proactively avoiding every delivery exception that will affect your customers’ delivery experience.

So, what proactive measures can shippers take to prevent delivery exceptions? In this article, I’ll will help you gain a better understanding as well as provide you resources to enhance your ecommerce business’s delivery experience. Also, I’ll look specifically at the detrimental effects of delivery exceptions, explain their various types, and offer strategies to prevent them. Most importantly, I’ll provide you with resources on how to analyze your shipping data to avoid such issues and how to respond appropriately when they do occur.

1. The Impact of An Delivery Exception On Your Ecommerce Business.

Delivery exceptions can have a major impact on your ecommerce business. Not only do they cause customer dissatisfaction, they also result in lost sales and increased costs. To minimize the impact of delivery exceptions, it’s important to understand the root cause of the problem and put measures in place to prevent them from occurring in the first place. 

a) What Is A Delivery Exception?

The definition of a delivery exception is complicated. This is because even though the last-mile carrier delivers the shipment, it is not always the carrier’s fault when a delivery exception occurs. A major reason for this is that the shipper is who set the promised date for the delivery with the customer. See below for a full explanation of what a delivery exception is.

1) First, let’s talk about promised dates.

A delivery exception is predicated on when the shipper promised that the shipment would be delivered. So if you promised delivery in two days and it arrives late, this is a delivery exception. Now on the other hand if you give a longer estimate and it’s on-time, there is no exception. It is unfortunate that many shippers solely rely on the carrier’s promised date. In most cases, shippers will just regurgitate to their customers the promised date provided by the carrier. Be mindful of doing this as many delivery exceptions are not due to the carrier’s delay, nor is it their fault.

2) A Delivery Exception Is Not Necessarily the Fault of the Delivery Carrier.

I think it is important to clearly define what a delivery exception is because it is not always the last-mile delivery carrier’s fault. To explain, the definition below encompasses both the shipping order fulfillment operation as well as final-mile delivery carrier. Another characteristic of a delivery exception is that it does not always result in a late delivery. So, especially for a proactive shipper and carrier, a delivery exception does not need to result in a disappointed customer. To summarize, below is my definition of a delivery exception: 

“A delivery exception is an unexpected shipment status event that when it occurs may delay the transit of a shipment. This in turn, may prevent on-time delivery or even may prevent delivery at all.”

a) Three Major Ways That Delivery Exceptions Can Affect Your Business.

One Bad Customer Delivery Experience Leads To 3 Disastrous Results: Both Now And In The Future.

Did you know that one bad customer delivery experience can lead to 3 disastrous results: both now and in the future? Indeed for ecommerce businesses, many think customer delivery as an afterthought and they leave it up to the delivery carriers. However, here’s the thing: poor delivery experiences can have a serious cost to your brand. Specifically:

Negative Impacts of a Delivery Exception

• Poor customer retention
• Increased costs, reduced operational efficiency
• Negative reputation, loss sales

For more details on the consequences of a bad customer delivery experience, see my article, One Bad Customer Delivery Experience Leads to 3 Disastrous Results: Both Now and in the Future.

“The key is to set realistic customer expectations, and then not to just meet them, but to exceed them—preferably in unexpected and helpful ways.”

Richard Branson

2. Shipment Delivery Exception Types and How To Avoid Them.

Delivery exceptions can be caused by a number of factors, including incorrect addresses, delivery delays, and damaged items. To reduce the number of delivery exceptions, it’s important to have processes in place to verify customer information and ensure that items are shipped on time and in good condition. Just do not assume that all delivery exceptions are the fault of the delivery carrier. They are not. Below is a breakout of different types of delivery exceptions, who causes them, and who can prevent them.

“Never promise more than you can deliver, and always deliver what you promise.”

Jim Casey, Founder of UPS

a. Delivery Exceptions Caused By The Shipper.

First, shippers cause delivery exceptions to occur when the shipper makes an error that results in a delayed or failed delivery. Specifically, the most frequent types of shipper-caused exceptions are incorrect address information and bad barcode labels on packages. Indeed, this should not happen. Other issues caused by shippers include poor packaging and inefficient order fulfillment operations. For international shippers, a major shipper-induced exception is incomplete customs paperwork when the receiving country processes the shipment through customs. 

Without a doubt, keeping electronic records of delivery problems can help shippers avoid them in the future. However, many shippers don’t do this, so they have the same problems again and again. Also, many of these problems can be with certain addresses or types of packages. Or they can be because of equipment issues, like a poorly maintained label printer. To avoid these problems, shippers should use automated tools to verify delivery addresses and follow the transportation carrier’s guidelines for labels and packages.

b. Last Mile Delivery Exceptions.

Last mile delivery exceptions occur when the delivery driver faces an issue at the final stage of delivery. The most common examples include business closed, driver cannot access delivery location, no one to sign for the package, or customer refuses delivery. Also in some cases, shippers do not take into account regional holidays in calculating promised date for their customers.

Especially for your repeat customers, there are things you can do to avoid these delivery exceptions. The easiest delivery exception to avoid is “business closed”. In this case, have your systems up-to-date with customer’s delivery hours. In particular, don’t send an expensive next day express 8 a.m. package to a business that does not open till 9 a.m. Also, if you are getting a lot of last-mile delivery exceptions for a given location or even a postal code, consider changing the delivery location to an access delivery point or even change the delivery carrier.

c. Shipment Exceptions Due To The Fault of The Carrier.

Carrier exceptions occur when a carrier makes an error that results in a delayed or failed delivery. Common examples include late or missed pickups, incorrect routing, mechanical failures and just plain-old mismanaged shipments. In some cases, parcel carriers will issue you a service guaranteed refund when the late delivery occurs. This may help offset costs, but it is still a delivery exception where you did not meet your delivery promise to your customer.

To avoid carrier exceptions, work with your carriers to see what can be done to minimize shipment exceptions. This can include working with parcel carriers to optimize the latest pickup times at your facilities. Also, review delivery exceptions to find patterns where a carrier has low on-time performance. Many times this can be isolated to a specific postal code or even a specific type of package. In some cases, another transportation carrier may be able to do a better job. For example, USPS may have a better delivery service for a rural area or for a package that can fit in a mailbox.

d. Weather and Uncontrollable Delivery Exceptions.

Data Analytics You’ll Need For Unsurpassed Carrier Delivery Results

Weather and other uncontrollable delivery exceptions occur when the delivery is delayed or fails due to conditions beyond the control of the shipper or carrier. Common examples include bad weather, natural disasters, or civil unrest. Additionally for international shipments, this can include select countries where they have slow and burdensome customs processing. 

In the case of uncontrollable delivery exceptions, there are still things you can do. First, be proactive and set expectations with customers that shipments will take longer in certain situations. If you have flexibility on when to ship, then in some cases you could just delay shipping until the situation clears up. For example, if there is flooding in east Texas, then just delay shipping packages until things clear up and carriers operations are back to normal.

Indeed, data analytics is essential for identifying delivery exceptions. For more tips on identifying delivery exceptions and taking actions to resolve them, see my article, Data Analytics You’ll Need For Unsurpassed Carrier Delivery Results.

3. So A Delivery Exception Occurs, How To Handle It.

If a delivery exception does occur, it’s important to take steps to rectify the issue quickly and efficiently. This can include offering a refund or a replacement item. More importantly, just provide outstanding customer service and support to ensure that your customer’s concerns are addressed. Additionally, it’s important to document the incident and use the data to improve processes and prevent future delivery exceptions. 

a) Remember, All Delivery Exceptions Do Not Result In A Late Shipment.

Also, remember that all delivery exceptions do not result in a missed delivery. Below are the following scenarios that can occur with a delivery exception.

• No Delivery Delay. Sometimes a delivery exception occurs, but the carrier is able to overcome the issue and still deliver the package on-time. So in this case no action is required.
• Return To Sender. In this situation you need to process the physical return package. More importantly, you have a customer service issue where you need to address the needs of your customer. This could include reshipping the item, process a refund for the customer, and possibly take other actions to appease the customer.
• The Shipment Is Delayed And In Most Cases Gets Delivered Late. In this case, be proactive to prevent the shipment exception from actually being delivered late. Once it is late, you need to have effective procedures in place to address customer concerns in regard to late shipments. See below for more details.

b) What To Do If Shipment Is Going To Be Delayed Or Is Late.

Here are some steps to take when you identify a delivery exception.

STEP 1: Call The Carrier When a Delivery Exception Occurs.

By doing this, you may be able to get more information and even work with the carrier to still get the package delivered on-time. For example, you could provide a corrected address to the carrier, When contacting the carrier, you will need to know the tracking number and possibly the delivery location. Below are telephone numbers of major parcel carriers in the U.S.

• FedEx: 1-800-GoFedex  (that’s 463-3339)
• UPS: 1-(800) 742-5877
• USPS: 1-800-ASK-USPS® (that’s 275-8777)

STEP 2: Contact The Customer.

It is best to be proactive, so call the customer early. In some cases, you may have enough information to work with the customer to avoid or minimize the adverse impact.

STEP 3: Decide The Best Course of Action When a Package is Late. 

You should have a policy in place on what to do when a shipment is late. This would be followed by your staff and include topics like when to contact a customer, how to work with a carrier, when to offer credit or some type of good will to compensate your customer.

For more on how to handle delivery exceptions and work with your customer after the fact, see Extensiv’s Delivery Exception: The Ultimate Guide and Simplfulfillment’s  What Is a Delivery Exception and How to Handle It as an eCommerce Store Owner?

“Anybody can deliver packages – from the small boy in the neighborhood on up to the most extensive delivery systems in the land. The one thing we can have to offer that others will not always have is quality.”

Jim Casey, Founder of UPS

4. Analyzing Post-Delivery Exception Data to Improve Service Performance. 

Also, see my article, The Horrific Delivery Exception: Exploit Shipment Data To Eliminate, Make Your Customer Experience Better. This has 4 insightful tips for eliminating delivery exceptions. Specifically, these tips will help you to gather and analyze post-delivery exception data in order for you to effectively reduce delivery exceptions.

Tips include:

• Understanding the Impact of Delivery Exceptions on Customer Experience.
• The Need to Measure, Diagnose the Root Cause of a Delivery Exception.
• Every Shipment is a Gold Mine of Data But Where Do You Get the Data From?
• Who Can Help You Eliminate Delivery Exception Problems?

For more ideas and references on reducing your delivery exceptions, see Bringg’s How To Handle a Delivery Exception For Greater Efficiency and Customer Satisfaction, Project44’s Delivery Exceptions: What They Are And How To Handle Them, and Optimoroute’s What the Heck Is a Delivery Exception? (And How to Avoid It). Also, for more on how a shipping data analytics company can help you, see ShipMatrix.

Measuring Ecommerce On-Time Delivery: Instructive Advice To Best Avoid Pointless Mistakes

For more from SC Tech Insights, see articles on transportation.