View Full Version : Question about Chargebacks for Delivered Item

05-04-2009, 11:16 AM
I am located in the US and recently shipped an item to another area of the US. The person claimed they never received it although the delivery confirmation said they did. When they contacted me I told them to contact their local Post Office which they did. They simply said that the post office stated that maybe it was delivered to the wrong mailbox and to check with their neighbors which they said they did not want to do.

Then I contacted my local post office to start an investigation. At this time the customer got upset saying simply ship another item to them (video game). I told them I can't do this since an investigation was on. They then stated that tell the post office to just send the item back to me when found. I stated that I could not do this since the post office stated if the item is found it most likely will be delivered to them. They stated that I had 24 hours to ship another game or the credit card company will be called and they'd dispute it.

Sure enough a couple days later (about a week after the item arrived) I get the chargeback. Out of 460 items shipped this was my first chargeback. I contacted the credit card company to dispute it. I gave all email correspondence to them including proof of delivery. Unfortunately I was told that the delivery confirmation does no good and I need a signature or I will lose any chargeback where a person claimed they did not get the item.

I was puzzled because I had the idea that a delivery confirmation is fine and that a signature confirmation is only needed on items of $250 or more so that is how I handled it, only signatures on $250 or more. I think a signature confirmation is around $1.85 so I can't afford it on all items. I think anything of $100 or more I'll put it on and not the others figuring it's a cost of business.

I just am posting this to get opinions from others. How have you done with chargebacks such as these? Do you usually ship another item or is there another way to fight it? I am concerned customers will get upset if every package, no matter how small, requires a signature plus some may simply not accept the pkg (for example if they are not home) and I may get too many returns.

05-05-2009, 01:32 PM
Look at the small business options that the post office offers (not just the general public walking up to the counter service or drop in a mail box).
IE: USPS - Welcome to Business Mail 101 (http://pe.usps.com/businessmail101/) or USPS - The United States Postal Service (U.S. Postal Service) (http://www.usps.com/business/)

Make sure anything that has value - has some insurance (in case of delivered to wrong address/thief etc...).
USPS includes:
• Provides up to $500 indemnity coverage for a lost or damaged item.
• Automatically includes Delivery Confirmation™.
It's $2.15 for $100 (less 0.80 if you ship min 10,000 parcels a year)

Find a economical "sign on delivery" service for higher value goods.

Regardless - pass the cost onto the customer. Any customer refusing is cheap or criminal or both.

Sending stuff without insurance or lack of signature - you better prepare yourself to lose stuff at some point - Cause it will and does (did) happen.

It the cost of doing business - laydown your policy and specify it on your site. Ether they have to wait or you charge a 2nd time and then remberse when claim come in. Or whatever you want to do.

05-05-2009, 05:12 PM
Unfortunately, there are going to be these situations where the vendor (you and me) will lose. We do everything right, and then we lose when there is a single client with a problem.

In fact, 1 out of 460 is a pretty good success rate. Many retailers are looking at about 2% or more of chargebacks, many of which are fraudulent.

Good luck.