What is a Delivery Exception and How E-commerce Business Can Handle It?6 min read

Shipping out a parcel is not a cakewalk. You don’t need major issues such as packages getting lost or damaged, even small incidents like a ‘delivery exception’ can hurt your customer relationships and lead to increased costs. 

To better handle a delivery exception, we’ve come up with this article that starts with the basics: what do they mean, why do they happen, and what can you do about it?

By being aware of potential delivery exceptions, you can take proactive steps to:

  1. Keep them to a minimum
  2. Mitigate their negative impact on your customers and business

What Does a Delivery Exception Mean?

A ‘delivery exception‘ is an umbrella term that generally applies to incidents where your packages in transit face hindrance and take longer than expected to reach your customers’ doorstep.

In simple terms, this is an indication to the recipient that:

  • The package has crossed its intended delivery timeline
  • This is not a case of a delay at the hands of the carrier
  • The courier will deliver the package soon (based on the reason for the exception).

We’ll break down delivery exceptions further to get a better context.

Why do delivery exceptions occur?

We touched upon how in most cases, exceptions are predictable and happen due to external influence. But how exactly? Here’s how.

  1. Failed deliveries – Also known as missed drop-off. Deliveries are marked incomplete due to recipient or adult unavailability at the drop-off location to sign and receive the package when the delivery person is unable to reach the particular location due to incorrect address, road blockage, etc. 
  2. Label error – When the address written on the label is unrecognized or is at an undeliverable location or the label is so damaged that it is impossible to read the barcode, etc.
  3. Man-made causes – Packages are prone to be damaged at sorting facilities and at times, the carrier would abstain from making the delivery citing this. Applies to international packages that get stuck at customs clearance as well.
  4. Natural causes – When storms, wildfires, and other severe weather-related phenomena cause the package to be held back at the facility for safeguarding.
  5. Federal Holidays – When carriers refrain from making deliveries on particular days due to federal holidays in the country of origin or destination.

These are some of the most frequent reasons behind the carriers getting an exemption from fulfilling the delivery. They are absolutely valid and in many cases, you can choose to ignore them with so much so as a “It’s just one day, the delivery will be made tomorrow“.

However, can you afford to do that? is the question. And that question is what led e-commerce businesses to take the initiative to address delivery exceptions for more reasons than one.

Why Is It Important For E-Commerce Businesses To Address A Delivery Exception?

  • Low customer satisfaction metrics – Unattended delivery exceptions can quickly affect your customer satisfaction metrics such as retention rate and lifetime value. Don’t forget that in the worst-case scenario, your customer might even opt for a return and cost you dollars. 
  • Frequent WISMO inquiries – Even when the delivery exception is minor, the customer who isn’t aware of it constantly bombards your support reps with WISMO calls and consumes all of their time. This is because your customers feel missed out of the loop regarding their orders and are wondering why there isn’t an update.

The cost of delivery exceptions for your business is evident. Therefore, it is important to handle them to improve customer satisfaction and brand reputation, foster customer loyalty, gain a competitive edge, and ultimately inspire customer loyalty.

To make things easier for you, we’ve also come up with some of the best ways for you to handle delivery exceptions.

How To Handle Delivery Exceptions?

Most e-commerce businesses take this myopic approach of resolving delivery exceptions only when your customers are impacted by them. However, given the high expectations of today’s customers, it doesn’t matter how quickly you solve it because the damage is already done. Therefore, all you have to do is comply with your customers’ expectations — solve delivery exceptions even before they become an issue.

Through integrated solutions and metrics, you can be proactive when it comes to handling delivery exceptions and thereby set them up for a great delivery experience. 

Keep your customers informed about potential exceptions

Start by informing potential delivery exception-causing incidents such as carrier strikes, federal holidays, weather-related issues, etc. on your homepage and product page to let customers know that their orders might face issues and avoid disappointments.

The next step involves making use of real-time tracking and automation. For instance, you can extend real-time tracking data with your customers via a custom-built, branded order tracking page for your customers.

Real-time tracking data also provides you predictive alerts when a delivery exception occurs. You can use this head start to send automated and customized shipping notifications via email, SMS, or Whatsapp to cut down WIMSO calls and thereby free up your support team’s time.

Handling delivery exceptions: The aftermath

Let’s assume the delivery exception happens, what now?

First, promptly acknowledge the exception by informing your customer about it. You can then follow up with clear and transparent communication regarding the nature of the exception by rerouting or rescheduling deliveries based on convenience to manage customer expectations.

If the exception is major, possibly due to packages that are lost or damaged, then you need to consider shipping insurance into your existing business practices.

There are a variety of third-party shipping insurance providers with their own set of policies and coverages to provide you with peace of mind, especially when shipping valuable or fragile items and to help you cut down additional costs.

Preventing delivery exceptions from occurring in the first place

Delivery exceptions can happen due to external causes and at times inevitable. But that doesn’t mean you do nothing about it. As an e-commerce merchant, you have the power to cut down exceptions in occurrence.

Ensure potential causes for delivery exceptions such as address information, shipping labels, packing content, etc are all proper and accurate.

Track your parcels regularly, audit your shipping invoices, and claim refunds to monitor carrier performance metrics such as delivery times and error rates. This allows you to hold carriers accountable, make better shipping choices, and minimize shipping errors in the long run.

Bottom Line

While delivery exceptions are inevitable in occurrence, addressing them promptly is not only possible but also essential for ensuring a positive delivery experience.

By acknowledging and resolving issues quickly, you can effectively minimize customer frustration, maintain trust, and uphold their reputation for reliability and customer-centricity. Remember, prioritizing proactive communication and transparent resolution processes can go a long way in turning delivery exceptions into opportunities that strengthen customer relationships and foster long-term loyalty.