Why Retailers Shouldn’t Fall Prey to Shipping Refund Waivers6 min read

Major carriers such as FedEx and UPS offer shippers such as yourself the option to claim refunds when they commit a service failure.

Claiming refunds for service failures is a must-do to ensure that you’re not overpaying your shipping carrier. Given that over 15% of parcels shipped through them face service failures and delivery issues (P.S it becomes 2x or even 3x during busy seasons such as holidays).   

Despite all this, both carriers are increasingly showing an unwillingness to provide refunds for their deficient service. 

This is evident in the convoluted refund process and short time window to claim refunds if you’re doing it manually. And if that’s not enough, they have customers sign waivers of Guaranteed Service Refunds and Money-Back Guarantees.   

Before we get into why retailers shouldn’t sign a shipping refund waiver, we’ll start with understanding what FedEx’s Money-Back Guarantee and UPS Guaranteed Service Refund are.

Understanding FedEx Money-Back Guarantee (MBG) and UPS’ Guaranteed Service Refund (GSR) in Terms of Shipping Refunds

FedEx’s Money-Back Guarantee (MBG) and UPS’ Guaranteed Service Refund (GSR) are refund policies within the carrier’s service-level agreements (SLAs) that promises a 100% refund on shipping charges for select service types if a parcel is delayed by even 60 seconds except in exceptional circumstances (natural disasters, weather delays, etc.).

What are the services applicable for MBG and GSR?

FedEx and ups services that are currently eligible for money-back guarantee

Shipping Refund Waivers: Why Retailers SHOULD NOT Fall Prey to Signing Them

Now that we know what a money-back guarantee is, we’ll head right to what money-back guarantee waivers are before we get to the penultimate question.