How much are lost & damaged shipments
really costing your store?

Most ecommerce shippers lose roughly 0.5% of shipments in transit and see another 0.5%–2% arrive damaged, depending on category, packaging, and carrier handling. Each incident costs the order value plus the shipping spent to deliver it, so a store shipping 5,000 orders a month at a $120 average order value can see five figures in monthly revenue at risk.

Carriers typically reimburse up to $100 of declared merchandise value plus the shipping cost per incident, provided the claim is filed correctly and within the carrier's deadline. Anything above that $100 cap isn't recoverable through a standard claim, which is why higher-AOV orders leave a bigger uncovered gap.

Filing a claim manually means tracking down proof of value, matching it to the right tracking number, and submitting it inside a narrow carrier deadline, often across UPS, FedEx, USPS, and DHL portals, each with different rules. Most merchants don't have the operational bandwidth to do this consistently, so a meaningful share of legitimately recoverable claims simply expire.

The estimate uses industry-average loss and damage rates rather than carrier-specific ones, so it's directionally accurate for any carrier mix. Your carrier selection is used to label the estimate, not to change the underlying rate. Actual performance varies by carrier and lane.