Chargebacks with reason "Product not received"

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New Member
1 0 0

Hi! We started selling in the US some months back from a US based warehouse. We've implemented several of Shopify's recommendations for avoiding fraud orders and it seems to have helped, but we still have one main reason for chargebacks that currently feels somewhat out of control for us.

We use USP/USPS for all our shipments. This is mainly because our 3PL partner recommended this solution and we haven't been able to explore options (which I guess is what we should do now, so feel free to share any insights).

Most of the chargebacks we have now is due to "Product not received". USP claims it has been delivered and the customer claims the opposite. We are stuck with the full refund amount + chargeback fee + lost product. We basically take 100% of the risk. USP has not been very helpful as they stick to their claim of having successfully delivered the package.

Does anyone have anything to share around how to prevent these issues? Do we really have no rights as a small business when USP looses a package? Or if it actually was delivered and the customer claims it wasn't?

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Shopify Staff (Retired)
Shopify Staff (Retired)
12 0 3

Hi Kenneth!

Chargebacks can be very frustrating. Stripe has some good suggestions for dealing with chargebacks, and gives the key points you should cover in your chargeback response. When you submit your chargeback response, make sure to include UPS's shipping confirmation if they've indicated they successfully delivered the package. This is extremely important, as it can prove to the credit card company that the product was delivered. If you insist on a signature for delivery, this will help your case as well.

If the package was lost by UPS, you can file a claim with UPS for the value of the shipment, which will help decrease your loss. 

One thing you may want to consider when shipping products to your customers is to ship to only the verified billing address of the customer, as opposed to an alternate shipping address. This will decrease the odds of a customer claiming the order is fraudulent. 

You may also want to look into chargeback protection, like what is offered by Signifyd

I hope this helps!

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New Member
2 0 0

Ken,

 

Are you shipping with a tracking number ?

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Explorer
109 0 28

Hi Kenneth!

I feel your pain regarding chargebacks. Jasmine has some fabulous advice for you. I want to second her recommendation of Signifyd; I use this at work every day. 

Signature confirmation will also help... without it, it's very hard to prove that the package arrived. Another consideration is an insurance company like Shipsurance (if your margins can cover it). 

Also, shipping to billing addresses only is an option -- but it's good to have a manual override. Especially for large purchases and around the holidays, it's useful to be able to contact your customer to confirm the purchase. Good luck!

 

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Shopify Partner
555 1 14

One way you can stop this is by collecting evidence as to whether the shipment has actually reached or not. To do that, you enable the signature option for UPS shipments. This way the order will always be delivered only when the customer signs it. You can try the Signature option with the multi carrier shipping label app

 

Another option would be to change your shipping carrier to FedEx or DHL and then see if that helps! 

By the way, are all the complains coming from UPS alone? Or are you also getting complains from USPS?

Product Owner @ PluginHive
FedEx shipping | Multi-carrier shipping | Shipment Tracking | Australia Post shipping
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