Navigate the FedEx and UPS Refund Policy

If shipping is a critical part of your small business, then on-time delivery is one of your major concerns.

Sure it is sometimes important that a package get there first thing in the morning, but it is just as important that it get there when you promise your customer it will get there—no matter how many days that is.  That’s why when you use a premium delivery service like FedEx or UPS, you deserve on-time delivery—down to the minute—because you’re paying for it.

Delivery Service Refund Policies & Guarantees

So, did you know that if your FedEx or UPS package arrives more than a minute after the guaranteed delivery time you are entitled to a refund?  In most cases you are—though of course there are a bunch of terms and conditions that excuse late delivery due to nature (think snowstorms), or due to holiday rush (think Christmas).

Learning about these money-back guarantees isn’t easy, nor is filing them.  For example, you might think that you should use the online claims system to file a claim for a late delivery—WRONG!  You need to request the refund via the FedEx or UPS phone or online billing system, not their regular claims system.  All the details are hard to find on the shipper websites, because they are buried in long Terms and Conditions documents.  The FedEx policy can be found in the “Money Back Guarantee” section on this page.  The UPS Policy begins on page 30 of this PDF document.

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Small Business Shipping Claims Solution

If your eyes are starting to glaze over at the thought of navigating the policies and requesting refunds, then you’re not alone.  Many small business owners just accept late deliveries as a part of doing business and never bother filing claims, even though it means leaving money on the table that could go straight to the bottom line.  That’s where a new service called 71lbs comes in. (It’s named for the number of pounds that trigger an added fee for shipping a package.)

Very simply, 71lbs acts as your claims agent for FedEx and UPS.  You enter your account credentials into their system, and it tracks all your shipments, the guaranteed delivery date and time for each, and whether they actually arrived on time.  For all those that do not, the system files a claim on your behalf.  The refund is posted to your shipping account, and 71lbs bills you for half the refunded amount.  If they never file a claim for you, you pay nothing.  Yes you’re only getting half the refund you’d get if you handled everything internally, but you’re also not spending your time policing shipping services.

Big businesses that rely on shipping often have whole departments that do nothing but keep track of shipments, file claims, and request adjustments.  As a small business owner, the 71lbs service is ideal.  Just take a few minutes to set it up, and then don’t give another thought. You may be surprised at the money you actually recover.

After all, if you defaulted on promises you made to your customers, they’d expect you to make good.  Shouldn’t you expect the same from your service providers?

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Lisa Hephner

Lisa Hephner

My name is Lisa, and I'm the Vice President of Knowledge, responsible for the management of corporate, product, competitor, marketplace, legal, and regulatory knowledge, and creation and dissemination of knowledge tools using these assets to PaySimple prospects, customers, employees, and partners.

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