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Damaged in Transit: Refund, Reship or Store Credit?

TL;DR

Ask for photos of the item, box and label, then choose: reship if you have stock and the customer still wants it, refund (full or partial) if not, or offer store credit as an option. Keep the photos for a carrier or insurance claim, and fix packaging if damage repeats.

When an order arrives damaged, get photos first, then pick the fix that suits the item and the customer: a replacement, a full or partial refund, or store credit. Reply within a day, keep the evidence for a carrier claim, and look at your packaging if the same damage keeps happening.

This is part of our order protection guide.

What should you ask for first?

  • Photos of the item showing the damage.
  • Photos of the box, outside and inside, including the packing material.
  • A photo of the shipping label.
  • A short description: what is broken and whether the item still works.

These photos let you decide quickly, support a carrier or insurance claim, and show you whether packaging was the cause.

Refund, reship or store credit?

SituationBest fix
In stock, customer still wants itReship a replacement
Out of stock or time-sensitiveFull refund
Item usable with a cosmetic flawPartial refund, customer keeps it
Customer happy to choose something elseStore credit, offered as an option
High-value item, carrier or insurance claim neededReship or refund, and keep the item and box until the claim settles

Let the customer choose where you can. Store credit should be an option, not the only answer. See reship and store credit for more.

How do you recover the cost?

  • Carrier claims for damage the carrier caused: file with photos and proof of value within the carrier’s window. UPS, for example, accepts claims within 60 days of the scheduled delivery date.
  • Insurance: if you insured the parcel, file with the insurer and keep the packaging until they say otherwise.
  • Protection fees: on a self-funded protection program, smaller damage claims are paid from the fees customers chose to pay.

What should your policy say about damage?

Put the rules in writing so every customer gets the same answer:

  • Filing window: for example, report damage within 7 days of delivery.
  • Evidence: photos of the item, box and label.
  • Returns: whether you need the damaged item back, and who pays for it.
  • Resolution: replacement, full or partial refund, or store credit.

The free claim policy generator builds these sections for you.

How do you prevent repeat damage?

Track damage claims by product and carrier for a month. If one product or route keeps breaking:

  • Improve packaging: double boxing, corner protection, more void fill.
  • Change the box size so items cannot move.
  • Switch service or carrier for fragile items.
  • Label fragile items and test with a drop test before shipping in volume.

What should you tell the customer?

Apologize, confirm what you will do and by when, and do not ask them to deal with the carrier. For example: “Sorry it arrived broken. Thanks for the photos; we’ve sent a replacement today and you don’t need to return the damaged one.”

To add a claims page and protection fee to your store, see Sam Shipping Protection. For lost and stolen orders, read what to do when a package is lost.

Frequently asked questions

Should I ask customers to return a damaged item?

Only if you need it for an insurance or carrier claim, or it has resale value. For low-value items, the return shipping often costs more than it is worth; photos are usually enough.

When is a partial refund the right answer?

When the item still works or is usable, for example a scuffed box or a cosmetic mark. Offer a partial refund and let the customer keep the item.

Can I recover the cost from the carrier?

Often, for damage the carrier caused. File with the photos and proof of value within the carrier's window; UPS, for example, accepts claims within 60 days of the scheduled delivery date.

Sources

  1. UPS: File a claim
  2. USPS: File a claim

Part of our guide: Order protection →

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