Most “item not received” chargebacks start with a simple problem: a customer cannot find their parcel and cannot get a quick answer. Going to the bank feels faster than waiting. To reduce these disputes, make it easy to report a missing order, resolve it quickly, and keep the delivery evidence you need for the disputes you still receive.
For the wider picture, see the order protection guide and the glossary entry for INR chargebacks.
What is an item not received chargeback?
It is a dispute a cardholder opens with their card issuer because they believe they never received the goods. In Shopify, these appear with the reason Product not received. The bank pulls the payment back while the dispute runs, and you usually pay a dispute fee whether you win or lose.
Why do lost and stolen orders turn into chargebacks?
- No clear way to report a problem, so the bank is the easiest route.
- Slow replies while the customer waits days for tracking to update.
- A policy that is hard to find or unclear about lost and stolen parcels.
- “Delivered” tracking with no parcel, which leaves the customer feeling stuck. See delivered but not received claims.
How do you prevent them?
- Make reporting easy. Link a claims page from order emails, the order status page and your footer.
- Answer fast. Acknowledge every report the same day, even if the fix takes longer.
- Offer a pre-agreed fix. A refund, reship or store credit, decided by a clear policy, removes the reason to dispute.
- Set expectations. Show delivery estimates and send tracking as soon as it exists.
- Use delivery safeguards for higher-value orders, such as signature on delivery.
- Publish a clear policy. Our guide on how to write a lost and stolen package policy covers the essentials.
What should you do when a chargeback arrives?
Shopify’s guidance is to contact the customer first. If you can resolve the problem, ask the customer to tell their bank they want to drop the chargeback, and include evidence of that agreement in your response.
If you cannot resolve it, submit evidence that the customer received the order. Shopify suggests:
- The date and time you fulfilled the order.
- The billing information the customer used.
- Shipping and tracking information.
Shopify also uploads a PDF of fulfillment events automatically. Add proof of delivery, such as a signature or delivery photo, when the carrier provides one. See proof of delivery.
How does shipping protection help?
Protection does not stop chargebacks by itself, but it changes the conversation. Customers who added protection know there is a fix and where to ask for it, and you have a funded budget to refund or reship without arguing. A claim resolved in a day leaves little reason to call the bank.
What should you track?
| Metric | Why it matters |
|---|---|
| Chargebacks per 1,000 orders | Shows whether prevention is working |
| Share with reason “Product not received” | Separates delivery problems from fraud |
| Time to first reply on claims | Slow replies push customers to the bank |
| Chargebacks on orders with an open claim | Shows where your process breaks down |
Review these monthly. If “Product not received” disputes cluster around one carrier or region, address that first.
What should you avoid?
- Refunding after a chargeback opens without telling the bank, which can mean paying twice.
- Ignoring dispute deadlines in your Shopify admin.
- Arguing with the customer when a fast reship would cost less than the dispute.
To set up a claims page and resolution flow, see Sam Shipping Protection.
Frequently asked questions
What is an item not received chargeback?
It is a dispute the cardholder opens with their bank because they believe they did not receive what they paid for. Shopify labels it "Product not received".
How do I win a product not received chargeback?
Submit evidence that the order was delivered: fulfillment date, billing details and shipping and tracking information. Shopify also uploads a PDF of fulfillment events automatically.
What if I already refunded or reshipped the order?
Ask the customer to tell their bank they want to drop the chargeback, and include evidence of that agreement in your response.
Does shipping protection stop chargebacks?
It does not stop them by itself, but a fast, pre-agreed resolution gives customers less reason to go to their bank.
Sources
Part of our guide: Order protection →