When a customer says their package is lost, check tracking and the shipping address, then reply within a day with a clear plan and a date. If the package is truly missing, reship or refund without waiting for the carrier. Recover your cost from the carrier or insurer in the background.
This SOP is written for Shopify stores and works whether or not you offer shipping protection. With protection, the “when should you reship or refund” step is simply “follow your published claim rules”. For stolen and damaged orders too, see the order protection guide.
What should you check first?
Spend five minutes on these before you reply:
- Tracking status. Is it moving, stuck, returned to sender, or marked delivered?
- The address on the order. Typos, missing apartment numbers and wrong ZIP codes cause many “lost” packages.
- The expected delivery date. A package two days late is delayed, not lost.
- Order history. Has this customer reported lost packages before?
- Protection on the order. If the customer bought protection, your claim rules apply.
Is the package lost, delayed or delivered?
Sort every case into one of four buckets. Each has a different next step.
| Tracking shows | What it usually means | Next step |
|---|---|---|
| Moving, a few days late | Delayed | Reassure, share tracking, set a follow-up date |
| No update for several days | Possibly lost | Open a carrier trace; plan a reship or refund |
| Returned to sender | Address or delivery problem | Confirm the address, then reship |
| Delivered, customer says no | Delivered but not received | Ask the customer to check with neighbors and household, then decide |
“Delivered but not received” cases need extra care because carriers rarely pay for them. See our guide on delivered but not received claims for that playbook.
What should you tell the customer?
Reply within one business day, even if you do not have an answer yet. Customers mostly want to know someone is on it.
A good first reply covers three things:
- What you found: “Tracking hasn’t updated since Tuesday in Denver.”
- What you will do: “We’ve opened a trace with the carrier.”
- When they will hear back: “If it hasn’t moved by Friday, we’ll send a replacement.”
Keep it short and avoid blaming the carrier. To the customer, you are the one who shipped it.
When should you reship or refund?
Do not make the customer wait for the carrier’s investigation. Set a clear trigger, for example:
- Three business days with no tracking update after the expected delivery date, or
- The carrier confirms the package is lost or damaged.
Then choose the resolution:
| Option | Best when | Watch out for |
|---|---|---|
| Reship | You have stock and the customer still wants it | Use a different service or add signature confirmation if this route has issues |
| Refund | Out of stock, time-sensitive item, or the customer asks | Refund shipping too if the order never arrived |
| Store credit | The customer is happy to wait or buy something else | Make it a choice, not the only option |
In Shopify you can reship by creating a replacement order (for example, a draft order at no charge) and refund from the original order page. If you use Sam, you can resolve the claim from the claims dashboard with a full or partial refund, store credit or a reorder.
How do you file a claim with the carrier?
Recover your cost in parallel with fixing the customer’s order. Each carrier has its own window:
- USPS: you can submit a Missing Mail search from 7 days after mailing, up to 365 days. Insured packages also qualify for a claim.
- UPS: you can start a claim for a lost or damaged package within 60 days of the scheduled delivery date.
- FedEx: deadlines differ for loss and damage and for US and international shipments, so check FedEx’s claims page.
- Shopify Shipping insurance: if you bought labels with insurance in Shopify, file from the order page in your admin, up to 120 days from the shipping date.
Have these ready: the tracking number, proof of value (invoice or product cost), the delivery address, and any customer messages. Default carrier coverage is limited, usually $100 for UPS and FedEx, so expensive orders may need declared value or insurance. Our shipping insurance guide explains the options.
How do you prevent the next lost package?
Log every case: order number, carrier, service, destination, resolution and cost. After a month, look for patterns:
- One carrier or service with more losses than others.
- Certain ZIP codes or buildings with repeat problems.
- High-value orders without signature confirmation.
- Address errors that address validation at checkout would catch.
Then decide where shipping protection pays for itself. The fee customers choose to pay can cover the losses you cannot prevent. Run your numbers in the shipping protection calculator, or see how to set it up with Sam Shipping Protection.
Frequently asked questions
Should I refund or reship a lost package?
Reship if you have stock and the customer still wants the item; refund if you are out of stock, the item was time-sensitive, or the customer asks for their money back. Store credit is a good middle ground when the customer is happy to wait.
How long should I wait before treating a package as lost?
Give it a few business days past the expected delivery date if tracking is still moving. If tracking has not updated for several days, or it is past the carrier's search window, treat it as lost and act. USPS lets you submit a Missing Mail search from 7 days after mailing.
Who is responsible for a lost package, the store or the carrier?
To the customer, the store is responsible: they bought from you. Behind the scenes you can file a claim with the carrier or your insurer to recover your cost, but do not make the customer wait on that process.
How can I reduce the cost of lost packages?
Offer shipping protection so customers who want cover pay for it, use signature confirmation on expensive orders, and fix address problems at checkout. Track your loss rate by carrier and route so you can switch services where losses are high.
Sources
Part of our guide: Order protection →