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Understanding the Fine Print of FedEx & UPS Guaranteed Service Refunds

By July 30, 2018

Shipping is an essential part of business operations for companies small and large alike. In fact, it was reported that FedEx and UPS collectively ship nearly 12 Billion packages each year… and this number is rising as each day passes. Keeping this in mind, it’s no surprise that these shipping giants don’t offer easy-to-read and easy-to-discover details on their guaranteed service refunds, otherwise known as GSR. After all, they’re in the business to make money and when offering GSRs, they risk losing more than they know they could otherwise keep. Don’t let this reality blind your efforts, however, in capturing your GSRs when deserved.

To help understand the fine print details of FedEx and UPS guaranteed service refunds, consider the below.

Money-Back Guarantee… Yes or No?

For most services provided by FedEx and UPS, there is a free, money-back guarantee. To identify which services these are attached to, visit fedex.com and ups.com to identify if the money-back guarantee applies to your shipment. Additionally, it’s important to recognize that among the fine-print details that are attached to these guarantees include if FedEx or UPS makes a delivery later than their time commitment. If this happens, the shipper is entitled to receive a credit for the shipping charges. The catch? Too often this is not identified by the shipper and thus, the refund is never received. In other words, it’s important to understand that these late package refunds are only provided upon request. In other words, while money-back guarantees are offered by FedEx and UPS, they are not automatically given. This is why the shipper must take initiative in these efforts – ultimately being the one to take action in capturing these refunds. By introducing an automated refund service into your shipping strategy, such as the one explained here, shippers can confidently capture refunds without having to manage the fine print details of their deliveries themselves.

Like most things in life, there are exceptions to every rule. And this holds true for GSRs, as well. Among the exceptions for both FedEx and UPS include:

Smart Post or Mail Innovations – Also known as UPSMI, FedEx SmartPost and UPS Mail Innovations are combined shipping methods between FedEx or UPS and the US Postal Service. An example of this would be if FedEx or UPS picks up your order from a warehouse and delivers it to your local post office where USPS continues with the shipment right to your doorstep.

15 Day Time Limit to Claim Late Package Refunds Exceptions – Shippers have a time limit to claim a service guarantee failure. For FedEx, this is within 15 calendar days of the invoice date. For UPS, this is within 15 calendar days from the scheduled delivery date. These fine print details are ones you don’t want to ignore and thus, incorporating an automated refund service can help you monitor this. Explore more here.

External Factors Beyond FedEx and UPS Control – Weather delays, customs delays and factors that are not in a carrier’s control will influence a shipper’s refund. While delays may occur, these are not covered by GSR.

Finally, when a refund is issued it will show up as a credit on your FedEx or UPS invoice. Thus, this will reduce your future spending with each respective carrier – alleviating your shipping spend as a result.

With an improved understanding of GSR and the confidence you need to take action in capturing your refunds when deserved, there is no excuse for businesses to shy away from losing money. Reduce your shipping spend and gain profit with the help of an automated refund service – allowing your business to strengthen its shipping strategy along the way. To help, explore more here.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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