ShipRx

Will Parcel Refunds Return in 2022? - ShipRx
Blog / Will Parcel Refunds Return in 2022?
2 minutes read

Will service guarantees return in 2022?

Before 2020, service guarantees by FedEx and UPS meant money back if packages weren’t delivered as promised. Then, COVID-19 shattered “business as usual,” and everything changed. Within one day of each other, UPS and FedEx ceased all service guarantees. As deliveries became more unpredictable, shippers lost their recourse for financial reimbursement. According to the UPS website, “The Novel Coronavirus pandemic has created unprecedented complexities, which have required us to constantly reassess our operations. Our highest priority is to help ensure the health and safety of our employees, customers, and suppliers.”

Overnight, businesses could no longer rely on guaranteed deliveries (or the refunds they deserved when packages weren’t delivered on time).

A partial return

In April 2021, UPS and FedEx reinstated partial service guarantees on their more expensive shipping options. UPS also extended their guaranteed delivery time for UPS Next Day Air Saver® deliveries from 3 PM to 11:59 PM on the guaranteed day of delivery. 

While a partial return was better than nothing, the new terms didn’t last long. 

In October, UPS announced that it would extend delivery commitment times for UPS Next Day Air® destined to residential locations from 10:30 AM to 12:00 PM until further notice. 

On November 1, FedEx suspended its Money-Back Guarantee until January 16, 2022. This leaves shippers using FedEx without an opportunity to claim refunds during the busiest time of the year. Will the guarantee return for all its services? FedEx is leaving their options open, stating “The status of the money-back guarantee for these FedEx services and additional FedEx services worldwide is being evaluated on an ongoing basis, and our focus remains on continuing to provide the best possible service to our customers during this period of uncertainty.”

What’s next for service guarantees in 2022?

In the past, UPS and FedEx took responsibility for late deliveries, service failures, and incorrect charges by offering refunds or credits. Now, service guarantees are no longer guaranteed. We’ve learned that the carrier can (and will) revoke service guarantees during times of high traffic. 

Should you just accept the “new normal” and pay for unpredictable service? No! While you may not be able to force the reinstatement of service guarantees, there is something you can do. 

Parcel rate contracts can be negotiated at any time– not just when the contract ends. If you negotiated the contract without the help of a shipping professional, you’re probably paying too much. The team at ShipRx has spent our careers writing contracts on both sides of the table. We’ve worked for the carriers, and we’ll coach you on the strategies that will help you save the most money. 

 

The best part? We don’t get paid unless you’re saving money, so you’ve got nothing to lose. When you negotiate a contract with the help of ShipRx, you can be confident that you’re saving money– whether or not service guarantees make a full return in 2022.

 

Todd
Todd Partner
2 Minute Read

UPS reports a 5th consecutive quarterly decline

It’s no secret that the parcel industry has experienced some major shakeups over the past few years. From scrambling to meet a COVID-era spike in e-commerce to dealing with reduced demand due today, the carriers haven’t had it easy.
brittany
Brittany ShipRx Contributor
2 Minute Read

Amazon Surpasses UPS in Parcel Volume

The company that began as an online bookseller in Jeff Bezos’ Bellevue, Washington home is now one of the leading parcel carriers globally. For the first time ever, in 2023, Amazon Logistics surpassed UPS in parcel volume to secure
Jim
James Founding Partner
2 Minute Read

The End of Free Shipping?

Last week, we discussed UPS and FedEx’s new surcharges in 82 urban zip codes. Now, some are saying these surcharges, ranging from $3.95 to $5.85, might be the final straw for free shipping.
Todd
Todd Partner

Save On Your Parcel Costs Today

Get a full-scale analysis of your business and ShipRX exclusive recommended solutions to increase your profits.

Cost Saving Services

Request Your Free Savings Report.

Fill out the form below, and we’ll call you within 24 hours. In a rush? Call now (844) 774-4779

Pop Up Form

  • This field is for validation purposes and should be left unchanged.