The 14 E-Commerce Shipping Problems You’re Likely to Face

Authored by Matt Lessard

Since 2001, Matt Lessard has started numerous projects, from an E-commerce SaaS to an online store shipping to over 80 countries. Creator of Buster Fetcher®, a technology reducing shipping costs. Passionate about personal development and business growth.

Shipping is critical for your e-commerce success. As online shopping grows, customer expectations for fast, reliable, and cost-effective delivery increase. Efficient shipping is no longer a secondary concern—it’s a crucial factor that can make or break your business.

A recent SMB Shipping Pulse Check survey found that 71% of online shoppers contacted customer service due to shipping issues. Common problems include late deliveries (39%), lost or stolen orders (36%), and damaged products (27%). This article will explore these shipping problems and offer strategies to avoid them.

Problems:

1. Delayed Deliveries
2. Damaged or Lost Packages
3. Inconsistent Delivery Experiences
4. Returns Management
5. International Shipping Challenges
6. High Shipping Costs
7. Inventory Management
8. Packaging Issues
9. Carrier Relations
10. Order Tracking
11. Seasonal Fluctuations
12. Last-Mile Delivery Issues
13. Failed or Missed Deliveries
14. Inaccurate Tracking Information

Problem #1: Delayed Deliveries

Delayed deliveries can lead to customer dissatisfaction, lost sales, and negative reviews. With 39% of shoppers citing late deliveries, the impact can harm your brand’s reputation. Customers may turn to competitors when their expectations aren’t met, making it crucial to address delays proactively to retain customer trust and loyalty.

Real-Life Example:

An e-commerce told us that during peak shopping season, many shipments were delayed due to carrier issues. This led to a surge in customer complaints and cancellations, with many customers frustrated over unmet delivery promises.

Learn more about filing claims for late deliveries with:

• Purolator

• UPS

• FedEx

• Canada Post

Problem #2: Damaged or Lost Packages

The financial repercussions of damaged or lost packages can be substantial, including refunds, replacements, and potential reshipment fees. Beyond the immediate loss, such incidents can lead to dissatisfaction and a tarnished reputation. Customers with order issues are likely to share their negative experiences publicly, influencing potential buyers and leading to decreased sales. In a competitive market, maintaining customer trust is essential for long-term success.

Real-Life Example:

A retailer shipped a high-value item that arrived damaged due to insufficient packaging. They issued a refund, and the customer left a negative review, significantly impacting the business’s reputation.

Problem #3: Inconsistent Delivery Experiences

Inconsistent delivery experiences can erode customer confidence. Varying experiences with different carriers create a perception of unreliability. Frequent issues can lead customers to seek alternatives, increasing churn rates. Negative reviews from poor delivery experiences can impact your online reputation, making it crucial to maintain consistent service quality across all delivery partners.

Real-Life Example:

An e-commerce owner said they switched carriers mid-year. Customers reported orders from the new carrier often arrived late or were delivered to the wrong address, causing confusion and frustration.

Problem #4: Returns Management

Returns management is a double-edged sword. While reverse logistics is necessary in e-commerce, it can significantly increase costs and complicate logistics. A high return rate can reflect poorly on product quality and lead to customer frustration. Additionally, dealing with fraudulent returns can drain resources and disrupt inventory management. An inefficient returns process can alienate customers who may avoid future purchases.

Real-Life Example:

A small business owner reported that 30% of returns were fraudulent, with customers sending back used or old items. This increased costs and complicated inventory management.

Problem #5: International Shipping Challenges

International shipping involves complexities like customs regulations, import duties, and longer delivery times, frustrating customers and complicating fulfillment. Unexpected delays can lead to customer dissatisfaction and tarnish your brand’s global reputation. Increased shipping costs can make your offerings less competitive, hindering growth.

Real-Life Example:

An e-commerce business owner faced shipping delays to European customers due to customs regulations. Packages expected within a week often took a month, leading to customer complaints.

Problem #6: High Shipping Costs

High shipping costs are one of the most persistent e-commerce shipping challenges, often impacting conversion rates and overall profitability. In fact, 61% of consumers are less likely to complete a purchase if shipping fees are high. By optimizing shipping workflows and using delivery management tools to track costs in real-time, businesses can minimize overhead. Services like Buster Fetcher not only automate refund claims for late deliveries but also help identify hidden costs like unused shipping labels, preventing unnecessary expenses.

Real-Life Example:

A business owner noted that after raising their shipping rates to cover costs, they saw a 25% decrease in their conversion rate, forcing them to reassess their shipping strategy.

Problem #7: Inventory Management

Poor inventory management can lead to supply chain disruptions like stockouts, missed sales, and dissatisfied customers turning to competitors. Overselling can cause logistical issues and damage customer relationships. Inefficient inventory systems can increase operational costs, impacting your bottom line.

Real-Life Example:

A retailer ran out of stock during a major sale, missing sales and disappointing customers. They lost potential customers to competitors with similar products.

Problem #8: Packaging Issues

Packaging quality impacts product protection and customer perception. Poor packaging leads to damaged items, costly returns, and unhappy customers. It also plays a crucial role in brand identity; subpar packaging can diminish perceived value and deter repeat purchases. Today’s consumers care about sustainability, with 22% preferring eco-friendly packaging, making it essential to consider environmental impacts in packaging design.

Real-Life Example:

After switching to cheaper packaging materials, an e-commerce owner reported multiple complaints, resulting in more damaged products and unhappy customers.

Problem #9: Carrier Relations

Strong relationships with carriers are vital for negotiating favorable rates and ensuring reliable service. However, poor communication or lack of responsiveness from carriers can cause delays and inaccurate deliveries. If issues persist, they can lead to elevated shipping costs and damaged customer relationships. Maintaining good carrier relations is essential for smooth logistics and a good brand reputation.

Real-Life Example:

A small business owner recounted ongoing problems with a major carrier who frequently misdelivered packages. Their attempts to resolve the issues through customer service were met with frustration and little assistance.

Problem #10: Order Tracking

Accurate and timely order tracking information is not just for transparency and reducing customer anxiety, but for delivering an optimal post-purchase experience. Customers expect updates on their orders; failure to do so can lead to frustration and distrust. Inaccurate tracking can result in an influx of customer inquiries, diverting resources from other areas. Maintaining effective order tracking systems ensures customer satisfaction and loyalty.

Real-Life Example:

An e-commerce owner noted that their customer service team was overwhelmed with inquiries about order statuses due to outdated or inaccurate tracking information.

Problem #11: Seasonal Fluctuations

Seasonal fluctuations can cause unpredictable demand spikes, straining shipping and logistics. If not managed properly, they can result in delays, increased costs, and stockouts. Failing to capitalize on peak seasons may lead to lost revenue. Therefore, strategic planning and promotions are crucial to manage these periods effectively.

Real-Life Example:

A retailer found they were unprepared for the holiday surge in orders, resulting in extended shipping times and unhappy customers. They learned the importance of pre-planning for seasonal demand.

Problem #12: Last-Mile Delivery Issues

Last-mile delivery is often the most complex and costly aspect of the shipping process. Delays or inefficiencies in this final leg can lead to customer dissatisfaction, as this is the moment when expectations are most acute. Customers increasingly demand quick and flexible delivery options, and failure to meet these demands can drive them to competitors. Additionally, logistical challenges can result in increased operational costs that eat into profits.

Real-Life Example:

One e-commerce owner reported struggles with last-mile delivery in urban areas, where customers expected same-day delivery. The costs were prohibitive, forcing them to find alternative solutions.

Problem #13: Failed or Missed Deliveries

Failed or missed deliveries frustrate customers and can lead to increased costs for businesses due to the need for redelivery attempts or refunds. This often results in a negative customer experience, damaging brand loyalty and increasing the likelihood of negative reviews. A high rate of failed deliveries can also lead to increased scrutiny of your shipping partners and processes.

Real-Life Example:

An e-commerce owner reported complaints from customers who received missed delivery notifications despite being home. This led to confusion and dissatisfaction.

Problem #14: Inaccurate Tracking Information

Inaccurate tracking information can lead to significant frustration for customers, as they rely on updates to plan their schedules and anticipate deliveries. When tracking data is incorrect, it creates confusion and anxiety, prompting customers to reach out to customer service for updates, leading to increased operational costs. Moreover, if the issue persists, it can damage the brand’s credibility and erode customer trust, making them less likely to purchase in the future.

Real-Life Example:

A merchant told us that one of their customer reported that their package was marked as delivered several days before it actually arrived, causing frustration and anxiety about the order. He received several emails about the issue his customer was facing.

Shipping Success Checklist

Now that you’re aware of the most common shipping issues, here’s a quick checklist to help you improve your shipping process:

• Partner with reliable carriers and assess their performance.

• Implement real-time tracking with tools like Buster Fetcher.

• Optimize packaging to reduce costs and appeal to eco-conscious customers.

• Set clear delivery expectations and communicate proactively with customers.

Conclusion

Shipping challenges are unavoidable, but they can be managed effectively. E-commerce businesses can turn shipping into a competitive advantage by proactively addressing issues, using automated tools like Buster Fetcher, and partnering with reliable carriers. Implementing these strategies will improve your operations, build customer trust, and ultimately drive long-term success.

FAQ

What is causing the shipping issues?

The main causes of shipping issues include:

• Delayed Deliveries: Problems like unrealistic delivery expectations, carrier issues, and inefficient fulfillment processes lead to delays.
• Damaged or Lost Packages: Poor packaging, mishandling by carriers, and incorrect addresses are common causes.
• Inconsistent Delivery Experiences: Using unreliable carriers or a combination of carriers with varying performance can lead to inconsistent experiences.
• Returns Management: Fraudulent returns and inefficient reverse logistics complicate the returns process.
• International Shipping Challenges: Customs regulations, import duties, and longer transit times create complexities in cross-border shipping.
• High Shipping Costs: Rising shipping rates and hidden costs like unshipped labels add to the overall shipping burden.

What shipping delays can I expect in 2025?

Shipping is expected to improve compared to recent years, but some delays may still occur in 2025. Labor shortages in logistics and transportation could cause bottlenecks, and major ports may still experience congestion, though less. Equipment shortages, like limited shipping containers or trucks, could also contribute to delays.

Advancements in technology should mitigate these issues. More companies will adopt advanced supply chain management systems and automation, speeding up processes and reducing human error.

By 2025, consumers and businesses will likely plan for delays by ordering earlier or keeping larger inventories. Local sourcing may reduce reliance on long-distance shipping, leading to quicker deliveries. While delays may happen, the situation should be more stable and efficient than in previous years.

How to handle shipping problems?

Here are several actionable steps to handle shipping problems:

• Set realistic delivery expectations: Avoid overpromising shipping times.
• Proactively manage delayed deliveries: Use tools like Buster Fetcher to monitor carrier performance and automate refund claims for late deliveries.
• Improve packaging: Ensure durable, eco-friendly packaging to avoid damage in transit.
• Diversify carriers: Use multiple reliable carriers to avoid being reliant on one and ensure consistent service.
• Manage returns efficiently: Automate returns processing and reduce fraudulent returns with clear policies and effective reverse logistics.
• Use data to optimize shipping costs: Leverage tools like Buster Fetcher to identify cost-saving opportunities and hidden fees.
  
  Each of these strategies can mitigate or resolve common shipping challenges faced by e-commerce businesses.