Late FedEx Package Delivery

Late FedEx package delivery: request for a refund

by BlogTSM Services

Does your business ship packages through FedEx? Are you aware that your business is eligible for a refund if a package is delivered late by a minute? But, FedEx will not notify businesses if packages delay. Companies have to keep track of late packages. In addition, FedEx will not notify companies if they suspend or revoke the refund. FedEx refunds are primarily for Express and Ground services with a guaranteed delivery date and time.

FedEx Express

Express shipments involve shipping packages by a given deadline domestically or internationally. FedEx Express shipping services disruption was due to the pandemic, war, etc. Only select FedEx Express services are eligible for FedEx Money-Back Guarantee (MBG) as on January 3, 2023. They are

  • FedEx First Overnight®
  • FedEx Priority Overnight®
  • FedEx Standard Overnight®
  • FedEx First Overnight Extra Hours
  • FedEx Priority Overnight Extra Hours
  • FedEx Standard Overnight Extra Hours
  • FedEx International First®
  • FedEx International Priority®
  • FedEx International Priority® Express
  • FedEx International Priority® Freight

However, FedEx has suspended the money-back guarantee for services like FedEx Ground®, FedEx Freight®, FedEx SameDay® City, and FedEx Office® services till further notice.

Understanding FedEx Money-back Guarantee Policy

According to FedEx’s Money-back Guarantee (MBG) policy, if there is a service failure by FedEx, a business can recover all or a portion of the FedEx charges for a shipment. Late FedEx package delivery help shippers get about 100% refund of their shipping costs. In addition, FedEx offers Money-back Guarantee services to its customers when negotiating contracts. Shippers can receive a refund from FedEx for fifty or more service failures like lost packages, wrong address correction charges, and more.

Exceptions and Limitations to FedEx Money-Back Guarantee Policy

Like any policy, there are exceptions and limitations to the FedEx Money-Back Guarantee Policy. The limitations are

  • FedEx refunds will be credited to the payer only
  • One refund is for each package
  • In a multi-package shipment, a refund request for each package is possible when there is a service failure
  • It is calculated on the number and weight of packages within a shipment where there is service failure for FedEx International Priority Direct Distribution and FedEx International Priority Direct Distribution Freight
  • MBG applies only to transportation charges and not to taxes, duties, or other charges
  • It does not apply to invoice adjustment requests based on overcharges or shipments to P.O. Box addresses for delivery
  • It does not apply to shipments where the recipient has requested modified or customized delivery

Late Delivery Refund Exceptions

FedEx will not pay transportation charges in the form of a refund or credit for

  • Dangerous goods or dry ice shipments
  • Undeliverable or returned packages
  • Wrong address or ZIP code on the shipments
  • Unavailability or refusal of a person to accept delivery or sign the package
  • Customs or regulatory delays
  • Incorrect tracking numbers applied on FedEx shipments by customers
  • Shipments for delivery seven days before Christmas Day
  • Shipment scheduled on Wednesday before Thanksgiving
  • Incomplete recipient information

Further information about FedEx exceptions and limitations to its Money-Back Guarantee policy is available in the FedEx Service Guide, 2023.

How to request a FedEx refund?

FedEx refunds are possible only when there is a claim request. The claim request for a FedEx refund has been filed within fifteen calendar days from the invoice date. A refund request due to a service failure is possible by the following methods

  • Using internet application-FedEx Billing Online at fedex.com; or
  • Using the invoice adjustment feature at fedex.com; or
  • Through telephone invoice adjustment system at 1.800.463.3339 by saying “billing.”

Further, the request must have a FedEx account number,  if any; the FedEx tracking number; and the date of the shipment.

Shippers will find it difficult to audit each invoice to claim refunds from FedEx. Further, during carrier contract negotiations, FedEx may tempt shippers with a Money-Back Guarantee waiver with discounts. Shippers need professionals who help with contract negotiations and claiming FedEx refunds in time.

 Audintel helps shippers claim their refunds from FedEx in time. Our software and team of experts audit invoices and save money for our clients. In addition, Audintel helps clients understand the fine print of the carrier contracts so that they do not sign on Money-Back Guarantee Waiver and lose money.    

To Sum it up

Online businesses find it troublesome to explain the late delivery of packages to customers. In addition to customer dissatisfaction, shippers lose money if they don’t receive refunds from FedEx in time. Partnering with Audintel helps shippers receive refunds from FedEx in time. Audintel monitors packages for late deliveries and discusses with FedEx service failures for refunds. Contact us at +1 (619) 354 8539 to discover about FedEx money-back guarantee services or visit our Audintel website.

why

Why incorporating GSR/MBG waiver in shipping contracts is a bad idea?

by BlogCost Optimization

On-time delivery of shipments is vital for shippers. Late parcel deliveries test a customer’s patience. At times, customer dissatisfaction leads to financial loss. With this in mind, shippers have a refund clause in their shipping contracts with the shipping carriers. Shipping carriers promise a refund for service failures such as late deliveries.

Approved late delivery refund requests save 100% shipping costs. But, in the past few years, FedEx and UPS are offering shipping refund waivers with incentives. Large shipping carriers are aggressively vouching for refund waivers. So, what are these shipping refund waivers? And, why should shippers not accept such Guaranteed Service Refund waivers? Read on for all this and more, in this article.

What are shipping refund waivers?

Shipping carriers like FedEx and UPS offer shipping refund waivers. Shipping refund waivers are clauses within the shipping contracts that provide discounts to shippers. These discounts are in return for waiving off the shippers’ rights to claim refunds. FedEx’s refund waiver is known as Money-Back Guarantee (MBG) waiver. And UPS’ refund waiver is known as UPS’ Guaranteed Service Refund (GSR) waiver. In addition, UPS and FedEx aggressively market these waivers to shippers for earning extra revenue.

Incentives in exchange for GSR waiver

Often shipping carriers offer discounts and incentives in exchange for signing an agreement with Guaranteed Service Refund waiver.  Shipping carriers who want GSR waivers entice shippers with attractive discounts during contract negotiations. The incentives include an additional package rate discount and small discounts in the accessorial charges for a short period. But, shippers generally don’t benefit much from these incentives, as there are other charges on the package.

Why should shippers not sign an agreement with UPS’ GSR or FedEx’s MBG waivers?

UPS’ GSR ensures the on-time delivery of all Ground and Express Packages.  When shippers sign GSR waivers, shipping carriers can no longer be held accountable for late deliveries. For instance, a parcel’s delivery time is the same day, but the delivery occurs the next day. The customer will hold the shipper responsible for the delay and not the shipping carrier. The shippers cannot demand a refund from shipping carriers on signing a GSR waiver. As a consequence, shippers face loss of revenue and customer dissatisfaction. That is why Audintel strongly suggests that shippers should not sign agreements with UPS’ GSR or FedEx’s MBG waivers.

Disadvantages of accepting shipping refund waivers

The disadvantages of accepting MBG waivers include lost customers, an increase in returned shipments, etc. Packages that are delivered late are a chief reason for shippers losing customers. Minimum service charges on each parcel eat away any discounts received on account of the GSR waiver. FedEx may offer an additional package rate discount with an MBG waiver. But, when FedEx applies minimum service package charges, these additional discounts will be negligible and lead to revenue loss. According to recent studies, waiving away MBG rights will cost shippers 1-5% of their entire parcel spend.

How can Audintel help?

Audintel has a well-experienced team of experts who are well-versed in contract negotiations. We compare the services of the shipping carriers before signing a contract. Audintel studies the fine print of each shipping contract with shipping carriers. We will help in getting you discounts while keeping the Guaranteed Service Refund clause intact. We ensure that our clients save more by not signing an agreement with a GSR waiver.

Services offered by Audintel concerning GSR Waiver

Audintel will never suggest a GSR waiver for its clients. We believe the credibility of the client will be affected by accepting the GSR waiver. When a GSR waiver is signed, shippers cannot question the shipping carriers for late deliveries. Shippers’ business gets affected due to delays in parcel deliveries. Shippers are in safe hands when they trust Audintel to manage their shipping portfolios. We not only track each parcel for late deliveries but also request for GSR. Our services help our clients receive the refund amount due to them. As well as enhance customer satisfaction bringing in more business for our clients.  Audintel holds the shipping carriers responsible for deficiencies in services. We can save at least 2-5% of overall parcel spend for our clients.

Late delivery refunds are essential for the small parcel industry. Late delivery refund claims save money for shipping companies. There is an estimate that over 3 billion dollars from unclaimed refunds are collected by UPS and FedEx when shippers sign GSR waivers. The refund amount belongs to shippers but, the amount remains unclaimed due to lack of auditing and claim processing. Shippers need professionals who can help them in monitoring their shipment portfolios at every stage. Audintel provides encompassing audit services to its clients. We help in analyzing your shipping spend and save money. Audintel is a name you can trust for auditing parcel services. For further details, write to us at [email protected] or please visit our Audintel website, or contact us at +1 (619) 354 8539.