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How to Handle Lost, Delayed or Damaged Orders

29 October 2026Elliot Byrne4 min read

When an order is lost, delayed or damaged, the seller should take ownership of the problem, communicate clearly and choose a fair remedy. Check the delivery details and tracking first, then contact the customer with a useful update rather than asking them to investigate the courier themselves. Depending on what happened, the right outcome may be a replacement, refund or delivery-service claim.

Check the facts before replying

Start by gathering the order number, dispatch date, delivery address, tracking history and the customer’s messages. Check whether the parcel was actually collected by the delivery service, whether a delivery attempt was recorded, and whether the tracking has stopped moving or shows delivery.

For a parcel marked as delivered but not received, ask the customer to check safe places, household members, reception areas and nearby addresses. Keep the tone neutral. A delivery scan is useful information, but it is not a reason to dismiss the customer’s concern.

For a damaged order, ask for clear photographs of the outer packaging, internal protection and product. These images can help you decide what to do and support a claim. Do not make the customer wait while you conduct a lengthy investigation if the damage is obvious and the remedy is straightforward.

Communicate early and specifically

A good first response should acknowledge the issue, state what you have checked and explain the next step. Avoid vague phrases such as “the courier is looking into it” without a timeframe.

You could write:

“I’m sorry your order has not arrived. I’ve checked the tracking and it has not received a new scan since Tuesday. I’ll contact the delivery service today and update you by Thursday. If it cannot be located, I’ll arrange a replacement or refund with you.”

If the parcel is delayed during the pre-Christmas rush, be honest about what you know. Do not promise a delivery date that is outside your control. If the item is intended as a gift, ask whether the customer would prefer a replacement sent now, a refund, or to wait for the original parcel to be located.

Keep all updates in one customer-service channel where possible. Record the date of each message, the information provided and any remedy offered. This prevents contradictory replies and makes handovers easier if someone else helps during busy periods.

Choosing a replacement, refund or claim

When a replacement makes sense

A replacement is often practical when the product is available, the customer still wants it and the problem can be resolved quickly. Confirm the delivery address before sending it. Use tracking and, where appropriate, stronger packaging or a different delivery option.

Tell the customer what will happen to the original parcel if it later turns up. For example, you may ask them to contact you before using or returning it. Do not create confusion by sending a replacement without explaining whether the original should be kept, returned or refused.

When to refund

A refund may be the fairest option when the item is out of stock, time-sensitive, damaged beyond use or no longer wanted after a substantial delay. If the customer has paid for delivery, consider how that charge should be handled as part of the resolution.

Australian Consumer Law applies to online sales. Goods should be supplied as described, acceptable in quality and fit for any purpose communicated to the seller. If a product has a problem covered by a consumer guarantee, the customer may be entitled to a repair, replacement or refund depending on the circumstances. Your shop policies cannot remove those rights.

When to contact the delivery service

Make the delivery-service claim yourself where you can. You are usually the party with the booking details, tracking information and proof of dispatch, and the customer bought the goods from you. A claim should not be used as a reason to delay a reasonable solution.

Keep the claim reference, lodged date, photographs, consignment details and the service’s response. If the service requests further evidence, send it promptly, but continue updating the customer even when there is no new result.

Prevent avoidable delivery problems

  • Check addresses: Make the postcode, unit number and street details visible before fulfilment. Contact the customer promptly if anything looks incomplete.
  • Pack for movement: Choose a box or mailer that fits the item, protect fragile parts from impact and stop products moving around inside the parcel.
  • Photograph unusual orders: For high-value, fragile or customised items, take a quick packing photo showing the product and protection before sealing the parcel.
  • Record dispatch: Save the order number, dispatch date, tracking number, carrier, parcel size and any delivery instructions.
  • Set expectations: Display handling times separately from estimated transit times. Explain that public holidays and seasonal demand may affect delivery.
  • Review patterns: At the end of each week, look for repeat damage, address errors, missed scans or unsafe delivery outcomes. Fix the packing or fulfilment step causing the pattern.

Prepare a simple busy-season process

Before pre-Christmas orders increase, write a short internal checklist. Decide who checks tracking, how quickly customers receive a first reply, when a missing parcel is escalated and who approves replacements or refunds. Set aside replacement stock for popular products if doing so is realistic.

Use a small issue log with columns for order number, problem, last tracking event, customer update, next action and due date. This is more reliable than searching through scattered messages. It also shows which delivery problems are costing time and goodwill.

Keep your tone calm even when a customer is angry. A clear acknowledgement, an owner for the problem and a specific next update will usually be more helpful than a defensive explanation. Resolve the immediate order, then improve the process that allowed the problem to happen.

Practical summary

Check the tracking and order records, reply quickly, take responsibility for the customer’s outcome and give a definite next step. Replace or refund when that is the fairest solution, lodge the delivery claim yourself, and keep simple packing and dispatch records so the same problem is less likely to happen again.