In the wake of the Covid-19 outbreak, both UPS and FedEx suspended their money-back guarantee in March 2020 due to challenging market conditions. However, fast forward to 2023, the carriers are still refusing to honor their money-back guarantee for most service levels.
Guaranteed Service Levels: Next-day air services and international priority/express services are among the service levels now guaranteed by UPS and FedEx. UPS has also altered its guarantee policy, stating that next-day air services are considered timely as long as they are delivered by 11:59 pm (local time) the following day. Previously, next-day air deliveries had definite delivery times (8 am, 10:30 am, and 5 pm).
More recently, UPS and FedEx began honoring the money-back guarantee for 2 Day services as well.
Other Service Levels: There is no word yet on when UPS and FedEx will reinstate the money-back guarantee for the rest of their service mix, which includes 3rd day air, home delivery, and ground services.
Impact on Your Business: Although this is a positive development, the majority of the volume handled by UPS and FedEx remains without a guarantee. This change offers some relief to overnight shippers but fails to address the issue of service failures for all other service levels.
Eligibility for Money-Back Guarantee: As the money-back guarantee returns, it is crucial to determine if your business is eligible for refunds. Recently, both carriers have included a waiver for Guaranteed Service Refunds in their carrier agreements by default.