The heart of the UPS and FedEx delivery system is meeting their guaranteed service commitments, both companies have made it clear that they offer a full refund in the event that packages do not arrive on time. Requesting a refund is a normal part of the UPS and FedEx service and holds them accountable to the standards they have set.
Unfortunately, these carriers are making it more difficult for shippers to claim refunds for service failures by including a waiver for Guaranteed Service Refunds in their carrier agreements. This means that many businesses unknowingly waive their right to file for refunds when they sign a new carrier agreement, thinking they are getting better rates.
Recently, we have seen several clients who have unknowingly given up their right to file for refunds, resulting in them losing 2-6% of their total spend each week to the carrier's advantage. Carriers justify the waiver by offering "better discounts", however, these discounts are often outweighed by the constant rate hikes that occur every 12 months.
Here's what you can do to take advantage of guaranteed service refunds:
Contact your carrier representative and request the removal of the Money-Back Guarantee Waiver from your current agreement.
Don't let the carrier resist removing the waiver, you are already paying a premium for their services and you have the right to hold them accountable for the on-time and accuracy standards they have set.
In most cases, there will be no pushback from the carrier, and filing for refunds may even improve your relationship with them by providing them with new opportunities. If removing the waiver does affect your business relationship or the negotiation process negatively, it's important to ask whether your business and your customers' interests are being taken care of.
Don't let your shipping profits slip away, reach out to our team of parcel specialists for assistance in removing the Guaranteed Service Refund waiver from your carrier agreement.