Delivery Exception Explained: How to Prevent and Handle Delays

Delivery exceptions occur from time to time, and they can be incredibly stressful. Naturally, you worry that customers might complain or even leave bad reviews.

Instead of just hoping your shipping carrier will fix things after a quick phone call, you might wonder: Is there anything else you can do?

The answer is YES! In this article, we’ll share practical tips and proven strategies to help you prevent and handle delivery exceptions, based on what we’ve learned from thousands of Channelwill customers over the past decade.

By staying proactive and having backup plans in place, you can protect your brand reputation and build stronger relationships with your customers.

What Does Delivery Exception Mean?

A delivery exception refers to an unexpected hiccup in the normal delivery process that causes delays or prevents packages from reaching their intended destination on time.

When this occurs, couriers typically send a delivery exception notice to let both you and your customers know about the issue and any potential delays.

Just put yourself in your customer’s shoes: You’re eagerly waiting for a package, and suddenly, you get a notification saying there’s a delivery exception. But you need that package for your friend’s birthday tomorrow! You might get mad if the seller does anything about it.

That’s why you need to stay alert for delivery exceptions. If you handle delivery exceptions proactively, your customers feel taken care of, and your brand’s reputation stays strong.

Impact of Delivery Exceptions on Your Business

Delivery exceptions don’t just delay packages. They can ripple through your entire business.

From unhappy customers to extra costs and disrupted workflows, these unexpected issues can have lasting effects on both your reputation and your bottom line:

Customer Dissatisfaction 

Delivery exceptions can leave customers feeling frustrated or disappointed. This can damage your brand’s reputation and make repeat business less likely.

Operational Inefficiencies

Delivery exceptions disrupt the order fulfillment and delivery processes. They require extra time and resources to fix, which slows down your whole operation and creates inefficiencies for your business.

Financial Impacts 

Delivery exceptions can also take a toll on your bottom line. Extra costs for reshipping, refunds, or compensation quickly add up, especially if disappointed customers choose a competitor next time.

On top of that, resolving these issues often requires more time from your customer support team, increasing your staffing expenses.

Common Causes of Delivery Exceptions

Understanding the impact of delivery exceptions is only half the battle. To truly minimize these disruptions, it helps to know what causes them in the first place.

Now, let’s dive into the most common reasons these hiccups happen, so you can be better prepared and keep your customers smiling.

1. Incorrect Contact Information

Incorrect or incomplete recipient addresses are a leading cause of delivery exceptions. In fact, 74% of businesses say that bad address data is responsible for up to a quarter of their failed deliveries.

When customers provide incorrect or incomplete addresses, it often leads to a delivery failure. In many cases, the package is then returned to the sender, resulting in delays and additional costs.

2. Weather and Natural Disasters

Extreme weather events like hurricanes, rainstorms, or floods can disrupt delivery schedules by causing congestion or damaging equipment, which prolongs the expected delivery timeline.

Sadly enough, weather-related delays are mostly inevitable. This is because such severe weather can also block delivery routes, leading to additional delays and exceptions in the shipping process.

3. Customs and Regulatory Issues

International shipments may encounter customs clearance delays, inspections, or documentation requirements. For example, shipping time is prolonged due to customs package detention. Missing documentation or regulatory delays can arise from security concerns or border issues, leading to delivery exceptions.

4. Customer Unavailability

If the recipient is not available to receive the package during delivery attempts and no alternative delivery instructions are provided, it can result in failed delivery attempts and exceptions.

Delivery will be re-attempted the next day in most cases. If the retry fails, the package may be returned to the sender or held at a local facility.

5. Transportation Issues

Problems during transit, such as traffic accidents, mechanical breakdowns, or animal interference, can lead to delays or disruptions in deliveries. Unexpected obstacles like road closures or accidents can make the delivery route unpassable, causing shipment exceptions.

6. Packaging or Labeling Errors

Inadequate packaging or a wrong shipping label can cause a lot of headaches. It can lead to damaged goods, packages ending up in the wrong place, or even getting lost along the way.

Plus, if the shipping label is damaged or hard to read, that can also cause delivery exceptions.

7. Inventory or Fulfillment Errors

Wrong items can be shipped due to inventory management, picking, or packing errors in the warehouse.

For example, if a customer orders a blue sweater but receives a red one because of mislabeling, this mistake can trigger a delivery exception when discovered during shipping or delivery.

8. Holidays and Peak Seasons

Holidays and peak shopping seasons can really put shipping carrier capacity to the test. With a flood of packages and limited resources, delays and delivery exceptions become much more common.

To avoid delivery exceptions during these busy times, communicate clear delivery expectations to your customers and plan for possible slowdowns due to high shipping volumes.

9. Security and Access Issues

Security concerns or restricted access to delivery locations, such as gated communities or secure facilities, can cause delivery exceptions if the delivery driver cannot gain entry.

10. Package Theft or Loss

Even when a package says “delivered,” it might end up with a porch pirate instead of your customer.

In 2024, about 58 million packages were stolen in the US, costing businesses billions. These delivery exceptions mean more delays, reshipments, and extra headaches for online retailers.

By understanding these various causes, businesses can take proactive steps to avoid delivery exceptions and provide customers with a smoother shipping experience that enhances customer satisfaction and ensures timely delivery.

Delivery Exceptions by Carrier

Now that you know the most common reasons behind delivery exceptions, it’s important to remember that no carrier is immune to these challenges (yes, even the big names!).

Let’s take a look at how FedEx, UPS, USPS, and DHL define delivery exceptions and how they address them.

FedEx Delivery Exceptions

FedEx is renowned for its reliability in overnight and expedited shipping. However, even with their high standards, unforeseen issues can occasionally disrupt deliveries.

According to FedEx, a delivery exception typically occurs due to external factors such as severe weather conditions or unexpected vehicle problems like flat tires.

It’s important to note that a delivery exception does not necessarily mean your package will be delayed; in many cases, FedEx still manages to deliver on time.

UPS Delivery Exceptions

UPS is often trusted with shipping larger and higher-value items, making delivery exceptions particularly concerning for both senders and recipients.

According to the latest definition from UPS, an “exception” means that the shipment is still in the UPS network, but an unexpected issue has occurred that may affect the scheduled delivery date.

The specific reason for the exception will be detailed in the Shipment Progress section of the Tracking Detail page, and if the delivery date changes, the tracking status will reflect the new estimated date.

USPS Delivery Exceptions

With USPS, a delivery exception means something has held up your package.

The most common reason is a federal holiday, since USPS follows the government calendar and takes those 11 days off. Other times, it could be a bad address, weather, or the recipient not being home.

If there’s a delay, you’ll see a delivery exception notice when you track your package. USPS makes it easy to stay updated with their Text Tracking and Informed Delivery features, so you always know what’s going on with your shipment.

DHL Delivery Exceptions

DHL, which handles many international shipments, often encounters delivery exceptions during customs clearance. Simple mistakes like missing details or wrong codes can slow things down.

To avoid these issues and keep your customers satisfied, check out DHL’s customs compliance guide here before shipping. It’s a quick way to make sure your packages clear customs smoothly. 

How to Prevent Delivery Exceptions?

1. Adopt Address Verification

Make sure you’re using address verification systems at checkout to catch any incorrect shipping addresses from your customers. This simple step goes a long way in preventing delivery exceptions and failed delivery attempts, helping ensure a smooth, timely delivery every time.

On this matter, Gidon Sadovsky, founder of Overnight Glasses, advises: “Accurate address input not only ensures a smoother delivery process but also builds trust with customers by reducing delivery delays and errors that can damage brand reputation.”

2. Cooperating with Multiple Carriers

Partnering with several carriers is a smart way to reduce risk and boost delivery reliability. Plus, certain addresses have restrictions and can only be served by specific carriers.

For instance, in the U.S., only USPS can deliver to addresses like P.O. boxes, military bases, and prisons.

By knowing the limits of available shipping partners and working with the right mix, you can handle restrictions with ease and keep your deliveries running smoothly.

3. Avoid Labeling and Packaging Errors

Delivery exceptions can happen if shipping labels are incorrect, incomplete, or hard to read. So, make sure every package has a clear, accurate, and securely attached label.

Also, double-check that all shipping information matches the order details, and avoid placing tape or seams over important barcode or address areas to prevent disruptions in the supply chain.

4. Use Weather-Resistant Labels

Although we can do little to weather-related delays, when a package reaches the carrier and is on its way to its destination, the label may be damaged by rain or snow. To prevent possible obscuring of package information due to severe weather, using waterproof labels and paper might be helpful.

5. Logistics Process Optimization

Even with the best logistics strategies, accidents like vehicle breakdowns or roadblocks can still happen. But there are ways to reduce delivery exceptions and keep your supply chain agile.

• For example, storing inventory in multiple fulfillment centers lets you ship orders from the closest location, speeding up delivery and providing a backup if something goes wrong.
• Using advanced tracking technologies and being proactive with your planning can also help minimize delivery exceptions, boost efficiency, and enhance customer satisfaction.

These strategies can help decrease the risk of delivery exceptions, enhance customer satisfaction, and optimize your store operations.

How Can You Handle Delivery Exceptions?

When a delivery exception comes up, whether it’s during international shipping or a local delivery, it’s important to act quickly and keep your customer informed. Here’s how you can handle these situations step by step:

1. Identify the Cause

Start by finding out what caused the problem. Was it an incorrect address, a missed delivery attempt, or maybe a customs delay with international shipping? Contact your shipping company to get the full story.

2. Review Tracking Information

Look at the tracking details for real-time updates. This will help you pinpoint when and where the exception happened so you can decide what to do next.

3. Contact the Carrier

Reach out to the shipping company with the tracking number and explain the issue. Ask what solutions they suggest, whether it’s correcting an address, rescheduling the delivery, or updating delivery instructions to ensure successful receipt.

4. Communicate with Customers

Let your customer know about the delivery exception as soon as possible. Be clear about what happened, such as “The package could not be delivered due to an incorrect address during international shipping,” and explain the steps you are taking to fix it. Thank them for their patience, apologize for any inconvenience, and offer alternatives or compensation if needed.

5. Keep Customers Updated

Continue to follow up until the issue is resolved. Send delivery status updates by email or SMS so your customer always knows the status of their order.

By being proactive and transparent, you can transform delivery exceptions into opportunities that ensure exceptional customer experiences and foster lasting customer trust.

How Does ParcelPanel Help You Manage Delivery Exceptions?

ParcelPanel is a handy platform designed to simplify your e-commerce order tracking and help you tackle delivery exceptions with ease. It is packed with features that make managing and resolving delivery hiccups much smoother, including:

Multi-Carrier Tracking

Working with multiple carriers is a smart way to reduce delivery exceptions, and ParcelPanel makes managing them effortless. Supporting over 1,400 carriers worldwide, including USPS, UPS, FedEx, DHL, YunExpress, Australia Post, China Post, and many more, ParcelPanel lets you track all your orders in one place. With real-time updates, you can easily monitor your shipments and quickly spot any delivery exceptions before they become bigger issues.

Real-Time Tracking Updates

ParcelPanel automatically sends shipping notifications to your customers, keeping them informed every step of the way. If a delivery exception occurs, customers receive instant email alerts. You can customize these messages to reassure customers that you’re actively handling the situation, helping to build trust and satisfaction.

Analytics and Reporting

ParcelPanel offers detailed analytics and reporting tools that give you valuable insights into your delivery performance. By tracking your delivery rate, exception rate, and shipping times, you can make smarter, data-driven decisions to optimize your shipping process, reduce exceptions, and improve overall customer satisfaction.

By making good use of ParcelPanel’s features, you can proactively manage and resolve delivery exceptions, improving the overall customer experience and optimizing your shipping operations.

Conclusion

Delivery exceptions aren’t always avoidable, but many can be prevented with the right approach. In this article, we’ve walked through what they are, why they happen, and how you can handle them more effectively.

At the end of the day, it’s all about keeping your customers informed and resolving issues quickly. That’s where ParcelPanel can really help. It gives you the tools to manage delivery exceptions, ease customer concerns, and reduce future problems.

If you’re ready to make delivery smoother for both you and your customers, give ParcelPanel a try.