Flexport has implemented a solution to proactively identify and replace packages for orders that are lost within the Flexport network - packages that leave the warehouse and do not reach the Carrier or the Flexport sortation center. This happens infrequently and our end goal is to minimize the occurrence of lost packages, but we aim for fast detection of lost packages and proactive replacement when possible to ensure your customers receive their order.
Note: At this time, we are NOT automatically replacing packages that have left the Flexport network. In other words, we're not auto-replacing packages when they're lost while in possession of the Carrier. For shipments that have 7 calendar days of inactivity, merchants can still submit a claim.
How It Works
Flexport tracks all packages leaving fulfillment centers and monitors the time it takes for packages to arrive at the sortation center. If a package goes 3 days without reaching the sort center after leaving the fulfillment center, we count that package as lost. Once Flexport identifies a package as lost within the Flexport network, we will proactively ship a replacement using the same tracking code. We will then send an email informing you of the re-shipment and we will either:
1. Show the amount automatically reimbursed. We can only do this if we know the retail price of the product(s) in the package. We're currently ingesting retail price for Shopify SKUs. In future quarters, we will begin to ingest retail price from other channels.
2. Request the the documentation needed to reimburse you for the lost unit(s). This will be required if Flexport is unable to ingest retail price from our channels.
1. Flexport detects a package as lost.
2. Flexport ships a replacement package from the same fulfillment center OR a fulfillment center in the same regional hub as the original package. The replacement shipment has the same tracking code as the original shipment.
3. The Flexport team emails merchants notifying you about the replacement package. The subject line of the email will read "Flexport Lost Package Alert: Your [marketplace e.g Shopify, Walmart, ebay] order [order ID] has lost packages".
4. In instances where we know the product retail price, Flexport will automatically reimburse merchants for the lost products. The email will state that there is no further action required. Otherwise, in order to be reimbursed for the lost product, merchants must reply to the email with the wholesale value of the product.
This is the status you will see in Flexport Portal as soon as Flexport creates a replacement package:
There will also be an event in order history when the replacement package is created:
4. Flexport will reimburse 40% of retail cost + the fulfillment fee OR wholesale cost + fulfillment fee. This aligns with our standard Claims policy.
5. Flexport will also send you an email if a package was identified as lost and we weren't able to replace it. This is unlikely, but it can occur due to circumstances such as a stockout at the original fulfillment center. In this scenario, Flexport will reimburse the wholesale value and the fulfillment fee when you send the proof of wholesale cost, but a manual order must be created in order to send the customer a replacement since Flexport was unable to ship a replacement automatically.
This is the status you will see in Flexport portal when a replacement could not be created:
Opt out of automatic replacements: If you wish to opt out of auto replacement packages, please contact Support.
For merchants who opt out of replacement packages, Flexport will still reimburse our merchants for product(s) we detect as lost. We will send merchants an email informing you of the reimbursement when this occurs.
As we look forward to improving upon this process, there are a few important features that we aim to implement.
1. Flexport Portal Notifications: When a replacement is shipped, Flexport will include this event as a notification within Flexport Portal to provide you with greater visibility on order issues.
2. Opt-out Setting for Replacement Packages: We are exploring whether merchants will need the option to opt out of replacement packages or if auto-replacements are a feature that merchants want always on.
3. Buyer alerts on our tracking page: In the future, we plan to notify buyers when a package was lost and a replacement was shipped on our Flexport tracking page.
For comments or questions, please reach out to our Support team.