A parcel counts as lost when it stops registering tracking events for several days and the carrier can't physically locate it — not when it's merely late. The distinction matters because the claim clock runs from the ship date, and many brands let the window close while waiting for the parcel to "turn up on its own."
This guide covers what to do when it happens, in the order it needs doing.
Delay, loss and disputed delivery are not the same thing
Three situations that look alike in tracking and resolve differently:
| Situation | What tracking shows | How it resolves |
|---|---|---|
| Delay | Still registering events, just slower | Wait; it almost always arrives |
| Loss | No events for several days, last known position in transit | Formal claim with the carrier |
| Disputed delivery | Marked delivered, customer says they never got it | Investigation using proof of delivery |
The third is the most uncomfortable and more common than it looks. Before treating it as theft, it's worth requesting the carrier's proof of delivery — receiver name, timestamp and sometimes a photo or signature — and asking the customer to check with neighbors, the building's front desk or reception. A real share of these cases resolves right there.
What to do, in order
1. Pin down the dates. Record the ship date and the date of the last tracking event. Every deadline counts from there, and it's the first thing you'll be asked for.
2. File with the carrier, not with your customer. The claim is filed by whoever contracted the shipping service — normally you, not the recipient. If you wait for the customer to do it, you lose time and they often have no standing to file at all.
3. Assemble the evidence before it's requested. A typical file includes:
- Tracking number and proof of shipment
- Invoice or proof of the goods' value
- Description and contents of the parcel
- Declared weight and dimensions
- Tracking screenshots showing the last position
- Recipient contact details
4. Make the customer whole in parallel, without waiting for the ruling. This is the point that separates brands that retain customers from those that don't. A carrier claim can take weeks. Your customer has no contractual relationship with the carrier: they bought from you. Replacing or refunding quickly and collecting your payout later is almost always cheaper than winning the argument and losing the buyer.
5. Log the cause. One isolated loss is bad luck. Three in the same quarter, on the same route or with the same carrier, is a pattern you fix by changing provider or packaging.
The payout rarely covers what your product is worth
Here's the fine print that surprises nearly everyone the first time.
Parcel carriers typically cap their liability at a standard maximum amount per shipment, unrelated to what's actually inside the box. If you shipped something worth 8,000 pesos on the standard rate, the payout tops out well below that. It isn't a hidden abuse: it's the pricing model. The base rate covers transport, not insurance.
For the real value to be covered you have to declare the value of the goods when generating the label and pay the corresponding charge. It's a per-shipment cost decision best made by price band: declaring everything is expensive, declaring nothing is a gamble.
Two nuances worth knowing:
- Your warehouse insurance does not cover transit. They're separate coverages. We explain it in goods insurance in a warehouse: what it covers and what it doesn't.
- Claim deadlines are short and strict. They vary by carrier and service type, and they live in the contract or the terms of service you accepted. Read them before you need them — which is exactly when nobody reads them.
We don't publish specific amounts or deadlines here because they change by carrier, by service and over time; the number that matters is the one in your current contract.
How to make it rarer
Losses can't be eliminated, but they can become rare:
- Legible, redundant labeling. Label well adhered, no wrinkles or tape over the barcode, and the recipient's details printed inside the box as well. A parcel whose label peeled off isn't lost: it's nameless.
- Packaging that survives the belt. Most "lost" small parcels are parcels that opened, separated from their label or slipped into another container. This connects with volumetric weight and packaging.
- Addresses validated at checkout. Wrong postal codes trigger rerouting, and every reroute is a chance to go missing.
- Tracking reviewed by exception. You don't need to watch every shipment: you need an alert for the ones with no movement for more than X days. That's where an operator with a system warns you before your customer writes in.
Frequently asked questions
When is a parcel officially considered lost? When it stops registering tracking events for several days and the carrier can't locate it physically after an internal search. The exact window is defined by each carrier in its terms of service.
Who should file the claim, the store or the customer? Whoever contracted the shipping service, which is normally the store. The recipient usually has no standing to file because they aren't party to the transport contract.
Do I have to replace the order even if it's the carrier's fault? Commercially yes, and it's best done without waiting for the ruling. Your customer bought from you, not from the carrier. Recovering the payout is your matter with your provider.
Why is the payout so low? Because the base parcel rate covers transport, not goods insurance. For the real value to be covered you have to declare it when generating the label and pay the additional charge.
If losses and disputed deliveries are becoming frequent, there's almost always something upstream of the carrier that can be fixed. See our shipping service and we'll review together what's happening on your route.