The 5 Most Common—and Costly—Shipping Mistakes

Did you know a shipping error created the multibillion-dollar chicken industry we currently have?

In 1923, Cecile Steele, homemaker and farmer from Ocean View, Delaware, who kept a small flock of chicken for eggs like many other rural Americans, received a delivery of 500 birds—10 times more than she ordered.

At the time, even bigger farms only had about 300 birds, and returns weren't what we enjoy now in the ecommerce era. So, Cecile kept the birds, and four and a half months later, though over 100 of the 500 chicks died, she still made a sizable profit off the survivors.

Encouraged by this success, she decided to ramp up her operations. Within three years, the Steele family were raising 10,000 chickens. News of this success spread, and by 1928, hundreds of farmers were raising chickens primarily for their meat whereas before, they raised chickens solely for eggs and killed them when they stopped producing eggs.

While a shipping mistake brought fortune to the Steele family, most shipping mistakes only lead to loss of resources, additional operational costs, and reduced customer satisfaction.

This article will discuss the most common shipping mistakes and how to resolve them to turn your shipping operations into a less complex process.

The 5 Most Common Shipping Mistakes & How to Resolve Them

No business has 100% accuracy, so errors are bound to happen. Regardless of how the mistake happened, what is most important is how you recover from them. When an error leads to a customer without their ordered product, what do you do as an ecommerce brand or as a third-party logistics (3PL) provider?

First, own the mistake. Reach out with an explanation where you take full accountability and refund or replace the damaged item with expedited shipping if possible. A simple “we’re really sorry for the mix-up and any trouble this caused” goes a long way.

Second, dig in to figure out what went wrong. And, most importantly, take steps to make sure it doesn’t happen again. This two-step process may seem a little oversimplified, but this basic formula is the recipe for success for resolving shipping mistakes.

Diving in a little deeper, below is a closer look at the most common shipping mistakes and what causes them:

1. Inaccurate Order Processing

Inaccuracy can happen at different areas of order processing, which can lead to businesses shipping the wrong order; incorrect size, variant, or quantity; or order processing errors. There are so many versions of order processing errors in warehousing that happen daily—leaving consumers frustrated and brand reputations tainted.

These mistakes are often caused by manual data entry errors—especially when relying on pen and paper methods—or process inefficiencies caused by using outdated, legacy warehouse management systems (WMS) without integrations capabilities.

Social media is overflowing with stories highlighting shipping errors that are so far off that they’re nearly incomprehensible. For example, this customer ordered a Crua monitor for his PC gaming system and got a senior walker instead. This isn't just an inconvenience; it highlights a serious shipping error where someone else's essential mobility aid is now sitting unused in the wrong place.

The error in this example likely stems from a series of order processing errors in the warehouse. First, the wrong item (a senior walker) was probably picked instead of the monitor, perhaps due to similar packaging, inventory discrepancies, or human error. Then, the wrong shipping labels were applied, suggesting either a printing error or a label swap. This also happened because of no double checks, order validation, or quality control.

2. Improper Packaging and Handling

The National Retail Federation (NRF) reports that for every $1 billion in sales, the average retailer incurs $145 million in merchandise returns. When asked why they returned items, DealNews found that 56% of online shoppers said the item was damaged or defective.

Chances are, your warehouse isn’t shipping products that were already damaged in storage. Rather, these issues most likely arise during the shipping process because of handling errors like cost-cutting measures, improper packaging/cushioning, or using damaged boxes. These faults are then exacerbated by rough treatment, incorrect stacking, or exposure to the elements.

When products are damaged, consumers expect full refunds—a direct hit to a brand’s bottom line. Chargebacks911 estimated that this volume of chargebacks cost global businesses over $117 billion in 2021 alone.

Add to this the labor cost to pick, pack, and dispatch the original item (and potentially a replacement); the freight both coming and going; the labor to receive and sort the now-returned item; the packaging materials; and the sorting facility’s overhead, and the financial hit of product returns is even bigger.

For example, this Postie delivery guy had a fragile box of wine’s bottom fall out while he was walking up to deliver it on the consumer’s doorstep. This highlights how poor packaging—combined with handling errors—can lead to catastrophe (and why it’s important to get packaging perfect from the outset).

3. Poor Labeling and Documentation

Mislabeling, missing or incomplete documents—like customs forms, a bill of lading (BOL), shipping manifests, missing invoices, or necessary certifications—can result in shipment delays or rejections at customs. To avoid increased transit times and frustrating shipping delays, ensure all the required documentation is complete and packages are labeled correctly, especially for international shipping.

For example, this TikTok user shared how they ordered six things from a TikTok shop and 2 of them arrived while 4 were sent back to the sender because of an incomplete address. In her video, she explained that this was happening because the seller was only adding her apartment building address without including adding the apartment number.

Incorrect shipping labels can mean lots of things (e.g., the label is smudged and unreadable or the package is missing a barcode or tracking number). It can also be something like getting the weight or dimensions of a package wrong, which can lead to shipping delays and extra fees or surcharges.

4. Carrier and Transit Mishaps

According to a study by YouGov for parcelLab, 37% of survey participants recorded an average of two to five late or missing packages for high-priority items. Suffice it to say, lost or misplaced packages are a more-than-common problem.

Losing a package means more than disappointing a customer. When choosing shipping options, many companies only consider shipping rates and choose the carrier with the most favorable pricing. But, these savings may disappear if your shipping solution is unreliable, resulting in return costs and lost future business.

If a package goes missing after it’s out of your hands, don’t act like it’s not your problem anymore. Instead, play detective. Call your carrier and ask them to track down the package. If the shipper can't find the package after searching high and low, it's time to make a claim. The shipping company will investigate what happened and might refund you for the lost item, especially if you paid extra for insurance when you shipped it.

While all this is happening, keeping the customer in the loop is important. Let the customer know you're looking for their package, and apologize for the delay. But don't stop there; offer to send a new package immediately, with faster shipping, to compensate for the lost time. You can also offer a refund or discounts on their next purchase.

It's not always the brand’s or carrier's fault when a package is missing. Things outside everyone’s control sometimes happen, but it’s still up to the retailer to find a way to make things right with their customers.

5. Delivery Errors

Imagine that you order a new pair of shoes online. You track the package; it's out for delivery, and you eagerly wait by the door. But then, you get a notification: "Delivery attempt failed." The delivery driver tried to drop off your package, but you weren't home, or they couldn't access your apartment building. Now what?

Per the same study from parcelLab mentioned above, 27% of survey respondents said their packages were left at the wrong address. This is one of the most common shipping errors that retailers need to handle carefully, even though it often isn't directly their fault.

After all, a failed delivery attempt can be a real downer for the customer, but a good business knows how to smooth things over and make the situation right.

Another common delivery issue is package theft from doorsteps or delivery vehicles. "Porch pirates" have stolen at least 58 million packages valued at $12 billion over the past year, per Security.org’s 2024 Package Theft Report.

When this happens, offer to reship the item if it’s still available using a more secure delivery method. Alternatively, you can issue a full refund and help the customer file a claim with the carrier if the package was insured.

Solidify Your Shipping Process with Extensiv

Mistakes during shipping are bound to happen (especially during peak season), but why settle for 75% accuracy when you can get 99.9% order accuracy with Extensiv? Whether as a 3PL or ecommerce brand, Extensiv provides 360 degree, real-time visibility and capabilities ranging from warehouse management, order management, and inventory management with robust integration capabilities.

Here’s how Extensiv supports ecommerce brands:

• Reduce errors with pinpoint accuracy: Say goodbye to mispicks, incorrect labels, and missed deadlines. Our platform optimizes your entire fulfillment process, ensuring orders are fulfilled flawlessly every time.
• Boost customer satisfaction: Deliver a delightful delivery experience with on-time, accurate shipments that exceed expectations. Happy customers mean repeat business and positive reviews.
• Increase efficiency and save money: Streamline your operations, automate tedious tasks, and negotiate the best rates with our powerful carrier network. Extensiv helps you save time and money while maximizing productivity.

Here’s how Extensiv supports 3PLs:

• Enhance efficiency and accuracy: Streamline your entire workflow, from pick and pack to label printing and carrier selection. Minimize errors, reduce packing times by 50%, save an average of 3 minutes per order, and maximize throughput.
• Optimize your carrier mix: Effortlessly compare rates across all your carriers to find the best option for each shipment—balancing cost, speed, and customer preferences.
• Delight your clients: Offer a seamless and reliable shipping experience that keeps your clients happy and coming back for more.

Ready to set a new standard of shipping excellence? Request a demo today to discover how Extensiv can transform your fulfillment operations.