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What should seller do if package gets lost in the mail?

Question:

I operate an online store located in Israel, with most sales to the US. We ship via Israel Post, which is then handled in the US by USPS. Approximately 1 in 500 or 1 in 1,000 parcels mysteriously disappears, never to be found. In such cases, we don’t know whether the onus falls on us entirely to send the customer a replacement. My assumption is that we should have a policy clearly stated on our website, and obviously should adhere to that policy. If so, do you have a recommendation for what the policy should be? (Insured shipping is not a viable option in our case.)

Answer:

It seems that the minhag is that the seller absorbs the loss, (besides that it is good business practice), unless you want to specifically write that it is on the buyer.

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