Shipping exceptions are inevitable in eCommerce and supply chain operations—but what exactly do they mean, and how should businesses respond?
What Is a Shipping Exception?
A shipping exception refers to any unexpected event or disruption that interrupts the normal shipping process, temporarily preventing a shipment from being delivered as planned. Unlike routine delays, shipping exceptions can arise for many reasons: address errors, recipient absence, customs holdups, severe weather, or damaged goods. In many cases, exceptions do not mean the package is lost—delivery may simply require resolution of the issue first. (Track-POD definition)
Summary Table: Shipping Exception vs. Shipping Delay vs. Order Error
| Term | Definition | Typical Causes | Is Delivery Impacted? |
|---|---|---|---|
| Shipping Exception | An unexpected event disrupting or altering a planned shipment process | Address error, customs, weather, damage | Sometimes (may delay or reroute) |
| Shipping Delay | The package arrives later than scheduled but without process anomaly | High volume, weather, route inefficiency | Yes (late delivery) |
| Order Error | Mistake in order entry/fulfillment (not shipping-specific) | Wrong item, wrong quantity, input error | Possibly (wrong or failed delivery) |
How Are Shipping Exceptions Flagged?
Modern logistics systems automatically detect and classify exceptions. When a shipment scan at any checkpoint doesn't match the expected process (e.g., an invalid address or customs stop), the system flags it as an exception, triggering alerts for intervention. Exception codes and notifications are standard across carriers such as UPS, improving transparency and response speed.
Common Causes and Real-World Scenarios
- Address Issues: Incomplete or incorrect recipient information leads to failed delivery attempts.
- Recipient Absence: No one is available to receive or sign for the package.
- Customs Clearance: Delays from import/export paperwork or inspections.
- Severe Weather & Natural Events: Storms, floods, or earthquakes disrupting transit routes.
- Damaged or Lost Packages: Physical problems detected in transit.
Scenario: During Black Friday, an apparel retailer experienced a surge in shipping exceptions due to customers inputting old or misspelled addresses. By closely monitoring daily exception reports and proactively contacting affected customers, the retailer verified correct information and reshipped most items within 24 hours—minimizing lost sales and reputation impact.
Impact on Deliveries and Your Business
Shipping exceptions can:
- Delay or reroute deliveries
- Increase customer support workload
- Negatively affect customer satisfaction and reviews
- Distort key performance indicators (KPIs) such as delivery times and on-time percentages However, not all exceptions result in failed deliveries—swift resolution can preserve a positive customer experience.
How to Manage Shipping Exceptions
Proactive Steps:
- Keep customer addresses accurate with verification tools
- Use logistics software with real-time exception alerts
- Train customer service teams to respond quickly
- Communicate proactively with buyers about issues Reactive Steps:
- Immediately investigate the cause upon receiving an exception alert
- Contact logistics partners or customers to resolve address or documentation issues
- When possible, arrange for a second delivery or rerouting
In Summary
Shipping exceptions are a broad category of shipment disruptions, distinct from mere delays or order entry errors. By understanding their origins and acting swiftly, eCommerce and supply-chain teams can greatly reduce their negative impact.
Related Terms:
- Delivery Exception – Similar, but may be used interchangeably by some carriers
- Shipping Delay – A late shipment, not always due to an exception
- Order Error – Mistakes at the ordering or fulfillment stage, before shipping
Further Reading: