How do I process a damage claim with UPS?

Prior to filing a claim, it is best to try and workout a settlement with the end user to save time and money in the processing of the transaction.  Also, the buyer might be ok with using the item damaged and is just upset about it and needs to vent.  A settlement that does not need manager approval  would be up to 20% of the selling price.  For example, a $200 order total can be be refunded up to $40.  

When a buyer informs us that a package arrives damaged, the following steps should be taken.

1.  Ask the buyer, or the buyer's buyer how they would like us to resolve the matter.  The typical responses would be:
a. Send a replacement
b. Give me a refund

2. If the buyer asks for a replacement, we will need the buyer to return the damaged item before we can send a replacement item.  If the buyer does not want to wait, they will have to purchsea a second item.  Exchanges are not allowed.

3. If the buyer asks for a refund, the following should be considered.
  • a. What is the total selling price with shipping that the seller sold the item for.  If it was below $25, just refund the order and move on.
  • b. Was insurance purchased by us before we shipped the item?  Most likely NO.  If it was a special order or the supplier is known to insure orders up to $1000 (we will definitely want to file a UPS claim)
  • c.  If the amount is over $100, the most we can claim with the shipper (UPS) is $100 (if prior insurance was not purchased).  When completing the claim form, we should always ask for the LARGEST amount possible which is the amount the end user paid.  If the buyer is an affiliate, the end user is the affilitaes customer, not our affiliate.
4.  When the refund is given, a store note should be added to the invoice header explaining the steps taken.  If a UPS claim form was created, the UPS claim form id should be stored in the invoice header, so that we can reconcile it later.  

5.  The inventory status should be changed to NEEDS REVIEW to remind us that this transaction was defective and needs review.

6.  Once the UPS claim is refunded, we need to update the invoice and adjust our cost on the order.  For example, if buyer decided to have us send a new item, we have to double our cost from the supplier for the part and shipping, and then reduce our cost by the amount credited from UPS if they approved our claim.

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