An update of a Specialty Shop Retailing blog post from 2009

It’s been 15 years since I last wrote about how to deal with errors in shipments coming in from our vendors, and I still stand by my first sentence: The pickled pig feet were probably the worst.  Some of the bottles in another shipment on the common carrier’s truck broke, spilling broken glass and a fragrant liquid all over our boxes of gift merchandise. The trucker who delivered our shipment wasn’t any happier about it than we were. But damaged, defective, substituted and missing goods are all in a day’s work for the receiving area of a retail shop.

What do you do when you receive a problem shipment?  Tracking claims is one of the areas that can make a big difference in how much money you have left when all is said and done. Although we have a policy of not spending the time or money to claim anything under $10 wholesale, there are many shipments with damage or shortages that come to considerably more than that.

Damaged goods need to be reported right away to the shipping company, if it appears to be their fault, or to the vendor if that is where the problem originated. Sales reps can be very helpful in dealing with claims, but we normally start by communicating directly to the company.  Use a smart phone camera to take document any breakage or defects, and e-mail several photos with your claim as proof.

Be sure to specify what the problem is, including the SKU and invoice number, and say whether you prefer replacements or a credit. Processing an order for just a few items is expensive for both you and the vendor, so we’ll usually ask for credit unless we have a specific need such as wanting to complete a set or a display.

If the vendor wants damaged, incorrect or excess merchandise back, ask for a call tag to be sent. You should not have to pay for returning merchandise that you didn’t order or that was defective/broken. In fact, if the broken goods are heavy, you could ask for a refund of some of the shipping as well as the cost of the merchandise.

Shortages are a common problem in many of the shipments we receive. It is essential that you compare the purchase order and packing list with what is actually received in order to make a prompt claim for any shortage.  Unfortunately these claims sometime come down to your word vs. the vendor’s word. Prompt and honest reports of shortages will help maintain your credibility, and establish a good relationship with vendors so that they are willing to efficiently handle any shipping problems that arise.

Happy Retailing,

Carol “Orange” Schroeder