Porch Piracy: How to Handle “Package Not Received” Claims Without Losing Money
Key Takeaways
- Porch piracy is a major cause of “package not received” claims, with over 100 million packages stolen annually in the U.S., costing retailers billions.
- Effective resolution requires coordination across customer service, operations, and fraud prevention, supported by clear policies and strong proof-of-delivery documentation.
- Shifting at-risk deliveries to secure commercial pickup locations can drastically reduce losses.
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What Is Porch Piracy and Why It Matters
Porch piracy refers to theft of packages after delivery, often from doorsteps or mailrooms. It affects millions of American households yearly, causing significant financial losses for merchants who absorb costs from lost items, refunds, chargebacks, and increased fraud risk.
The problem stems from last-mile delivery challenges: unattended packages left in visible spots create easy targets. Research shows most thefts occur within 25 feet of the curb, highlighting the opportunistic nature of thieves.
The problem stems from last-mile delivery challenges: unattended packages left in visible spots create easy targets. Research shows most thefts occur within 25 feet of the curb, highlighting the opportunistic nature of thieves.
Causes of “Package Not Received” Claims
Not all claims are theft-related. Common causes include:
- Fulfillment or carrier errors (wrong address, premature delivery scans)
- Packages placed in unexpected locations without notice
- Porch piracy and organized theft
- Friendly fraud, where customers falsely claim non-receipt
Building a Clear “Package Not Received” Policy
A public-facing INR policy sets customer expectations and reduces confusion. Key elements:
- Reporting timelines (e.g., within 3–7 days of delivery)
- Required customer evidence (address verification, neighbor checks, photos)
- Defined resolutions based on claim history and evidence strength
- Risk transfer language clarifying liability shifts after delivery confirmation
- Promotion of secure delivery options such as pickup points
Handling “Package Not Received” Claims: A 7-Step Workflow
- Verify tracking details and delivery status.
- Confirm shipping address accuracy.
- Ask customers targeted questions about package location.
- Contact carriers for delivery investigations.
- Classify claims by cause (carrier error, theft, friendly fraud).
- Decide resolution based on order value, customer history, and evidence.
- Document all communications and evidence thoroughly.
Proof of Delivery: Your Best Defense
Proof of delivery (POD) includes delivery time, location, driver notes, and enhanced elements like signatures, GPS coordinates, and photos. Signature confirmation is especially valuable for high-value or high-risk orders.
Automated POD access via carrier APIs helps streamline evidence retrieval during disputes.
Automated POD access via carrier APIs helps streamline evidence retrieval during disputes.
Preventing Porch Piracy
Prevention is more cost-effective than handling claims. Strategies include:
- Collecting detailed delivery instructions at checkout.
- Offering flexible delivery options such as parcel lockers and local pickup points.
- Using commercial pickup networks like Via.Delivery’s network of 35 thousands of secure locations.
- Employing smart packaging to avoid advertising valuable contents.
- Sending real-time delivery notifications to customers.
- Analyzing carrier performance and routing high-risk areas to secure options.
Managing Friendly Fraud and Chargebacks
Friendly fraud occurs when customers dispute legitimate transactions to avoid payment. It adds fees and operational costs.
Effective dispute management involves:
Effective dispute management involves:
- Standardized response templates with order, tracking, and communication evidence.
- Collaboration with payment processors for automated evidence submission.
- Proactive communication to reduce chargeback likelihood.
When to Refund, Reship, or Decline Claims
Follow consistent criteria:
Use empathetic yet firm communication and offer compromise solutions like discounts or store credit.
- Reship for first-time, low-value claims with ambiguous delivery records.
- Refund if carrier or merchant errors are confirmed.
- Decline for repeat claimants or strong delivery proof contradicting customer claims.
Use empathetic yet firm communication and offer compromise solutions like discounts or store credit.
Alternative Delivery Models to Reduce Claims
Traditional residential delivery has inherent risks: unattended packages, lobby access, and limited recipient verification.
Commercial pickup points offer staffed, secure locations with ID verification and reduce theft risk.
Via.Delivery’s BOPA network integrates easily with e-commerce platforms, enabling merchants to offer pickup options without building infrastructure.
Commercial pickup points offer staffed, secure locations with ID verification and reduce theft risk.
Via.Delivery’s BOPA network integrates easily with e-commerce platforms, enabling merchants to offer pickup options without building infrastructure.
Training and Monitoring
Regular team training, internal playbooks, and monitoring key metrics (claim rates, chargebacks, resolution times) ensure consistent handling and continuous improvement.
Adjust delivery strategies based on data insights to reduce losses.
Adjust delivery strategies based on data insights to reduce losses.
Conclusion
Porch piracy and INR claims significantly impact e-commerce margins. Implementing clear policies, robust proof-of-delivery, disciplined workflows, and secure delivery alternatives like Via.Delivery’s BOPA network can transform this risk into manageable loss prevention.
Auditing your current processes and adopting secure delivery options will protect your bottom line and improve customer satisfaction.
Auditing your current processes and adopting secure delivery options will protect your bottom line and improve customer satisfaction.
FAQ
How long to wait after “Delivered” before classifying a package lost?
Typically 24–48 hours, allowing time for packages to be found with neighbors or building staff.
Should I require signatures for high-value orders?
A balanced approach sets a threshold (e.g., $200–$300) and offers customers a choice between signature confirmation or secure pickup.
What if carriers deny liability for missing packages?
Use your INR policy and evidence to decide on refunds or denials, and adjust delivery strategies in problem areas.
How to handle repeat claimants?
Flag accounts with multiple claims for manual review and consider requiring signatures or pickup delivery.
Is pickup-point delivery complicated for small merchants?
Modern platforms like Via.Delivery offer easy integrations and tools to start offering pickup options without heavy lifting.
Typically 24–48 hours, allowing time for packages to be found with neighbors or building staff.
Should I require signatures for high-value orders?
A balanced approach sets a threshold (e.g., $200–$300) and offers customers a choice between signature confirmation or secure pickup.
What if carriers deny liability for missing packages?
Use your INR policy and evidence to decide on refunds or denials, and adjust delivery strategies in problem areas.
How to handle repeat claimants?
Flag accounts with multiple claims for manual review and consider requiring signatures or pickup delivery.
Is pickup-point delivery complicated for small merchants?
Modern platforms like Via.Delivery offer easy integrations and tools to start offering pickup options without heavy lifting.