Understanding The Dreaded Shipment Exception And How To Fix Them Fast

Shipping Exception? Here’s What It Actually Means

If you’ve run an ecommerce brand long enough, you’ve seen it: the dreaded “delivery exception” update in a carrier’s tracking status. It sounds harmless, but it can spark a chain reaction, delays, customer complaints, refund requests, and even lost lifetime value.

A shipment exception is just a fancy way of saying your package didn’t follow the normal delivery process. Something, an incorrect address, severe weather, or a customs delay, got in the way. What does a shipment exception mean? It means there has been an unexpected event or issue in the shipping process, and this status update alerts you to a disruption that may cause a delay, but does not necessarily indicate a lost package. Sometimes it’s resolved in a day. Sometimes it spirals into a full-blown customer service crisis. However, a shipment exception does not always mean the package will arrive late; it simply disrupts the planned delivery timeline and may temporarily delay the package’s delivery.

I’ve spent the last eight years managing a nationwide warehouse network and watching ecommerce operators wrestle with exceptions, especially during peak shipping seasons. This article breaks down why they happen, what they cost you, and how to prevent them.

Understanding Delivery Status

In today’s fast-paced logistics world, understanding your package’s delivery status is more important than ever. Every update in the shipping process, whether it’s “in transit,” “out for delivery,” or a “shipment exception,” tells a story about where your package is and what might be affecting its journey. Major carriers like FedEx provide tracking numbers so you can follow your package every step of the way. When you see a status like “temporarily delayed” or “exception,” it means an unexpected event, such as bad weather, an incorrect address, or a customs snag, has interrupted the normal flow of delivery. Recognizing these delivery statuses helps both businesses and consumers set realistic expectations and respond quickly. For example, if a shipment is delayed due to weather-related delays, you’ll know to anticipate a later delivery and can plan accordingly (e.g., notify the customer proactively). Staying informed about your package’s status is the first step in navigating shipment exceptions and ensuring a smoother shipping process.

The Most Common Types of Shipment Exceptions

1. Address Issues

More than half the exceptions I’ve seen start with a bad shipping address: wrong zip code, missing apartment number, incorrect formatting, or missing information. Carriers like FedEx flag these as a delivery exception and either hold the shipment or send it back. It’s fixable, but it costs you: re-shipping, delays, and sometimes a lost customer.

2. Weather and Natural Disasters

Weather-related delays are the most “forgivable” exceptions in the eyes of customers, but only if you communicate early. Snowstorms, wildfires, hurricanes, natural disasters, and adverse weather conditions stop trucks, delay planes, and jam up distribution hubs. Expect “shipment delayed due to weather” tracking updates across all major carriers during seasonal surges.

3. Customs Delays on International Shipments

Customs can hold packages over missing documentation, regulatory issues, or unpaid import duties. Even if you ship using Delivered Duty Paid (DDP), if the commercial invoice or product description is off, the package might be flagged, triggering a shipment exception that can delay delivery for days or weeks. Having a UPS tracking number allows customers to monitor their international shipments and stay informed about customs-related shipment exceptions.

4. Missed Delivery Attempts

If the recipient’s address requires a signature and nobody’s home, it’s marked as a delivery attempt. Carriers usually try again, but after a few failed attempts, they’ll mark it as a delivery exception, return it to the sender, or drop it at a pickup location.

5. Carrier or Hub Issues

Packages sometimes get stuck because of vehicle breakdowns, labor shortages, or a simple logistics world reality: too many boxes and not enough people or truck space. Especially during the holiday rush, even reliable carriers miss scans or reroute packages inefficiently.

6. Damaged or Lost Packages

If a barcode gets smeared or a label falls off in the rain, the package may end up in a lost pile. When you see a tracking status that hasn’t updated in days and says “exception,” this might be the issue. Even stellar customer service can’t fix it if you can’t locate the box.

*A table with a more complete list of exceptions and how to address each of them is available at the bottom of this page.

Why Shipment Exceptions Matter More Than You Think

You might think exceptions are just shipping hiccups. But here’s what I’ve seen time and again: they ripple into core business metrics:

• Shipping costs rise as you refund customers, reship orders, or expedite replacements.
• A well-trained customer service team is essential for handling shipment exceptions and maintaining customer trust, especially when they get flooded with WISMO (Where Is My Order?) tickets.
• Customer satisfaction plummets, especially if you don’t notify customers proactively.
• Reviews suffer because most buyers blame the seller, not the shipping carriers.
• Lost packages hurt inventory accuracy and cash flow.

If you’re not actively managing delivery exceptions, you’re bleeding trust, revenue, and operational efficiency.

Consequences of Shipment Delays

Shipment delays can have a ripple effect on both e-commerce businesses and their customers. When a shipment exception occurs, it often leads to increased shipping costs: think reshipping packages, issuing refunds, or handling returns. For commerce businesses, especially during peak shipping seasons, these delays can damage customer satisfaction and erode trust, making it harder to retain loyal buyers. In the world of ecommerce, where fast and reliable delivery is a key differentiator, repeated shipment delays can quickly tarnish a brand’s reputation. Customers may become frustrated or choose competitors if their packages don’t arrive on time, especially during critical periods like holidays. To minimize the impact of potential delays, proactive communication is essential. Notifying customers early and providing regular tracking updates can help manage expectations and turn a potentially negative experience into a positive one. Ultimately, staying ahead of shipment exceptions and delays is crucial for protecting your bottom line and keeping customers happy.

“I really like the [Cahoot] Shipment Insights feature that lets me see any problems before the customer knows. We’ve saved thousands of dollars over the last 6 months, and my customers are delighted I can offer the same nationwide shipping as Amazon. Cahoot definitely under-promises and over-delivers. Call these guys!”

~ Sam Krausz, Fastest Handling Time

Speak to a fulfillment expert

How to Prevent Shipment Exceptions

Here’s what high-performing ecommerce teams (and fulfillment networks like Cahoot) build into their operations to keep exceptions rare. Proactive planning for deliveries, including choosing reliable carriers and accounting for holiday closures, is essential to minimize shipment exceptions and avoid delays.

1. Validate Every Shipping Address

Use software to standardize, verify, and autocomplete addresses. Don’t ship until the recipient’s address passes validation. Especially critical during international shipping.

2. Pack Smarter, Label Better

A damaged or illegible label causes more exceptions than you’d think. Use weather-resistant thermal labels, or secure them with clear pouches. Avoid incomplete addresses and double-print if needed.

3. Use Multi-Carrier Strategies

Each carrier has strengths. UPS might outperform FedEx in one zone; only USPS can deliver to PO Boxes. Use reliable carriers across lanes, not just one-size-fits-all. Bonus: if FedEx advises a regional delay, you can reroute to another carrier or warehouse to ship the order.

4. Track Exceptions in Real Time

Use shipping software or tools that monitor tracking updates across all orders. When a status update shows “exception,” alert your team, or better yet, your customer, automatically.

5. Avoid Risky Weather

Modern fulfillment software can intelligently route orders to ship from warehouse locations based on inclement weather. If a snowstorm is expected to cause carrier processing delays along one shipping and delivery route, optimize it to ship from a different location less likely to be impacted by the weather.

6. Prepare for Peak Seasons

Add buffer days to your promised delivery windows during the holiday rush to account for unavoidable circumstances that can cause shipment exceptions, and coordinate capacity with your warehouse or fulfillment center. Build in overflow plans for volume spikes and inclement weather.

7. Simplify Customs with DDP

For international ecommerce, DDP shipping helps eliminate many customs-related shipment delays. Ensure duties, taxes, and documentation are handled upfront. If not, you risk regulatory issues and angry customers.

Communicating with Clients

When shipment exceptions or delivery delays arise, clear and proactive communication with clients is essential. Keeping customers in the loop with timely tracking updates, email notifications, or even a quick phone call can make all the difference in how they perceive your service. If a package is delayed due to inclement weather or another unexpected event, reaching out to provide further information and an updated delivery estimate shows that you’re on top of the situation. Offering solutions, like reshipping the order or issuing a refund, demonstrates a commitment to stellar customer service. If you need more details about a delayed package, don’t hesitate to contact FedEx/UPS/USPS customer service (or the relevant carrier) for assistance. By maintaining open lines of communication and addressing shipment delays head-on, you build trust and reassure clients that their satisfaction is your top priority, even when the shipping process hits a bump in the road.

What to Do When an Exception Happens

When a delivery exception hits, your goal is to respond faster than the customer can panic.

1. Check tracking details: Is it address, weather, customs?

2. Contact FedEx/UPS/USPS customer service (or the relevant carrier) immediately if it’s fixable.

3. Communicate clearly: Tell the customer what’s going on and what you’re doing about it.

4. Reship or refund as needed: Don’t wait for them to ask.

5. Track repeat offenders: Are certain addresses or products triggering exceptions more often?

Many shipment exceptions can be resolved quickly by taking prompt action, and in such cases, proactive communication can turn a negative into a positive experience.

This is how you turn a potentially negative experience into an opportunity for great service.

Connect the Dots: Why It All Matters

Here’s the real cost of ignoring shipping exceptions: it makes your brand feel unreliable. Even if you ship fast and fulfill flawlessly, the final destination (the customer’s doorstep) is where brand perception is cemented. Successful package delivery is the ultimate goal, and even when exceptions occur, the focus should remain on finding ways to deliver the package to the customer.

I’ve seen merchants blow through acquisition costs, only to lose customers over a weather delay they didn’t explain. Or spend a fortune on packaging, only to print the wrong ZIP code.

The best brands treat delivery as an extension of their product. They obsess over how exceptions are avoided, managed, and communicated. That’s the difference between one-time buyers and loyal customers.

At Cahoot, we built proactive exception handling directly into our fulfillment software, including our Amazon Buy Shipping integration. Not because it’s flashy, but because it works. And because ecommerce businesses shouldn’t lose money, sleep, or reputation over something as preventable as a delivery status glitch.

Frequently Asked Questions

What is a shipment exception?

A shipment exception occurs when a package encounters an unexpected issue during transit, like bad weather, an incorrect address, or customs delays, that interrupts the normal delivery process and may delay arrival.

How long do FedEx delivery exceptions last?

It depends on the cause. Weather-related exceptions might resolve in 1–2 days. Address errors can take 24–72 hours to correct. Customs delays could stretch over a week, especially if documentation is missing.

Are delivery exceptions preventable?

Many are. You can reduce exceptions by verifying shipping addresses, using multiple carriers, labeling properly, and communicating delays. While you can’t prevent natural disasters or severe weather, you can plan around them.

What should I do when a delivery exception happens?

Check the tracking number, contact the carrier if it’s address-related, and notify the customer quickly. Offer alternatives like reshipping or refunds if the delay is significant. Always communicate early to avoid frustration.

Do exceptions mean my package is lost?

Not necessarily. Most shipment exceptions are temporary and resolve within a few days. But if your tracking status hasn’t updated for more than a week, it’s worth contacting the carrier to escalate.

20 Delivery Exceptions and How to Address Them

• Category: Uncategorized
• Tag: Shipping and Logistics