#ai-dtc
Thread
Curious how you all handle situations where customers enter an incorrect shipping address.
There are two scenarios, one is the product is returned to us as undeliverable. The other is the product is delivered to the correct address as the customer entered, but it doesn't reach the customer since the address was wrong.
For the first scenario, we normally invoice the customer for the cost of shipping and just resend the package.
For the second, I'm not quite sure the best route. I don't feel like we should have to bear the full burden of losing the first product, sending another, and paying shipping.
I'd appreciate any input!
This is always tough. The brand building founder in me says, send the product and take the hit. The economics focused founder in me says yes, they should assume the cost but then you run the risk of them cancelling the entire order, right? Not sure AOV of your product or average shipping costs but that and the repeat order rates all come into play. On another note, when we were 100% UPS exclusive, I do believe this was covered soma be something to consider looking at having a single shipper and worker with an account manager
@Stewart Thanks for the input!
My product is a consumable so has frequent reorders so I usually just cover the cost regardless. US consumers are super entitled (including myself) so probably better to just eat it. But definitely depends on your business.
Ours has some LTV but we are not selling a consumable. AOV about $80.