Package Damaged in Transit: What to Do (Seller's Guide 2026)
Updated July 2026. Rates and policies verified against carrier-published sources; see references at the end.
If a package you shipped arrives damaged, do three things in order: make it right with the customer immediately (replacement or refund), have them photograph the item and all packaging before anything is thrown away, and file a claim with the carrier. USPS damage claims must be filed within 60 days of the mailing date; UPS asks you to report damage promptly — no later than 60 days after delivery. Priority Mail, Ground Advantage, and UPS shipments each include up to $100 of coverage on qualifying labels, so most damaged-package losses are recoverable.
Step 1: Secure the evidence in the first 24 hours
Claims are won or lost on documentation. As soon as the customer reports damage, ask them for:
- Photos of the damaged item itself, from multiple angles.
- Photos of the inner packaging — cushioning, void fill, whatever surrounded the item.
- Photos of the outer box, including any crushed corners, punctures, or water damage.
- A photo of the shipping label and tracking barcode.
Then tell the customer, in plain words: keep the item, the box, and all packaging until the claim closes. USPS may ask the recipient to present the damaged item and packaging at a Post Office, and UPS may schedule an inspection. If the box goes in the trash, the claim usually goes with it.
Step 2: Take care of the customer before the claim
The claim is between you and the carrier — the customer should never have to wait on it. Ship a replacement or issue a refund as soon as you have the photos, then pursue reimbursement in parallel. A damaged package handled fast is a customer you keep; a customer told to "wait for the claim decision" is a one-star review. A working script: "So sorry this arrived damaged — I'm sending a replacement today. Could you send me a few photos of the item, the box, and the packaging, and hold onto everything for a couple of weeks in case the carrier wants to inspect it?"
How to file a USPS damage claim
- Go to usps.com/help/claims and sign in with a free USPS account.
- Enter the tracking number and select damaged or missing contents. Damage claims can be filed immediately — no waiting period — but no later than 60 days from the mailing date.
- Upload proof of value (your order receipt, invoice, or marketplace sales record) and the damage photos.
- Submit. USPS may follow up asking the recipient to present the item and packaging at a Post Office.
Priority Mail and Ground Advantage include up to $100 of insurance when the label carries a USPS Tracking (IMpb) barcode — which every software-generated label does. If you purchased additional insurance, you can claim up to that amount instead. Straightforward, well-documented claims are typically decided within days to a couple of weeks; payment follows approval. For a field-by-field walkthrough, see our guide to filing a USPS insurance claim.
| Situation | Earliest you can file | Filing deadline |
|---|---|---|
| Damaged or missing contents (any insured service) | Immediately | 60 days from mailing date |
| Lost — Priority Mail Express | 7 days after mailing | 60 days from mailing date |
| Lost — Priority Mail | 15 days after mailing | 60 days from mailing date |
| Lost — USPS Ground Advantage | 15 days after mailing | 60 days from mailing date |
How to file a UPS damage claim
- Start at the UPS claims dashboard (ups.com — file a claim) as the shipper of record.
- Enter the tracking number and select damage as the reason.
- Upload photos plus documentation of value and payment — UPS requires evidence such as the original invoice or a certification of costs.
- Submit and watch the dashboard. UPS may inspect the package, so the recipient must keep the item and all packaging until the claim is resolved.
Every UPS shipment includes $100 of declared-value coverage at no extra charge. Higher coverage must have been purchased when the label was created — you cannot add it after the fact. Report damage as soon as possible: prompt reporting makes it much harder to attribute the damage to anything but transit.
If the claim is denied
The most common denial reasons are insufficient packaging, missing proof of value, and blown deadlines. Fix what you can and appeal — USPS allows appeals of denied claims (see Publication 122 for the current process and timelines), and UPS lets you contest a decision through the claims dashboard with additional documentation. For future shipments over $100 in value, add coverage at label purchase; our shipping insurance guide covers when it is worth it.
Preventing the next damaged package
- Use a rigid box with cushioning on all six sides — carriers deny claims for under-packed items.
- Double-box fragile items, with cushioning between the boxes.
- Watch tracking for stalls and exceptions so you hear about problems before the customer does — our guide to USPS tracking statuses explains what each scan means.
Frequently asked questions
Who files the damage claim — the seller or the buyer?
For USPS, either the sender or the recipient can file, but the seller usually should: you hold the proof of value and the label records. For UPS, the shipper of record files the claim.
Does the customer need to keep the damaged box?
Yes. Both carriers can require the item and packaging for inspection, and discarding them is a common reason claims fail. Ask the customer to hold everything until you confirm the claim is closed.
What if the item was worth more than $100?
Carrier claims pay out only up to the coverage on the label — the included $100 plus any additional insurance you bought at purchase. For higher-value items, add carrier insurance or third-party coverage before shipping; you cannot insure retroactively.
How long does a damage claim take to pay out?
USPS decides straightforward claims within days to a couple of weeks and pays after approval. UPS states it will pay, decline, or make a settlement offer after reviewing documentation, and simple claims commonly resolve within about two weeks. Complex or inspected claims take longer — which is exactly why you should refund the customer first and treat the claim as back-office recovery.
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References
- USPS — File a Domestic Claim — verifies the online filing process, the 60-day deadline, and the 7/15-day waiting periods for lost-package claims (accessed July 2026).
- USPS Insurance & Extra Services — verifies the $100 included insurance on Priority Mail and Ground Advantage and the file-immediately-but-within-60-days rule for damage (accessed July 2026).
- USPS Publication 122 — Domestic Claims: Customer Reference Guide — verifies claim documentation requirements and appeal process (accessed July 2026).
- UPS Tariff/Terms and Conditions of Service — Claims — verifies UPS damage-claim documentation requirements and time limits (accessed July 2026).
