Strategies & Customer Relations Frank Ross on 28 Nov 2006 03:42 pm
Delivery Signatures and Customer Choices
We have several websites that sell physical products via drop shipping arrangements as well as an eBay business. Every once in awhile, we’ll get a note from the customer in the order notes instructing us that “No Signature is Required”, “Delivery Signature not Needed”, or something to that affect.
The other day we got this kind of note on a $300 item. We went ahead and sent it ‘Signature Required’. At some point, it is up to the business to make this choice, not the customer. If the item is lost, stolen, misdelivered, etc. who bears the risk? In some cases, the shipping company will, but usually the risk bearer is the business, not the customer.
If the delivery driver leaves the item on the porch without a signature and it disappears, is the customer going to be willing to eat that loss? On an expensive item, probably not. We have no idea what kind of neighborhood or safety conditions exist where we’re sending it. For example, we don’t know if it’s an enclosed front porch away from the street or a doorway right next to the sidewalk.
On lower cost items, like something that’s worth $20, we might be willing to shoulder the risk, but on more expensive items the signature thing is our choice, not theirs. We use $100 as a cut off. This doesn’t always make for a happy customer, but we have to balance the risk in our business.