How to Claim for Lost or Damaged UPS Shipments

UPS, the US courier giant, handles 22 million+ packages per day and delivers over 5 billion parcels annually - but its presence in the UK is much smaller.

UPS holds just 8% of the UK parcel market and is the preferred courier service of only 3% of UK customers, while customer satisfaction hovers around the 51% mark according to Ofcom.

UPS also attracted the 4th highest number of compensation claims on the Claimit platform in 2024 for losses, damages and delays.

If your e-commerce business uses UPS, here's how you can automate a compensation claim with UPS in a few clicks.

UPS delivery performance: Spotlight

• Founded in Seattle in 1907 and headquartered in Georgia (US), the United Postal Service is one of the world's largest couriers.
• UPS delivers packages for 1.6 million shipping customers and delivers to 10.1 million delivery customers in over 200 countries - every business day.
• B2C accounts for 64% of UPS deliveries.
• In the UK, UPS has operated since 1988 and currently has 50 operating facilities, 2,000+ vehicles and 3,000+ UPS pick-up points.
• UPS attracted 5% of all claims on the Claimit platform in 2024.

Making a claim for a lost or damaged UPS shipment

1. Identify lost or damaged UPS shipment

Instead of waiting for the end-customer to contact your customer support team, Claimit's automated claims platform uses AI to spot delivery issues in advance. The system scans for 50+ potential shipping errors, flags potential issues in the system and sends alerts to your customer support team.

2. Check claim eligibility

Each courier has different Ts & Cs. As a global carrier, UPS' terms and conditions even change per country. For instance, UPS in the UK will not accept claims for shipments containing items that are prohibited or require 'special handling,' such as:

• High-value items (jewellery, art etc)
• Perishable goods
• Plants

With manual claim processing, you need to review the UPS liability, your obligations and the claims deadlines before making a claim. With Claimit, you simply choose UPS from the list of couriers on the platform and the system instantly cross references your product with the courier's claims requirements.

3. File claim with all key documentation

To file a UPS claim online, you need to include specific details and supporting documents. This includes:

• Tracking number
• Contents description per product type - i.e. clothing or electronics
  • Clothing - Old Navy men's classic crew neck jumper, hunter green, size M
  • Electronics - Lenovo IdeaPad 330 15.6" Laptop, Windows 10, Intel Core i3-8130U Dual-Core Processor, 4 GB RAM, 1 TB Hard Drive – Platinum Grey
• Proof of value (i.e. invoice/receipt)
• Photos to prove damage:
  • Damaged item and packaging inside the box
  • Shipping label with tracking number
  • Outside of the package (showing any damage)
• Dimensions of the box (i.e. parcel height, length and width)

Confusing, right? The Claimit platform simplifies document gathering by highlighting which evidence is required and allowing you to drag and drop or upload files directly into the claims portal. You then simply click 'claim' and your claim is sent.

4. Track claim status

UPS aims to give you an outcome within 8-10 business days. You can track the claim by logging into your UPS client account and manually checking its status - which can be difficult if you have lots of claims to stay on top of.

Claimit gives you full visibility of each claim's status via a single dashboard and alerts you to changes in claim's status, so you can easily monitor claim progress until resolution.

5. Receive payout

From June 2025, UPS will stop sending reimbursements and refunds via cheque and exclusively send payments via bank transfer. This usually takes place within 3 days of claims resolution.

Claimit not only generates payouts 40% quicker than manual claims processes, but reimburses you instantly with digital credits, so you don't have to wait. What's more, by ensuring you meet all of UPS's claims requirements, we achieved a 94% success rate for UPS claims in 2024.

Do I need Claimit for UPS claims?

If you're an ecommerce business that uses UPS to deliver your products, you could make a significant difference to your bottom line by using Claimit. Particularly, if you:

• Send more than 500 UPS shipments per month
• Currently use a manual process to make claims.
• Have a low claims success rate (under 50%).

Book a demo for more info.