What to Do When a Package Is Lost in Transit (Etsy Seller Guide)

A lost package can happen even when you shipped on time, and handling it well protects your shop and your buyer’s trust. Start by checking the tracking details for the last scan, confirming the shipping address, and asking the buyer to look in safe places like a porch, mailbox, office mailroom, or with neighbors. Keep all communication in Etsy Messages, share any shipping documentation you have, and contact the shipping carrier promptly to request a trace, missing mail search, or insurance claim if available. If the order qualifies for Etsy Purchase Protection, your next steps and timing matter, and one common mistake is refunding or canceling before you have the right proof in place.

Signs a package is truly lost vs just delayed

Tracking statuses that matter most

Most “lost package” situations start as simple delays. Focus on the last scan and whether the package is still getting movement.

A package is usually delayed (not lost) when tracking shows updates like “In Transit,” “Arriving Late,” “Departed facility,” or “Processed through facility.” USPS even uses “In-Transit, Arriving On Time” vs “In-Transit, Arriving Late” messaging to signal a delay rather than a disappearance.

It’s more likely to be truly lost when there have been no tracking updates for an unusually long stretch for that service level, or when the tracking history loops (repeated facility scans, repeated “Arrived at hub” without progress) and the carrier can’t locate it after a trace.

Also treat “Delivered” as its own category. Many “delivered but not received” cases are misdeliveries, mailbox theft, or package placement issues, which need a different set of steps than a package that stopped moving mid-route.

Typical domestic vs international delay windows

For domestic shipments, short delays are common during weather events, peak seasons, and regional backlogs. If tracking has recent scans, it’s usually best to give it a little time before escalating.

For international shipments, longer quiet periods are normal, especially around export processing, customs, and handoffs to the destination country’s postal network. A lack of scans for several days can be normal, but a lack of scans for weeks is when you start treating it as potentially lost and begin formal carrier steps.

Address issues vs carrier delays

Before you assume a carrier problem, confirm the order shipped to the exact address on the Etsy receipt. Etsy’s shipping rules are clear that proof of shipping must show it went to the buyer’s Etsy-provided address, not an address sent later in messages. That matters if you need Etsy’s help later under their shipping policies.

Address-related tracking clues include “Insufficient Address,” “No Such Number,” “Forwarded,” “Return to Sender,” or “Addressee Unknown.” Carrier-delay clues look more like “In Transit,” “Arriving Late,” or stalled scans without any address warning.

If you’re using USPS and the item is truly missing, their Missing Mail process lays out what information you’ll need and when you can submit a request.

Message the buyer about a missing delivery with confidence

First reply script and next steps

Reply fast, stay calm, and keep it practical. Your goal is to (1) confirm what the tracking says, (2) have the buyer check likely delivery spots, and (3) set a clear next check-in time.

First reply script (copy/paste):

“Thanks for reaching out, and I’m sorry this hasn’t shown up yet. I’m going to help you track it down.

Tracking currently shows: [paste latest tracking status + date/time].

Could you please check these quick spots today?

Mailbox/parcel locker
Porch/side door/garage area
Front desk or mailroom (if you’re in an apartment, office, or dorm)
With neighbors (carriers sometimes leave items nearby)

Also, can you confirm the shipping address on the order is: [paste address from the Etsy order]

If it still isn’t located by [tomorrow’s date], I’ll start a package trace with the carrier and update you right away.”

Update message script while investigating

While you’re opening a trace, missing mail request, or claim, keep the buyer informed without overpromising dates you can’t control.

Update script (copy/paste):

“Quick update: I’ve opened a request with [carrier name] to locate the package (tracking: [tracking number]). These searches usually take a few business days.

I’ll message you again by [specific date] with what I hear back. If anything changes on tracking before then, I’ll let you know sooner. Thank you for your patience.”

Tip: If the tracking says “Delivered” but they can’t find it, ask for the delivery location (mailroom, parcel locker, mailbox) and whether anyone else at the address might have received it.

Replacement or refund message script

Only offer the outcome you can actually follow through on. If you plan to wait for the carrier’s response first, say that clearly. If you’re ready to make it right now, say that clearly too.

Replacement script (copy/paste):

“I’m sorry this is happening. If the package isn’t located by [date], I can send a replacement to you. Before I do, please confirm the best shipping address is: [address] Once confirmed, I’ll get the replacement out within [handling time] and send you the new tracking.”

Refund script (copy/paste):

“I’m sorry this order hasn’t arrived. If the package isn’t located by [date], I can issue a full refund. Please confirm you’d like a refund, and I’ll process it right away.”

If the item is custom or one-of-a-kind, say so plainly and present options (wait a bit longer for the trace, remake timeline, or refund). Keeping everything in Etsy Messages protects both sides and reduces misunderstandings later.

Proof of shipment to gather before you take action

Shipping label, receipt, and tracking screenshots

Before you refund, resend, or file anything with Etsy or a carrier, pull together your basic proof of shipping. This is the backbone for a carrier trace, an insurance claim, and any Etsy case review.

Gather:

The shipping label you purchased (PDF or screenshot), showing the ship date and destination.
Your carrier receipt (post office counter receipt, pickup confirmation, or acceptance scan details if you have them).
A tracking screenshot that includes the full scan history and the most recent update (with date/time). If it later changes to “Delivered,” screenshot that too.

If you shipped with Etsy labels or entered tracking on the order, keep a copy of what was entered and when. Etsy may rely on valid tracking or an Etsy-purchased label when reviewing non-delivery issues.

Order details and buyer address confirmation

Open the Etsy order and capture the details you may need to reference quickly:

Order number, purchase date, processing time, ship date, and carrier/service.
Item name/variation (important for replacements).
The shipping address exactly as shown on the Etsy receipt.

This part matters because Etsy’s shipping rules expect sellers to ship to the address provided at checkout, and proof needs to match that address. If a buyer asked to change the address after purchase, keep that message thread handy and decide carefully before shipping anywhere other than the order address.

For the policy language, see Etsy’s Shipping Policy.

Photos and packaging notes for claims

Carriers and insurers often ask for specifics. Even for non-delivery, it helps to document what you sent and how.

Save:

Photos of the packed order (especially for higher-value items).
Package dimensions, weight, and a brief note on packing materials.
Any serial numbers, batch numbers, or unique identifiers.
For international: a copy/photo of the customs form and declared value.

This small paper trail makes it much easier to act fast if the carrier asks for details days or weeks later.

Carrier steps to locate a missing package and start a claim

Missing mail search or package trace

Start with a “where is it right now?” investigation before you jump to refunds. The goal is to get the carrier to actively look for the parcel, not just show you the same tracking page.

A good order of operations:

Confirm the last scan (acceptance, in-transit, out for delivery, delivered).
Contact the carrier with the tracking number and ask for a package trace (UPS/FedEx/DHL) or a missing mail search (USPS).
Ask what they need from you and write it down: case number, next update date, and whether they need the recipient to contact them too.

With USPS, the Missing Mail process is its own step. USPS states the earliest you can submit a Missing Mail search request is 7 days after the mailing date, and the latest is 365 days after.

Insurance claims and required documents

If the carrier confirms loss (or the trace goes nowhere), move to an insurance claim. Claim deadlines vary by carrier and service, so don’t wait.

A few practical reminders that save time:

Use the same shipper name and address that appears on the label.
Keep packaging and contents if there’s any chance the carrier will inspect (common for damage and sometimes for loss investigations).
For UPS, their claim page notes you generally need a tracking number and an invoice/proof of value, and that resolutions are often 8 to 10 business days unless more investigation is required.
For FedEx, their FAQ notes you’ll need the tracking number and supporting documents (like a receipt, photos for damage, or serial numbers), and they may request inspection, so don’t discard packaging.

Common claim fields across carriers

Most carriers ask for the same core details:

Tracking number and ship date
Shipper and recipient info
Package weight/dimensions
Description of contents
Declared value or proof of value (invoice, receipt, order confirmation)
What outcome you’re requesting (reimbursement, replacement cost, shipping charges)
Supporting files (label, receipt, tracking screenshots, photos if relevant)

Timing tips for international shipments

International “dead zones” in tracking often happen at handoffs and customs, so a lack of scans for a while can be normal. Still, don’t let it drift past carrier deadlines.

Two timing habits that help Etsy sellers:

Open the trace sooner than you think you need to, even if you’re still giving it a little time to show up. A trace can run in the background while you keep the buyer updated.
Set a firm follow-up date (for you and the buyer). If there’s no progress by that date, escalate from “trace” to “claim” so you don’t miss the filing window.

Etsy Purchase Protection and when Etsy steps in

Eligibility basics sellers should confirm

Etsy Purchase Protection can cover “never received” (lost in transit) orders, but only when the order meets Etsy’s eligibility rules. Before you assume Etsy will cover it, confirm the basics:

Order total within the coverage limit. Etsy’s standard limit is often up to $250 USD (including shipping and taxes). Etsy has also run time-limited increases, like orders placed November 1 through December 31, 2025 being covered up to $500 USD, based on the order date.
On-time dispatch within your stated processing time.
Valid tracking and/or an Etsy shipping label.
Estimated delivery date shown for the order.
Your shop is in good standing, and the listing photos/descriptions are accurate.

You can review the current criteria and exclusions in Etsy’s official overview of Etsy’s Purchase Protection for sellers.

What to do if the buyer opens a case

If a buyer opens a case, keep everything inside Etsy’s case log and respond quickly if Etsy asks for more info. Etsy generally requires the buyer to message you first (a Help request) and wait at least 48 hours before they can open a case. Once a case is opened and Etsy confirms the order is eligible, Etsy may refund the buyer while you keep your earnings.

Your job is to make it easy to review: provide tracking, ship date, the address you shipped to, and any carrier case number.

When to contact Etsy Support vs the carrier

Contact the carrier first when tracking is stalled, mis-scanned, or shows a likely logistics problem. A carrier trace can often locate a package faster than a case can be decided.

Loop in Etsy (through the case process) when the buyer has a Help request you can’t resolve, the order appears eligible for Purchase Protection, or the buyer escalates to a case. If Etsy requests documentation, answer within their deadline so the order stays reviewable.

Choosing a replacement, refund, or partial refund

When to send a replacement right away

A fast replacement is often the best customer experience when the item is easy to remake, your margins can handle it, and the buyer needs it by a specific date. It’s also a smart move when tracking has clearly stalled (no scans for an unusually long time) but you do not want to wait out a long carrier investigation.

Send a replacement right away when:

You have stock on hand or can remake it quickly.
The original tracking has stopped moving and a carrier trace is already open.
The buyer is responsive and confirms the shipping address on the Etsy order.
The item is time-sensitive (birthday, event, holiday), and the buyer would rather receive it than wait.

If you replace, consider using an upgraded service (and signature confirmation for higher-value orders) so you do not repeat the same problem.

When a full refund is the safest move

A full refund is usually the cleanest option when you cannot replace the item quickly, the buyer no longer needs it, or the order is likely to become a drawn-out dispute.

Refund is often the safest move when:

The item is out of stock, discontinued, or delayed in production.
The buyer is unhappy with delays and wants to close it out.
The order is low value, and the time cost of chasing a claim is higher than the refund.
Tracking shows the package is being returned to you (for address issues), and the buyer prefers to reorder with the corrected address.

If the order appears eligible for Etsy Purchase Protection, avoid reflexively refunding before you understand whether Etsy will cover the “not received” outcome. In many cases, you can keep the buyer supported while you gather proof and follow Etsy’s case flow.

Handling custom and one-of-a-kind items

Custom and one-of-a-kind items need extra clarity, because “replacement” may mean a remake, not the same exact piece.

A practical approach:

Offer the buyer a choice between (1) waiting a bit longer while you run the trace, (2) a remake with an honest timeline, or (3) a refund where appropriate.
If you can remake, confirm details in writing (size, personalization, color) and restate the remake timeline before you start.
If you cannot remake a true one-of-one, be transparent. In many cases, a refund (or a refund once the carrier confirms loss) is the fairest option.

For partial refunds, use them sparingly and only when they match a real, agreed outcome (for example, refunding an upgrade shipping fee when the package arrived late). If the package never arrives, a partial refund usually feels like a compromise that satisfies nobody.

Preventing future lost-in-transit orders without slowing fulfillment

Tracking, signature confirmation, and delivery preferences

The simplest way to prevent “lost in transit” stress is to make every order easy to track and easy to prove. Whenever you can, use a service that includes tracking, and make sure the ship date you mark in Etsy matches the day the package is actually handed to the carrier. Etsy also notes that accurate tracking and ship dates can affect buyer expectations and even eligibility for certain protections. How to Add Tracking and Complete an Order covers the basics.

For higher-risk deliveries (apartments, porch-heavy neighborhoods, high theft areas), consider:

Signature confirmation for expensive orders or time-sensitive gifts.
Hold for pickup options when a buyer asks for it.
Clear “delivery preferences” messaging, like asking buyers to include apartment numbers, access codes (if appropriate), or a business name for office deliveries.

Insurance decisions for higher-value shipments

Insurance is about reducing worst-case outcomes, not “buying peace” on every package. A practical rule is to insure orders that would hurt to replace or refund.

When deciding, look at:

Total value (item + shipping + tax where relevant)
Replaceability (in-stock vs custom)
Destination risk (porch theft, remote areas, international)
Your tolerance for waiting out long claims

If you do insure, save proof of value and packing details so a claim is not a scramble later.

Listing and shop policy language that reduces disputes

Most disputes start with mismatched expectations. Your listings should set simple, buyer-friendly boundaries:

State your processing time and what “ships by” means.
Encourage buyers to double-check their address at checkout.
Note that you will help with carrier searches, but that delivery timelines can vary once the package is with the carrier.
For custom items, explain what happens if a package is lost (remake timeline vs refund options).

Clear language will not stop delays, but it can prevent a delay from turning into a fight.