Delivery Exception: What It Means & How to Handle It

You’ve been tracking a package. It’s marked out for delivery—then suddenly: “Delivery Exception.” No update. No arrival. Just confusion.

These unexpected delays frustrate customers, burden support teams, and quietly hurt your brand.

This guide breaks down what delivery exceptions are, why they happen, and how to prevent them before they cost you.

What is a Delivery Exception?

In shipping and logistics, a delivery exception is when a package runs into an unexpected issue while in transit — something that temporarily prevents it from reaching its destination as planned.

These disruptions can happen for all sorts of reasons: maybe there’s a snowstorm, the address was typed wrong, the recipient wasn’t home, or the label got damaged.

Some are completely out of your control (like natural disasters or customs delays), while others are avoidable with better shipping practices.

Carriers like FedEx, UPS, USPS, and DHL all have systems in place to flag these issues — so instead of just marking the package as “delayed,” they log it as a delivery exception to indicate a hiccup in the normal delivery process.

Basically, it’s a shipping detour — something came up that interrupted the trip, but it doesn’t always mean your package won’t make it.

What are the Common Causes of Delivery Exceptions?

Delivery exceptions happen for a reason — some can be avoided, others can’t. Understanding the most common causes helps reduce delays and keep customers happy.

Here are the key issues that often trigger them.

1. Incorrect or Incomplete Address

This is one of the easiest problems to prevent, yet still one of the most common.

A missing apartment number, a mistyped street name, or an outdated ZIP code can lead to failed delivery attempts, returns, or packages stuck in limbo.

Even if the mistake is small... the result can be a major delay.

2. Severe Weather Conditions

Storms, flooding, snow, or even high winds can throw entire delivery networks off schedule. While you can’t control the weather, you can prepare for it by:

• Setting clear expectations during bad weather seasons
• Monitoring routes and regions prone to disruption

Even if your warehouse is fully operational... the roads may not be.

3. Federal Holidays and Non-Working Days

Holidays cause two main issues: closed carrier networks and overflowing backlogs.

Carriers don’t operate on public holidays, and the surge in volume just before or after often leads to exceptions.

What makes this worse? Many customers don’t realize a holiday is coming — until their order gets delayed.

4. Customs Delays (for International Shipments)

Cross-border shipments come with extra steps — and customs is a common bottleneck. If paperwork is missing, duties aren’t paid, or items get flagged for inspection, your package can sit for days or even weeks.

These delays are often out of your control... but not out of sight for your customer.

5. Damaged, Missing, or Unreadable Labels

A delivery label is your package’s passport.

If it’s torn, smudged, wet, or peeling off, scanners can’t read it — and that can trigger a delivery exception before the package even leaves the sorting center.

In some cases, the package may be rerouted incorrectly... or returned entirely.

6. Recipient Not Available

A common exception that feels harmless — but adds real friction.

If the recipient isn’t home and a signature is required, the package can’t be delivered. Carriers may attempt redelivery or hold the package at a pickup center, but each failed attempt increases delivery costs and customer frustration.

It’s not just about a missed delivery... it’s about a missed moment of trust.

7. Missing Documentation

In the world of logistics, paperwork is just as important as the product.

When customs invoices, commercial receipts, or item declarations are incomplete or missing, your shipment gets flagged immediately — especially for international or B2B deliveries.

The result? Your package sits... waiting, unprocessed, and unmoving.

8. Security or Regulatory Delays

Not all delivery locations are created equal.

Shipping to airports, military bases, government offices, or secure facilities often triggers extra layers of screening — and those checks can create delivery exceptions you didn’t plan for.

Sometimes, it’s not about the package itself... but where it’s going.

9. High Package Volume or Mechanical Issues

During peak times like the holidays or large-scale sales events, carriers experience a surge in volume that strains their entire network.

Sorting errors, staff shortages, and even equipment malfunctions can trigger widespread delays — even if your order was packaged and shipped on time.

This isn’t about doing something wrong... it’s about being prepared when systems are stretched thin.

How Does Delivery Exception Affect Your Business?

Delivery exceptions hurt more than shipping. They affect trust, revenue, and retention.

Here's what can happen if they're not handled well.

Reduced Customer Satisfaction

When customers don’t receive their orders on time — or have no idea what’s going on — frustration grows quickly. Even if the problem came from a carrier or external factor, your brand is the one they blame.

And often... they never get an explanation.

Increased Churn Rate

It only takes one disappointing experience to lose a customer for good. What should have been a long-term buyer relationship turns into a one-time purchase.

Delivery exceptions often lead to buyers walking away quietly.

Damaged Brand Reputation

Customers don’t care who caused the delay.

They only know their package was late. And when that happens, they share their experience in reviews, on social media, and in customer communities.

Even a few negative stories can shape how new buyers see your brand... before they’ve even placed an order.

Revenue Losses

Failed deliveries don’t just disappoint customers — they take money off the table.

Canceled orders, refund requests, and lost upsell chances all add up. Some buyers will leave and never return, meaning you lose not just the sale, but their lifetime value.

Multiply that across dozens or hundreds of shipments and you’re quietly bleeding revenue.

Operational Waste

Delivery exceptions don’t just cause headaches for customers — they slow your team down. Time that should go into growth is spent chasing carriers, filing claims, or repacking orders.

These issues also drive up your cost per order, reduce fulfillment speed, and stretch your resources thin.

Increased Support Burden

Each exception often results in the same question: “Where’s my order?”

Your support team ends up playing detective, digging through tracking info, sending updates manually, and calming frustrated customers.

This reactive work pulls focus from higher-impact tasks and can burn out your staff during peak seasons.

How to Properly Prevent Delivery Exception

Most delivery exceptions can be avoided with the right systems in place. Here’s how to prevent them before they cause problems.

Verify Shipping Addresses at Checkout

Address errors are the low-hanging fruit — they’re easy to fix and expensive to ignore.

A missing unit number, a wrong ZIP code, or a mistyped street name can send packages into limbo. Use automated address verification tools at checkout to catch and correct mistakes in real time.

Use Durable, Clearly Placed Labels

Your shipping label is the only thing connecting your package to its destination. If it's smudged, torn, or stuck on a seam... the carrier’s scanner won’t read it.

Use weather-resistant, smudge-proof labels and place them flat and visible. Make sure barcodes and text are unobstructed — especially if third-party carriers will be handling them.

Double-Check Shipping Documentation for Every Order

Customs delays are often caused by incomplete or inconsistent paperwork. This is especially true for international or B2B shipments, where documentation requirements are stricter.

Always confirm that invoices, item descriptions, declared values, and any customs forms are accurate and included.

Give Customers Real-Time Tracking and Proactive Updates

Uncertainty is worse than delay. Letting customers know where their package is — and when to expect it — helps avoid missed deliveries and frustrated inquiries.

Use tracking pages, automated SMS or email notifications, and real-time event updates (like “out for delivery” or “held at customs”) to keep buyers informed.

Don’t Rely on One Carrier

Every carrier has strengths and weaknesses. One might be better for rural addresses, another for international shipping.

Diversify your carrier mix to gain flexibility — especially during peak seasons or when specific regions face delays.

Implement Warehouse Checks and Automation

Many delivery issues start before the box leaves your facility. Miss-picked items, swapped labels, or forgotten delivery notes are often internal errors.

Use barcode scanning, automated order checks, and fulfillment SOPs to catch mistakes at the packing station. Add final checks for delivery address, item quantity, and any special instructions.

Invest in Protective, Fit-for-Purpose Packaging

If a product gets damaged in transit, it’s often marked as undeliverable or refused by the customer — both of which are logged as exceptions.

Use packaging that fits snugly, cushions the product, and withstands pressure, weather, or stacking. Avoid excessive void space that increases impact damage.

Let Customers Leave Delivery Notes

Sometimes, success depends on context. Giving customers the option to leave instructions like “leave with receptionist” or “ring before arrival” increases the chances of a first-attempt delivery.

Carriers won’t always know where to go unless you tell them.

Get Ahead of Peak Season Pressure

The holidays are a test — not just for sales, but for fulfillment. Package volumes spike, carrier networks slow, and exceptions rise fast.

Start prepping early. Forecast demand, scale your fulfillment team, and communicate extended delivery windows clearly on product pages and checkout.

How Leading Carriers Experience and Handle Delivery Exceptions

Delivery exceptions are handled differently by each carrier. Some are caused by the type of service they offer, regions they operate in, or how they manage volume, documentation, and handoffs.

Below is a breakdown of the most common causes of delivery exceptions per carrier — along with how each one typically handles them.

FedEx

FedEx specializes in time-sensitive shipments and express deliveries, so exceptions often happen due to tight delivery windows, weather-related disruptions, or access-related issues (like gated communities or restricted addresses).

Flat tires and mechanical failures are also cited in FedEx’s service updates.

How They Handle It:

1. Real-Time Tracking Alerts
2. No Delay Guarantee
3. Delivery Reattempts
4. Customer Notifications
5. Support for Exception Resolution

UPS

UPS frequently handles larger or high-value shipments, making exceptions more likely in cases of address mismatches, signature requirements, or damaged labels.

Residential deliveries without access codes or recipient availability are also common triggers.

How They Handle It:

1. Detailed Exception Notices
2. My Choice® for Flexible Delivery
3. Automated Reattempts
4. Label Scan Visibility
5. Driver Delivery Notes

USPS

USPS is known for its high residential volume and nationwide coverage, including remote areas.

Common exceptions stem from holiday backlogs, no secure drop-off location, weather-related access issues, or incomplete addresses on ecommerce packages.

How They Handle It:

1. Exception Tags in Tracking System
2. Redelivery or Pickup Options
3. Holiday & Volume-Related Delays
4. Informed Delivery® Alerts
5. Limited Customer Support on Exceptions

DHL

DHL operates mainly in international logistics, so most exceptions occur during customs clearance, incomplete or missing paperwork, or incorrect international address formats.

Weather and security hold-ups in global hubs can also be a factor.

How They Handle It:

1. “Shipment Exception” Tracking Terminology
2. International Focus, Customs Delays
3. SMS and Email Notifications
4. Clear Explanation in Portal
5. Dedicated International Support

Wrapping Up

Delivery exceptions aren’t just shipping issues — they’re customer experience risks. But with the right strategy and tools, you can prevent most of them before they start.

If you’re serious about reducing delays, gaining real-time visibility, and scaling smarter, Carriyo is built for you. Explore how we help with shipping automation, carrier management, and last-mile intelligence.

Whether you’re in ecommerce, retail, 3PL, enterprise, or small business, we’ve got you covered.

Want more tips? Browse the blog — or reach out if you're ready to streamline your delivery experience.

Here’s to fewer exceptions... and happier customers.

FAQs

Does a delivery exception mean my package is lost?

Not always. A delivery exception means something went wrong during transit — like a delay or failed attempt. Most packages still arrive once the issue is resolved.

Will I be refunded for a delivery exception?

It depends. If the carrier is at fault, you may be eligible. But if it’s due to weather, holidays, or an incorrect address, a refund is unlikely.

Can I prevent delivery exceptions on international shipments?

Yes, with proper prep. Double-check customs documents, item descriptions, and declared values. Most delays come from avoidable paperwork issues.

How long does a delivery exception delay a shipment?

Delays can range from a few hours to several days. It depends on the cause — missed delivery attempts are quick, customs or weather may take longer.

What should I do if a customer contacts me about a delivery exception?

Acknowledge the issue, check the tracking, and share what’s happening. Offer a clear next step — like reshipping, refunding, or updating the delivery info.