With the continued growth of global eCommerce, the issue of failed deliveries (commonly labelled as a delivery exception) is also growing bigger.
Recent insights reveal:
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~8% of domestic first‑time deliveries fail, meaning parcels do not reach the customer on the first delivery attempt.
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Each failed delivery costs retailers an average of about $17.20 AUD in direct and indirect costs such as reshipment, handling, support tickets and processing.
As an e-store owner, you can’t control the entire order fulfilment process since you’d have to rely on your logistics partner and carriers.
However, you can certainly control some of the factors that cause such delivery exceptions.
In this guide you’ll learn:
- What does delivery exception mean
- The factors that cause delivery exceptions
- How delivery disruptions impact your business
- How to deal with them effectively
- Tips to avoid the delivery exceptions
Let’s begin.
What Does Delivery Exception Mean?
A delivery exception means that your shipment is temporarily delayed or held in transit due to emergent circumstances. These conditions include road closures, port congestions, bad weather, vehicle breakdowns, or anything else that could impact the transport.
When such circumstances arise, your deliveries may be impacted and carriers — such as Australia Post, FedEx or DHL — generate a “delivery exception” code in the order tracking system.
This is how customers typically see alerts like “your order has a delivery exception” or “delivery exception FedEx”, depending on the courier.
Sometimes, delivery exceptions can also happen due to occurrences like shipping address errors, incorrect labelling, recipients not being available at the time of delivery, etc.
There are various types of delivery exception scenarios, but not all of them result in delays or missed deliveries.
In some cases, the shipment may still be delivered on time despite such deviations. In these situations, the delivery exception meaning is more about keeping customers informed in case of potential delays — not necessarily an indication of a failed delivery.
Phrases like “your package has a delivery exception” or “FedEx delivery exception due to incorrect address” are examples of how carriers keep the customer in the loop.
What causes a delivery exception?
As discussed above, there could be innumerable reasons that could cause delivery exceptions. But here are some of the most common factors.
Public Holidays
Most carriers don’t operate on public holidays. So your packages usually wouldn’t get delivered during these days, potentially triggering a delivery exception.
For international shipments, it may also happen that a public holiday comes in the destination country while the package is still in transit. Moreover, the deliveries could be further affected due to the accumulated backlogs of such non-working days.
So you need to account for such conditions while committing a delivery date.
Weather Conditions
Reputed carriers plan and organise shipment transportation meticulously to get them delivered on time. However, they still can’t control weather conditions.
So when natural disasters like wildfire, hurricanes, floods, etc. strike, it can disrupt your shipments’ deliveries.
Although customers don’t complain about such delivery exceptions, they can be avoided if there’s inclement weather at the point of origin. When you partner with an expert logistics services provider, they can help you store your inventory at multiple locations. Thus, you can ship packages from a different warehouse.
But if the weather conditions are bad at the destination and surrounding areas, there’s little that can be done.
Delays Due to Customs
This factor mainly applies to international shipments. Sometimes your packages can be held up at customs departments for a long time due to their backlogs or documentation issues.
While you can’t influence customs processing speed, you can reduce the chance of a delivery exception FedEx or similar by ensuring all documentation is complete, legible and accurate before dispatch.
Incorrect or Ruined Labels
Sometimes the packages are undeliverable because of shipping label issues like:
- Incorrect shipping label
- Unclear or worn-out label
- Incomplete address, etc.
When these issues arise, it may result in a delivery exception incorrect address alert, especially with carriers like DHL or USPS. It's quite common for labels to degrade in transit, and once critical information becomes unscannable, the system flags the package with a delivery exception.
Unavailability of Recipient
For the packages that require the recipient’s signature, the absence of the recipient can result in a failed delivery attempt. Additionally, it may also happen that no one else is available at the address to receive the package.
In such cases of failed deliveries, carriers make another delivery attempt on the next day. But they charge the retailers extra for repeated delivery attempts. This is a common cause of the “your order has a delivery exception” message.
To avoid multiple delivery attempts, you can provide your customers with the carrier’s delivery management link (if your shipping carrier has this facility) so that they can choose their preferred time.
Damaged Items
Shipments often get damaged during transportation. In fact, eCommerce packages get dropped 17 times on average while en route, increasing the chances of breakage and a subsequent delivery exception.
If you're shipping fragile items, ensure they’re secured with proper cushioning and marked clearly with "fragile" stickers. This reduces the chance of receiving a delivery exception FedEx or DHL delivery exception notice due to damage.
Lost Items
At times, the packages get lost in transit. This is one of the most extreme types of delivery exception — a nightmare for carriers and eCommerce companies.
Just like damages-in-transit, lost items also put your brand reputation at stake along with financial implications.
Other Mistakes from Carriers
Besides damaging or losing packages, there are other types of shipping mistakes that carriers make occasionally. They include:
- Errors while sorting the shipments in carrier facility
- Loading shipments in the wrong vehicle
- Missing to load shipment before delivery vehicle leaves, etc.
Such errors can also lead to delivery disruptions. So ensure that you partner with established and reputed carriers since they have robust systems and infrastructure in place that mitigates such mistakes.
How do delivery exceptions impact your business?
Although it may seem like minor disruptions, delivery exceptions have deeper implications if they keep happening too frequently.
Here are some implications you certainly don’t want.
They Hurt the Brand Name
Customers know your brand and that’s why they shop from you. So even if the deliveries are disrupted by carriers, ultimately it’s your customers who are at the receiving end. They don’t see whose mistake it is. For them, it’s a brand experience.
They may forgive FedEx delivery exception delays caused by storms or road closures, but errors like incorrect addresses or labelling leave a lasting negative impression.
They Hurt Your Revenue
Delivery reattempts come with a cost. Besides the inconvenience to customers, they also put a dent in your profit margins. In fact, over 50% of online shoppers now expect a refund on shipping costs if their parcel is delayed due to a delivery exception or missed commitment.
Let’s say, you sold a product for $20. The selling price also includes the $3 that you’ll pay for shipping. And your gross profit on this product is $5.
Now due to the delivery exception, you couldn’t fulfil the order by the committed delivery date. So you apologised to the customer and offered a refund of delivery costs. So now your profit is just $2 on this sale.
They Decrease the Number of Recurring Orders
Delivery exceptions also negatively impact customer loyalty and so the recurring orders that come with it.
Research shows that nearly 7 in 10 online shoppers wouldn’t return to a retailer if their parcel arrives more than two days after the promised delivery date.
If delivery exception FedEx or DHL delivery exception issues keep affecting your customers, their trust erodes — and so does the likelihood of them placing repeat orders.
How should you respond to a delivery exception?
Although you should try and do everything in order to fulfil the orders on or before the promised date, as an e-store owner you’d have to rely on carriers and logistics partners. So you can’t nullify the delivery deviations completely.
However, when a delivery exception does occur — whether it's delivery exception FedEx, DHL delivery exception, or another — you can still turn the situation into a positive customer experience by acting proactively.
Let’s see how.
Keep an Eye on the Order Status
First, you need to treat this situation as a priority and be on top of it with constant tracking of the order status. If you’re shipping in high volumes, you can use a tool like ShipStation to get all the tracking information in one place, including alerts like “your package has a delivery exception.”
Also, keep a tight communication with the carrier or third-party logistics (3PL) partner and try to get a grip of the situation. Further, get a realistic revised delivery day or time from them so that you can notify your customers accordingly.
Inform your Customers
As soon as you see a probability of a delivery exception, reach out to your customers and let them know about the situation. Communication is crucial in such cases.
You can use platforms like AfterShip or ClickPost that can track your orders, automatically update the system, and send messages to customers when deliveries get affected.
Then, once you have an update on the revised delivery time, update your systems and inform the customers about it. Note that your customers would value prompt communication especially when the deliveries are disrupted.
Issue Refunds/Resend Package
Next, offer your customers a refund of shipping charges if you’ve already missed the delivery deadline. And in case the products are damaged or lost in transit, resend the products immediately.
While this may impact your short-term margins, it often results in long-term loyalty. If the issue was caused by the carrier — such as what does delivery exception mean for FedEx in cases of misrouting — you may be eligible for reimbursement under their service guarantees.
Follow-Up With the Customer
Empathy goes a long way in building long-lasting relationships with customers. So besides informing and rewarding them, ensure you follow up with them until they receive their order.
Even a post-delivery message or feedback request helps reinforce your commitment. In a world where delivery exceptions are common, showing genuine care sets your brand apart.
How can You Avoid Delivery Exceptions?
As we discussed earlier, as an eCommerce business you can’t control the entire shipping process since you have to rely on the 3PL partners and carriers.
But here are a few areas you can control that can help you avoid the potential delivery exceptions, especially in 2026.
#1 Get the Packaging and Labelling Guidelines Right
All major carriers have specific packaging and labelling requirements.
For instance, FedEx packaging guidelines allow you to ship packages up to 68 kgs with a maximum length of 119 inches and total length and girth not exceeding 165 inches — when you ship with FedEx Express.
To prevent this, use a pre-shipping checklist tailored to your chosen carriers to ensure labels are clear, accurate, and compliant. This helps eliminate common types of delivery exception, such as “label unreadable” or “package returned to facility.”
This would annul the possibility of shipments being held at the carrier facility due to incorrect packaging and labelling.
#2 Use Weather-Proof Labels
It’s a common occurrence to have the deliveries affected due to damaged or worn-out shipping labels. When that happens, carriers can’t read or scan the important details on the label.
You can resolve this issue by using weather-resistant labels with plastic coating. They are more durable and can withstand weather conditions as well as rough handling during transit. This small upgrade can prevent costly issues like your package has a delivery exception due to label damage.
#3 Verify the Accuracy of the Delivery Address
Another way to avoid a failed delivery attempt is to verify the accuracy of the customer’s shipping address. If you’re a low-volume online store, it’s possible to reach out to a customer and verify the address over the phone.
On the other hand, if you’re a high-volume shipper, you can automate this process by installing address verification software in your e-store. It would verify the shipping address in real-time as the shoppers fill in their address details. This drastically reduces delivery exception incorrect address issues.
This way, you can minimise the occurrences of delivery failures due to incorrect addresses.
#4 Prepare Extensively for International Packages
For international shipments, you need to account for factors like:
- Shipping regulations of the destination country
- International shipment packaging guidelines of carriers
- Duty and customs’ documentation requirements
- Calculating the shipping costs for various countries
- Public holidays in destination countries
- Carrier network in specific countries, etc.
Thus, if you proactively prepare for the above factors and other country-specific requirements, your shipments are less likely to get stuck in transit. A missed customs document or an unsupported carrier in the region can easily result in delivery exceptions or held shipments — especially for DHL delivery exception cases involving developing markets.
#5 Allow Customers To Track the Package
If customers know when their orders are arriving, they can stay at the shipping address to receive them. So provide your customers with the tracking resources such as order tracking number, tracking link, etc.
Moreover, you can consider sending them notifications to inform about the delivery time window a day prior or/and same day morning. This way, your customers can also make alternate arrangements in case they’re not available at a given time.
At the same time, you’d be saved from charges of multiple delivery attempts.
#6 Partner with a Competent 3PL Provider
As you grow your eCommerce business, handling all the logistics in-house can consume a lot of your time. And it can deviate your focus from marketing and growing your business to managing deliveries.
And considering that managing logistics is not your core expertise, as the shipment volumes rise, the chances of shipping errors may also increase.
That’s where partnering with an established 3PL services provider can help. With their advanced systems and infrastructure they can help you:
- Minimise the packaging and shipping errors that lead to delivery exceptions
- Store inventory at multiple strategic locations so that you can route your shipments from a different location in case there’s bad weather at origin
- Optimise warehousing and inventory operations
- Optimise your shipping costs by getting corporate rates from carriers
- Manage reverse logistics cost-effectively
Thus, you can focus more on growing your business while your experienced 3PL partner handles your logistics.
#7 Partner with a Reliable Freight Reseller
Let’s say you want to retain your warehousing operations in-house. In this case, you have to be extra careful about all the packaging and shipping errors that can occur at your end.
When you partner with a Freight Reseller such as PACK & SEND, you get access to multiple carriers at heavily discounted rates. With more carrier and service options, you can pick and choose different carriers for different lanes and goods, to ensure you get the best of all carriers and avoid any areas of weakness or high costs on certain lanes.
Wrapping Up: What should you remember about delivery exceptions in 2026?
While delivery exceptions are inevitable, a little proactiveness in identifying their causes and avoiding such errors can help you keep these disruptions to a minimum.
At the same time, if there’s no possibility to avoid delivery deviations, ensure that you contact the carrier, get a grip of the situation, and inform your customers about the realistic revised delivery timeline. Also, note that overpromising in such a situation can damage your brand name.
By following the steps outlined above, you can reduce the risk of common issues like delivery exception incorrect address, label errors, or missed delivery attempts. Most customers will understand disruptions beyond your control — as long as you communicate early and act responsibly.
Frequently Asked Questions (FAQs)
What is a Delivery Exception?
A delivery exception is when your shipment is stuck in transit due to any reason. These reasons can include situations like inclement weather, port congestions, incorrect shipping address, damaged shipping label, and many more.
As a result, your deliveries may get impacted and carriers generate a to“delivery exception” code in the order tracking system.
What does delivery exception mean?
A delivery exception means your package is delayed or held due to unexpected issues like weather, incorrect address, or a missed delivery attempt.
Is a Delivery Exception bad?
If the delivery exceptions happen due to errors that you or your carrier could’ve avoided, it’s certainly bad. The customers usually get disappointed with delivery disruptions due to such errors.
At the same time, if it happens because of situations that are beyond your or carrier’s control such as weather conditions, road closures, pandemic, etc. then there’s hardly anything that can be done. And customers would be more accommodating in these cases.
How long does delivery exception take?
How long it can take depends on the cause of the delivery exception. Sometimes, it may get resolved quickly and may not even impact the delivery time. And in case, there’s a serious situation, it could also take a few days.
Why do I keep getting delivery exceptions?
As discussed earlier, delivery exceptions can arise due to multiple reasons like weather conditions, delivery vehicle breakdown, carrier mistakes, etc.
How can you avoid delivery exceptions?
You can minimise delivery exceptions by:
- Following the packaging and labeling guidelines
- Using weather-proof shipping labels
- Verifying the accuracy of the shipping address
- Preparing extensively for international shipments
- Providing customers with accurate order tracking information
- Partnering with a competent 3PL service provider
- Partnering with reliable Freight resellers
What does delivery exception mean for FedEx?
A FedEx delivery exception indicates that your shipment was delayed in transit. Common reasons include bad weather, address errors, or the recipient being unavailable.
How do I fix a FedEx delivery exception?
Check your tracking info and contact FedEx support. If it’s an address issue, they may allow corrections. If the package is held, rescheduling delivery may resolve it.
What is a delivery exception USPS?
A USPS delivery exception means your package encountered an issue, such as a blocked mailbox, weather disruption, or bad address, delaying final delivery.
How do I fix a USPS delivery exception?
Log in to USPS tracking to view details, then contact USPS directly. If it’s an address or access issue, you may be able to schedule redelivery or pick it up.