Preventing “Missing or Damaged” Claims: How to Protect Your Handmade Business

Proven Strategies for Documenting Orders, Managing Repeat Offenders, and Staying Insured

There’s no bigger buzzkill than hearing a customer claim their package arrived incomplete—or worse, completely destroyed—when you know you packed it with care. According to industry reports, nearly 30% of online businesses encounter at least one “damaged item” or “missing product” dispute per month. It’s enough to make you question your processes, your packaging, and sometimes even your trust in human nature.

But don’t worry. Whether it’s a legitimate claim or a fishy scenario, there are strategies to protect your business (and your sanity). I’ve learned a few tricks along the way—some the hard way—so let me share how I keep these claims from becoming a nightmare.

1. Video Documentation at the Packing Station

If you’re not already doing this, consider setting up a simple video system at your packing station. Each time an order is fulfilled, let the camera roll. This footage becomes a digital witness, ready to show the exact contents of every shipped box.

• Why it Works: When a customer says, “I never received that extra item,” you can quickly review the footage. Nine times out of ten, you’ll see that item was indeed included.

• Pro Tip: Keep your camera angles clear enough to view the product, packaging material, and shipping label. This detail can be a lifesaver if you ever need to file an insurance claim or dispute a chargeback.

  
  

2. Timestamp Your Orders

Pair your video strategy with a timestamp system in your shipping software. For example, if you’re using ShipStation, add a note or internal tag with the exact time the order was packed.

• Easy Reference: If a customer questions you days or even weeks later, the timestamp helps you pinpoint the exact moment and footage of their order.

• Accountability: A clear paper trail can calm customer doubts, especially if they suspect a delay or a miscommunication.

  
  

3. Handling “Repeat Offender” Claims

Sometimes, you’ll run into customers who repeatedly report damaged items. Here’s how to navigate that sticky situation:

1. Request Photos: Always ask for pictures of both the damaged product and the box. A legitimate claim usually includes images that clearly show what happened during shipping.

2. Offer Replacements or Refunds: Show you care by offering to make things right—at least the first time. Most honest customers appreciate this gesture.

3. Monitor Frequency: If the same client claims damage two or three times in a row without solid evidence, it’s okay to be cautious. In fact, it might be time to pause future orders or politely decline business. Your resources are precious, and so is your peace of mind.

   
   

Real-World Example: I had a customer who twice reported broken items but never showed photos of the box. The shipping team had taken extra precautions with peanuts, bubble wrap—everything. Each time I asked for a photo of the packaging, they went silent. Eventually, they admitted their coworker had unpacked with no pictures taken. I gave them the benefit of the doubt this round, but a third time would be a clear red flag.

4. Leverage Shipping Insurance

When the damage is legit, shipping insurance can save your bottom line. It covers the cost of lost or broken goods during transit—provided you have solid documentation.

• Claim Process: Typically, you’ll need proof of your item’s value (receipts) and evidence of damage (photos, video, etc.).

• Tie it All Together: This is where your packing station footage shines. Showing you shipped items safely and on time is invaluable when verifying claims with carriers.

  
  

5. Keep Clear, Calm Communication

While it’s tempting to be defensive, especially when you suspect foul play, remain polite and professional. You want to gather facts. Offer a quick resolution if it’s reasonable; if not, stand by your policies—particularly when you have the video and timestamp proof to back you up.

Real-World Example: I’ve been in almost the exact same boat. Out of about 2550 orders on Faire, only five arrived “damaged.” Two of those were from the same buyer—no box photos, just shots of the allegedly broken items. It raised enough red flags that, after the second time, I contacted Faire and asked them to block the buyer entirely. It’s not a step I took lightly, but sometimes you’ve gotta draw the line and protect your business from customers who appear to be abusing your goodwill.

Protecting your handmade business means safeguarding every step of the order process. Detailed video recordings, precise timestamps, and solid shipping insurance serve as a strong shield against both honest mistakes and potential scams. If a customer repeatedly files dubious claims, you have every right to be cautious. It’s your business, after all, and you deserve to operate with confidence.

A little tech setup can save you countless headaches down the line. Document everything, maintain transparency, and don’t be afraid to enforce boundaries when needed. Yes, you might lose a few questionable customers along the way—but you’ll sleep much better knowing your processes are airtight.