UPS lost my package. What do I do?

What sort of service-level/lost package agreements does Amazon have with services like UPS?

• I ordered about $400 worth of networking equipment from Amazon yesterday. I got a paper delivery notice today that it had been dropped off at my apartment complex’s office, but I went to pick it up, and it was nowhere to be found (it was signed for, but the person signing did not verify that all the packages were actually received). I called UPS, and they were sympathetic, but told me Amazon wants customers to contact them directly. I contacted Amazon, and they told me they could either refund the order or send a replacement. Who ends up paying for the replacement (Amazon, UPS, or maybe an insurance company), what sort of work goes on to track down the missing package, and what happens if the package eventually turns up? New information: the replacement package was shipping using OnTrac instead of UPS. Does Amazon have a policy of not re-shipping using the same carrier, or blacklisting certain carriers for certain locations, etc.?

• Answer:

  All customers have some agreement with carriers regarding shipment losses and damages - whether explicitly negotiated or not. UPS is a very large carrier with many employees, and has always had issues with some bad employees (there was a video someone posted of one worker who threw boxes around and dropped them). Years ago I had shipments from Apple go missing when they were sent through UPS. Apple finally sent replacements via FedEx. Amazon can not blacklist a carrier like UPS. Amazon, like all UPS customers experiencing loss or damage, would have to file a claim with UPS. In turn, UPS would probably look to their insurer or internal funds to cover losses. Standard terms with some carriers (I know FedEx has a $100 claim limit per package unless you pay for additional coverage) have some limit. A major customer like Amazon likely has negotiated some higher coverage for most of their shipments, or at least reduced insurance rates. If a package turns up - UPS may return the package to Amazon and thereby avoid paying for the loss claim. In some cases the package may still be delivered to you if UPS has already paid the claim - but that is unlikely for higher value items. I know Amazon sometimes will issue a refund for low cost items and let you keep it since it would not be worth shipping the item back to them at their cost.