The Freight Trap: How Shipping Errors Become Chargebacks

Not every deduction comes from pricing or compliance. A big chunk comes from your warehouse—and it starts before the truck even moves.

We call this the freight trap. It’s what happens when routing instructions get missed, labels go wrong, or pallets show up early, late, or split. And then? Your invoice gets dinged.

Fictional example: A functional beverage brand misses a routing update and ships directly to a DC instead of the cross-dock location. The deduction? $9,800—and the retailer won’t budge.

What Goes Wrong:

• Missed retailer routing guides

• Inaccurate case labels or pack counts

• Incomplete advance ship notices (ASNs)

A 2023 Coresight Research study found that 45% of chargebacks from major retailers are due to logistics noncompliance.

How to Avoid the Freight Trap:

• Audit your warehouse and 3PL regularly.

• Use checklists for every shipment.

• Never assume routing rules haven’t changed.

Chargebacks aren’t just accounting issues—they’re operational red flags.

Take Action

Don’t let simple shipping mistakes drain your profits. If chargebacks are becoming a pattern, it’s time to tighten your freight operations. Woodridge can help you identify where things go wrong—and how to stop it before deductions hit your books.

Let’s keep your shipments clean—and your margins intact. Reach out today.