Is Shipping Insurance Worth It?
If you shop online, chances are good that you’ve experienced some kind of “last mile” shipping issue – a damaged, lost or stolen package—with an order; according to a Stella Service study, up to 11% of major carrier packages are damaged in transit, and most online sellers see a damaged package rate of more than 5% on the orders they ship. Another study by the Interactive Media and Retail Group found that the cost of failed deliveries accounted for over 1% of the total value of online orders in the UK.
If you sell online, you certainly care about the experience your customers have interacting with your brand—and how it manifests itself in your reputation, ratings and reviews, and repeat order metrics—which means you care a lot about ensuring your products make it into the hands of your customers. And that means you care about the cost of paying to replace lost, stolen or damaged items—whether out of your own pocket or through an insurance claim.
What commonly referred to as “shipping insurance” (also called “Declared Value for Carriage” by some carriers) can offer both peace of mind and protection for you and your customers.
This article is an excerpt from The eCommerce Seller’s Guide to Shipping Insurance