Ask any decision-maker what their top metrics are and they’ll mention the return-on-investment (ROI) and customer retention. So if you tell them that you have a tactic that could give ecommerce businesses both at relatively zero cost, then you know they’d have perked ears.

That tactic is real and it is shipping protection.

So if you’re wondering, is shipping protection worth it? Yeah, it is. Let’s get into the nitty gritty of why your ecommerce business needs to offer shipping protection at checkout.

What is Shipping Protection?

Shipping protection is a service that covers customer purchases against package theft, loss, or damage during shipping. If something goes wrong, a third-party provider steps in to handle the cost and logistics of replacing or refunding the lost or damaged packages. (Hi 👋we’re a third-party provider) Customers can easily add this option at checkout for a small fee, which means it doesn’t cut into your profits. Businesses benefit by offering shipping protection by building trust and customer loyalty.

Is Shipping Protection Worth It For Businesses?

Shipping protection doesn’t cost anything to a business, except the API connection and time to set it up. Customers opt into shipping protection, which means they cover the fee themselves. And your business gets a nice proverbial pat on the back from its customers, a boost in sales and conversion rates, and an increase in customer loyalty.

Sounds too good to be true?

It almost is, except that it’s indeed true. Let’s break down exactly how your business will benefit from implementing shipping protection.

Benefits for Your Business

• Shipping protection boosts customer trust and loyalty. When customers know their purchases are safe, they feel more confident buying from you, leading to increased repeat business.
• It reduces the workload for your customer service team. With a third-party provider handling claims for lost, damaged, or stolen packages, your team can focus on more critical tasks.
• It can help increase sales and conversion rates. Customers are more likely to complete their purchases when they know their orders are protected.
• Offering shipping protection also enhances your brand reputation. It shows that you care about your customers’ experience, setting you apart from competitors.
• Cost efficiency is another significant benefit. The cost of shipping protection is typically passed on to the customer, so it doesn’t impact your bottom line.
• It streamlines operations by simplifying the claims process, reducing the complexity and workload associated with shipping issues.

Financial Impact and ROI

Ecommerce brands mostly stay out of this money exchange between the third party provider and your customer, yet it’s the brand that will benefit the most from the exchange.

First, it doesn’t cost your business anything in order for it to exist. Customers opt in at checkout and pay the small fee, which covers the insurance cost without negatively affecting your finances.

More interestingly, it can also increase your average order value (AOV). Customers who feel secure are more likely to add more items, or items of high monetary value, to their cart, leading to higher sales and more revenue.

Customer retention and repeat purchases are where you’ll see long-term benefits. Satisfied customers who have total peace of mind when they are shopping with you are more likely to return, boosting your long-term profitability.

Shipping Protection Implementation Steps Are Simple

Setting up shipping protection with EcoCart is easy and can greatly improve the post purchase experience for your customers. Integrate our shipping protection service with your ecommerce platform using our simple plugin for Shopify or with our API. Work with our team to configure the settings to match your business needs, and run test orders to ensure everything works smoothly.

Training your team is one of the most important considerations for a seamless rollout. Educate your customer service team on handling inquiries and claims, and update your sales and marketing teams about the new service. Provide them with the necessary knowledge and materials to promote it effectively. Regularly review feedback and provide ongoing training to keep everyone up-to-date and ensure smooth operations. 

Common Concerns and Misconceptions

Concern #1: There will be some kind of cost to the business

One of the primary concerns businesses have about implementing shipping protection is the potential cost. That’s easy: the customer covers the cost. 

Shipping protection typically operates on a model where the customer covers the cost through a small fee added at checkout. This means the service doesn’t add a financial burden to your business.

Concern #2: It’s another chore that will require a lot of resources

Another common misconception is that integrating shipping protection into your ecommerce platform is complicated and time-consuming. With EcoCart, the integration process is straightforward and designed to minimize disruption. Our team provides a simple plugin for Shopify users and an easy-to-follow API for other ecommerce platforms. We offer step-by-step guidance and support so that your team gets a seamless setup, allowing you to start offering shipping protection to your customers quickly and efficiently.

Concern #3: It will overwhelm your customer support team

Businesses may worry about the added responsibility of handling customer queries and claims. However, with a third-party provider managing the logistics of claims for lost, damaged, or stolen packages, your customer service team won’t be overwhelmed. We take on the heavy lifting, allowing your team to focus on core activities. Additionally, we provide comprehensive training and resources to ensure your team is well-equipped to handle any questions or concerns that may arise, ensuring a positive customer experience.

Offer Green Shipping Protection With EcoCart

EcoCart offers an innovative shipping protection service that defends your ecommerce business against loss, damage, and theft. By integrating EcoCart’s shipping protection into your checkout process, you ensure peace of mind for your customers and safeguard your bottom line—all at virtually no cost to your business. Combine shipping protection with our climate contribution widget for a sustainability initiative that further boosts customer loyalty.

Our seamless integration works with Shopify as well as custom-built APIs. No matter how your online store is powered, adding EcoCart’s shipping protection is a quick and easy enhancement that delivers significant benefits.

With EcoCart, you can expect to see a boost in purchase intent and customer satisfaction. Our proven solution not only increases customer trust but also reduces the burden on your customer service team by handling claims efficiently. This means fewer customer service calls and lower operational costs. Request a demo today to get started.