E-commerce Shipping: Everything That Is In Control And That Isn't
As an e-commerce merchant, you put in a lot of effort to meticulously curate the stage of the customer journey that is under your control to motivate them to click that “BUY” button, make a successful sale, and bring in profits.
However, at this critical juncture, the reins of control slip from your grasp.
This part of the customer journey that follows: from dispatch to delivery or, in some cases, returns — known as “the post-purchase phase”, is filled with uncertainties and challenges.
To make things worse, these challenges have the potential to hurt your business and undo all your efforts till that point.
Inevitable Post-purchase Issues and Their Impact on Your Business
The post-purchase phase is highly error-prone. Once shipped, your customers’ packages inevitably encounter unforeseen issues such as getting lost and damaged while in transit.
- 32% of customers say that they have not received at least one package they ordered in the past six months because their packages were lost in the mail.
- 7% to 11% of customers’ online orders arrive broken or damaged
- $500K is the estimated loss for e-commerce businesses just from lost and damaged packages in a year
Over time, businesses that consistently face lost and damaged package issues have a competitive disadvantage and face a negative impact when it comes to growth.
So, what is it that you can do to ensure that your bottom line stays protected, each time lost or damaged package incidents happen?
This is where shipping insurance steps in to save the day.
What is Shipping Insurance And Why Is It Important For Your Business?
Shipping insurance is a safety net that is designed to protect e-commerce shipments, particularly against loss and damage.
If an insured parcel gets lost or damaged while being shipped or the contents in the package go missing, then you are entitled to a financial compensation of the package value or the insured value from the insurance service provider.
There are multiple reasons why shipping insurance is necessary for your e-commerce business:
- Peace of mind from the assurance of financial security and thereby having reduced concerns about potential delivery incidents.
- Protection, especially against high-value goods such as jewelry and electronic items going missing and packages getting lost or damaged during transit.
In short, with parcels insured, you will no longer have to worry about losing money due to delivery issues.
Instead, you can both confidently approach customers who’ve faced delivery issues with your repeat purchase efforts, as well as direct the expenses towards growing your business and stay ahead of the competition.
If you’re unaccustomed to shipping insurance — we’ll get right to how you can get started with choosing the right service provider for your needs.
On the other hand, if you’re someone who’s been insuring your packages via old-school techniques, here’s why it may not be the best option for you in the current state of e-commerce and package deliveries.