ABC Gadgets has really begun to take off over the last few years. They sell custom made widgets and are proud of the work they’ve accomplished. Their customers really love the brand and trust them to deliver excellent quality products. They’ve grown from selling several hundred products a month to several thousand.
Unfortunately, a few of their product deliveries have recently fallen victim to porch pirates, and the owner is beside herself. Some of their customers want refunds, which shocked the owner—she didn’t realize customers would consider ABC Gadgets responsible for something so out of the company’s control. Their profit margins aren’t big enough to absorb the cost easily, but they don’t want to lose customer confidence, and they don’t want their customers to suffer either.
It seems like a no-win situation.
Debunking Common Misconceptions in the Age of Ecommerce
As ecommerce continues to grow, so does the problem of porch piracy. In 2022 alone, more than 260 million packages were stolen in the U.S., costing a staggering $19.5 billion in losses. With an average value of $112.30 per stolen package and 14% of U.S. citizens affected, it's an issue that can no longer be ignored or downplayed. Yet, both merchants and consumers continue to hold onto persistent myths about package protection and porch piracy. Let's debunk these myths to set the record straight.
Myth #1: “My customers already assume we’re protecting them.”
The Reality Check: Consumers Want Options
Many online retailers assume that customers believe their packages will automatically be insured or protected. However, consumers are savvy, and a recent study shows that 65% of consumers are actually interested in the option to add shipping insurance for online orders. By offering this feature, merchants can shift the responsibility of covering the cost when packages are lost or stolen, which is a win-win situation for both parties.
Myth #2: “Everyone trusts us. We’re a big brand.”
The Trust Gap: Perception Vs. Reality
Big brands often think their reputation alone is enough to instill trust in consumers. But the facts tell a different story: 87% of merchants believe consumers automatically trust them, whereas only 30% of consumers actually do. This 57-point trust gap highlights the importance of transparent communication and offering tangible safety measures, such as package tracking or insurance options, to build and maintain customer trust.
Myth #3: “Our customer can just call the credit card company to fix the problem.”
The Credit Card Caveat: Secondary Coverage Isn't Enough
Some merchants believe that if a package is stolen, the customer can simply reach out to their credit card company to resolve the issue. While it's true that many credit card companies offer some level of protection against theft, this is usually secondary coverage. This means that consumers are required to exhaust all other avenues of redress first, like filing a police report or a claim with the shipping company, before the credit card company steps in. This adds layers of complexity and stress for the consumer.
The Stark Reality: Porch Piracy Statistics
- Packages stolen in 2022: 260 million
- Lost to package theft annually: $19.5 billion
- Average value of stolen packages: $112.30
- U.S. citizens affected in 2022: 14%
The Solution
In the age of booming ecommerce, the myths surrounding package protection and porch piracy can be damaging for both merchants and consumers. Debunking these myths is the first step toward creating a safer and more reliable online shopping experience. It’s time for merchants to listen to what consumers are actually saying, bridge the trust gap, and offer more comprehensive options for package protection.
Let’s check in with our hypothetical store, ABC Gadgets. A large portion of their sales move through their Shopify store. The owner did a little digging to see if she could get some help with their stolen packages problem. She found Norton Shopping Guarantee with Package Protection by EasyPost. It was free for her to add, giving her customers the option to add package protection to their shopping cart. She was surprised—and relieved—to find that more than half of her customers have added it.
She turned a no-win situation into a win-win. Her customers’ purchases are now protected, and her profit margins are untouched. She’s thrilled with the solution, because in the end, a satisfied customer is a returning customer.
Make informed decisions and protect both your business and your customers from the growing scourge of porch piracy by offering package protection today.
