In a rapidly expanding ecommerce industry, successful businesses must distinguish themselves from the competition. Of course, with so many online stores out there, attracting the attention of consumers is easier said than done. Fortunately, you have access to countless strategies and tools to not only attract customers but also retain them.
One of these tools is package protection. Read on to learn what package protection is, how it improves your purchase experience and post-purchase experience, and how to add package protection to your ecommerce store.
What Is Package Protection?
Package protection, also known as shipping protection, is a form of shipping insurance that protects customer orders from loss, damage, and theft during shipping. During checkout, customers have the option to add package protection to their order for a small fee. If they decide to add package protection and end up encountering a shipping issue, they simply file a claim with the insurance provider for a replacement or reimbursement.
In addition to providing peace of mind for customers, package protection helps your business’s bottom line by fostering customer trust and loyalty, increasing conversion rates, and minimizing loss due to shipping mishaps.
This service is more relevant than ever. When ecommerce started to explode, shipping issues became much more common—one organization saw a 107% increase in lost package claims and a 78% increase in damage claims.
As package loss, theft, and damage numbers continue to increase, you can take action to protect your customers and your business.
How Does Package Protection Work?
Package protection works by allowing shoppers to insure their purchases for a small fee, which is based on their order value. If a customer who has opted in encounters a shipping issue, they can file a claim through the protection provider’s website, providing necessary documentation like photos or order details. Once the claim is reviewed and approved, the customer receives a replacement item or refund.
To add package protection to your store, simply choose a solution that integrates with your ecommerce platform. For example, Norton Shopping Guarantee is available for both Shopify and WooCommerce stores.
These solutions are generally fast and easy to integrate. Some of them, including Norton Shopping Guarantee, are completely free for merchants to download and use.
Once you’ve chosen and launched your package protection solution, customers will have the option to add insurance during checkout. It’s as simple as that!
This offering enhances customer trust and satisfaction by providing peace of mind and a hassle-free claims process; at the same time, it reduces the financial burden and logistical challenges for your business by outsourcing issue resolution to a third party.
How Package Protection Impacts the Customer Experience
Consumers face a variety of risks when shopping online, and many of them have had bad experiences. Packages get damaged by the carrier, lost in transit, or stolen from the doorstep. Merchants send the wrong product and refuse to offer a refund. Scammers take people’s money (or personal information) and never ship anything.
You know your store is reliable and trustworthy—but your customers don’t. Adding package protection to your online store helps them feel more confident when making a purchase. It relieves the anxiety and worries they might feel, leading to a better experience with your business.
Package protection improves the customer experience in two important ways: boosting trust and giving shoppers peace of mind.
- Trust. When customers see that a brand offers package protection, they feel more comfortable making a purchase. They know they don’t need to worry that the business will ghost them if they encounter a shipping issue.
- Peace of mind. Package protection reduces the risk of online shopping, ensuring that customers won't suffer financial loss or inconvenience if their package is lost, damaged, or stolen by porch pirates.
In short, package protection enhances both the pre-purchase experience—by minimizing shopper anxiety and indecision—and the post-purchase experience, by reassuring customers that they won’t lose money if their product disappears or gets damaged.
But these aren’t the only benefits of shipping protection. Your brand directly benefits in many other ways, including greater revenue and fewer financial losses.
In the next section, we’ll explore five reasons why adding package protection to your website is a no-brainer.
Why Add Package Protection to Your Ecommerce Store? 5 Ways It Can Increase Profits
Package protection isn’t required, but many businesses choose to offer it. Here’s why.
1. Increase Cart Conversions and Decrease Cart Abandonment
Customers frequently visit online stores without adding anything to their cart. Other times, they add items to their cart but don’t follow through on the purchase. Why?
Often, shoppers hesitate to click “Check out” because they’re skeptical of the store’s shipping or returns policy or not sure their order will be secure.
Package protection can increase cart conversions and decrease cart abandonment by enhancing the perceived value and security of a purchase. When customers are given the option to add package protection during checkout, they feel more confident that their order will be safeguarded from potential shipping issues like loss, theft, or damage.
This added assurance can be a decisive factor for those who might otherwise hesitate to make a purchase. By addressing concerns early in the buying process, your businesses will encourage more customers to complete their transactions.
2. Gain More Repeat Customers
As we’ve established, people feel more confident shopping online when they know their purchases are protected against loss, theft, or damage. This reduces anxiety about potential shipping issues and shows that the store cares about customer satisfaction and security.
But package protection doesn’t just help you convert first-time customers. It also helps you retain customers and build a loyal customer base.
A shipping issue is one of the most offputting experiences a customer can have. If a product arrives damaged or never shows up, the odds are high that the customer will never buy from your store again. In fact, 85% of online shoppers say they won’t order from an online retailer again after a bad delivery experience.
However, customer service goes a long way toward smoothing things over. After product price and quality, experience is the most important factor in consumers’ purchasing decisions.
Package protection services are designed to create a great customer experience. Every issue is handled by professional representatives who communicate promptly with customers, walking them through the claims process and providing compensation.
With a smooth and efficient claims process, customers are more likely to have positive experiences, even when problems arise. These satisfied customers will likely return for future purchases and recommend the brand to others.
3. Save Money on Replacements and Refunds
Paying for replacements or refunds out of pocket gets expensive quickly. With package protection, you won’t have to worry about that anymore. Package protection allows businesses to outsource the financial and logistical responsibilities associated with shipping issues to third-party providers.
When customers opt for package protection, any claims for lost, stolen, or damaged items are handled and funded by the insurance provider rather than your business. This means that you don’t have to bear the cost of replacing or refunding orders due to shipping problems, which reduces the direct financial impact on the business. And because customers pay the insurance fee, your business can access these benefits at no cost.
4. Reduce Chargebacks and Negative Reviews
When customers are frustrated with an ecommerce store, they don’t always know what to do. If you don’t have a clear strategy for handling issues, these customers might not know how to approach you to resolve problems. Instead, they decide to file a chargeback or leave a negative review online (66% of people say they’ll leave a bad review if a package is lost or damaged).
The result? High chargeback fees from banks and a tarnished reputation.
Shipping protection can significantly reduce chargebacks and negative reviews by providing a clear and efficient mechanism for handling shipping issues. When customers have package protection, they have a straightforward process to file claims for lost, stolen, or damaged packages. With their problems resolved, they don’t feel the need to resort to chargebacks to recover their money. Additionally, the positive experience of having issues quickly and effectively resolved leads to fewer negative reviews.
5. Streamline Processes
We’ve explained how package protection solutions save you money by minimizing financial losses from lost, damaged, or stolen goods. But package protection also helps cut costs in a less obvious way.
You’ve probably heard the phrase, “Time is money.” That’s especially true when running an ecommerce business. By saving your customer service team time, package protection saves your business money. Without the heavy workload that comes with claims management, your team can focus on other activities that bring more value to the business.
Package protection also streamlines things from the customer’s point of view. Once a shopper adds package protection to their order, they are covered from loss, damage, or theft. When things don’t go as planned, filing a claim is as easy as filling out a short, simple form.
The claims approval process is fast and painless. Before they know it, your customer will have a new package shipped and on its way.
Keep Your Packages Safe With Norton Shopping Guarantee
As an online merchant, shipping plays a vital role in the relationship you have with your customers. When you sell online, you’re missing out on the direct contact your customers could have with brick-and-mortar competitors. But when someone’s package is delivered, that is your direct contact. It’s your first physical impression, and in the world of business, we all know how important it is to get that right.
If you’re looking for a way to enhance your delivery experience, consider adding package protection to your store with Norton Shopping Guarantee with Package Protection by EasyPost. In addition to building buyer trust with affordable, comprehensive shipping insurance, Norton Shopping Guarantee offers other benefits for buyers, including a $1,000 Purchase Guarantee, $100 Lowest Price Guarantee, and Identity Theft Protection.
Get in touch today to find out more and decide if package protection is the next step in growing your business.
