What is Shipping Protection? How It Works, and Do You Really Need It?

What is Shipping Protection? How It Works, and Do You Really Need It?

If you’re a handmade seller, you know the heartache that comes when a beautifully crafted piece you poured your soul into gets lost, damaged, or stolen during shipping. Shipping protection is like a safety net for both you and your customers, ensuring that their precious packages reach them safely. But is it worth it for your handmade business? Let’s dive into what shipping protection is, how it works, and whether you should consider adding it to your checkout process.

What is Shipping Protection?

Shipping protection is an optional service that allows customers to insure their packages against loss, theft, or damage. At checkout, they can add this service for a small fee, ensuring that if anything happens to their order during transit, it’s covered. Many sellers use third-party shipping insurance programs like Route, but we found an alternative that could better serve our business—and our customers.

My Experience: We used Route for years, thinking it was the best option for our handmade brands. However, after a deep dive into the numbers, I discovered that our customers were paying thousands of dollars for the service, with a shockingly low claim rate—less than half a percent. Realizing we were leaving big money on the table, we decided to take control and brought our shipping insurance in-house. And let me tell you—we couldn't be happier!

How Does Shipping Protection Work?

Shipping protection can work in two main ways:

1. Third-Party Providers: With services like Route, customers pay a small fee at checkout to protect their packages. If something goes wrong, they file a claim directly with Route. While convenient, you may lose out on potential revenue and have no control over the claims process.
   

2. In-House Shipping Protection with Guide: Guide Shipping Protection allows you to offer shipping insurance directly through your store, giving you more control over the process. With Guide, customers can add protection with one click at checkout. If an item is lost, damaged, or stolen, Guide automatically replaces it with a repurchase directly from your site—keeping customers happy and your revenue intact.
   

Do You Need Shipping Protection? Here’s What to Consider:

• Your Average Order Value (AOV): If your handmade items are on the higher end, offering shipping protection makes sense. It protects your hard work and gives your customers peace of mind.
  

• Frequency of Lost or Damaged Packages: If shipping mishaps are rare for you, a third-party provider might be overkill. In-house options like Guide let you keep more control and profit.
  

• Customer Experience: Today’s shoppers appreciate knowing they’re covered in case something goes wrong. Shipping protection shows that you care about their experience beyond just making a sale.
  

Benefits of Guide Shipping Protection

1. Checkout Extensibility: Guide integrates seamlessly with your checkout process, providing a smooth customer experience.

2. Premium Insurance Coverage: Protects against damage, theft, chargebacks, and more.

3. Customer-Focused: Guide’s approve-all-claims model ensures happy customers and builds loyalty.

4. Adds New Revenue Stream: Every replacement order is a new sale at full MSRP, helping you recover costs and then some.

5. Easy Install/Uninstall: Optimized for speed and conversion, Guide is safe to add or remove without any hassle.
   

Why let third-party providers take all the profits? Keep more in your pocket and control your brand experience with in-house shipping protection.

Best Practices for Offering Shipping Protection

1. Clear Communication: Make sure your customers understand the benefits of shipping protection at checkout. A simple pop-up or a small line of text can work wonders.
   

2. Keep It Optional: Don’t automatically add shipping protection to orders. Give customers the choice; it builds trust.
   

3. Monitor Claims and Feedback: Regularly review claims to ensure customers are having a good experience and adjust as needed.
   

Question for You:

Do you offer shipping protection in your handmade shop? If not, what’s holding you back? Share your thoughts and let's discuss how we can make shipping safer and more profitable for everyone.

Offering shipping protection can be a game-changer for handmade sellers. With the right approach, it not only safeguards your beautiful products but also boosts your bottom line. To help you decide whether shipping protection is the right choice for your Shopify store, we've compared some of the top shipping protection apps available, breaking down their unique features, pros, and cons.