Shipping Protection Builds Consumer Trust and Unlocks Another Revenue Stream for Retailers

Retailers are facing growing challenges with lost, stolen, and damaged deliveries. In 2024 alone, 119 million packages were reported missing, and 30% of returns were due to shipping issues.

Historically, retailers often eat the cost of rectifying these delivery issues in favor of providing their customers with a positive brand experience, but this cuts into their bottom line as every approved claim—that results in a refund or re-ship—negatively impacts a retailer’s margin.

Announcing Shipping Protection

To address this, Narvar today announced Shipping Protection¹ in partnership with InsureShield® Shipping Insurance. By allowing shoppers to add package protection at checkout, retailers can offload risk to a third party while giving customers peace of mind knowing their purchases are covered. If an issue arises, they can seamlessly file and manage claims through a branded self-service portal, reducing support inquiries, protecting retailer margins, and creating a smoother checkout experience that can drive higher conversions.

With shipping protection, retailers can: 

1) Reduce support inquiries for delivery problems, directing shoppers to a self-service portal to submit claims and resolve delivery issues.

2) Unlock a new revenue stream, offsetting operational costs via insurance premium margins.

3) Retain more revenue, issuing fewer refunds for orders that encounter delivery challenges.

4) Boost consumer confidence at checkout, increasing likelihood of conversion for shoppers concerned about potential loss, damage, or theft during delivery.

Availability

Shipping Protection is currently available to U.S. retailers.

Disclaimer

¹ Package insurance is provided by UPS Capital Insurance Agency, Inc. via the Narvar platform.