It’s tempting to insure every package when you’re first starting in eCommerce. While it may be a wise practice when initially launching your business, there may be some alternatives to consider when debating about using shipping insurance.
Learn more about what shipping insurance is to better realize how it can help your business when a package is lost or damaged. You’ll also understand more about when shipping is worth it and why these costs are smarter than replacing an item out-of-pocket.
What is Shipping Insurance?
Shipping insurance is a product offered by carriers to cover a specific shipment. The benefit of having it is that it protects you against cases involving damaged, stolen, or lost packages. The amount of reimbursement depends upon the acknowledged value of the items you ship when the products don’t arrive or they show up damaged.
The objective is that it provides you with peace of mind and can also protect your business and save you money and headaches. As far as cost goes, shipping insurance almost always comes from the carriers themselves. However, there are third-party options to select from as well.
When Is It Worth it?
There’s no easy answer to this question but it largely depends on your business and your needs. That said, there are a few instances where insurance is a wise choice for any business. For instance, the higher the items cost the more likely that it’s worth it. Shipping at high volumes generally makes it worthwhile when your orders’ total value is significantly higher than the insurance cost.
Remember, if you need support, we can help. At Shipjoy, we specialize in delivering shipping outsourcing solutions that make sure customers get your products with a solution that is easy, affordable, and accessible for a wide range of different e-commerce sellers. We’ll help you prepare for the biggest sales event of the year the right way. Get Your Free Quote Today.