Is Shipping Insurance Worth It?
Posted on January 24, 2019 by Matt Morelli
As an eCommerce company, the most common way to get your customer’s order in their hands is by way of a shipping carrier. Unfortunately, your shipments are sometimes lost, damaged, or shorted while in transit – and as the retailer, you’re the one who gets the complaint. It’s very rare that a customer calls the shipping carrier when something goes wrong. It’s on you to take care of them. But shipping insurance rates are too expensive to make it worthwhile to even consider getting coverage, right?
You might look at the USPS insurance rates and decide that the amount it adds to the cost isn’t worth the benefits it provides, and you may well be right. Same goes for FedEx shipping insurance, and the UPS insurance cost too.
But that may be where you’re making a mistake. The benefits provided by postal insurance are great. You don’t have to worry about packages going missing, customers demanding a refund, or the loss of your goods. These things might still happen, but the difference is that you don’t have to worry about them.
You might think that this is the most common reason for not insuring your shipments. It’s prohibitively expensive. Sure, you’d enjoy the benefits, but you can’t afford the package insurance rates. In truth, the most common reason many companies don’t even look for postal insurance is that they don’t realize it exists.
And then when they do discover it, it may look cost prohibitive --- at first. Especially when shopping carrier insurance rates.
As with many things, when you get locked into buying a service and insurance from the same company, you end up paying a premium for the convenience. That’s where we come in.
Interestingly enough, only a small number of ecommerce companies choose to insure their shipments, and a tiny proportion consider using a third-party insurer. However, we provide postal insurance for all the major carriers, and our rates are often up to 85% less expensive than the standard carrier rates.
You get the coverage that you need, your customer gets a hassle-free experience, and you’re not paying over the odds to make it all run smoothly. Would you rather have an angry customer call you and have no options to give them, or would you prefer the peace of mind that comes from knowing your shipment was fully insured?
By insuring your packages with U-PIC, you’ll save money compared to using the carrier’s inflated prices, and can rest easy, confident that you won’t lose out in the long run. Ask us about some easy ways that you can get insured without having to come out of pocket further!
If you’ve inquired about postal insurance rates with the United States Postal Service, FedEx, UPS, or any other carrier, get in touch to see how much better our prices can be for both companies, and individuals. We’ve got your back, so that you can service your customer properly!