Parcel shipping is a rapidly growing business. More than 65 billion packages were shipped worldwide in 2016 alone. Compared to 2014, this number has increased by almost 50%. With so many packages underway, the chance of an item becoming damaged, broken, or stolen increases.
On average, more than two-thirds of individuals have experienced late delivery, missing packages, or damage to their orders. As online shopping and home delivery increases by approximately 5% annually, so do the opportunities for parcels to go missing.
Without shipping insurance, businesses could potentially face massive financial losses. Additionally, the resulting dissatisfied customers could damage your company's reputation. However, there are many other benefits of shipping insurance that you might not know.
1. Parcel Security
Unfortunately, parcels have to pass many risky checkpoints while on their way to customers. It's not unusual for packages to be stolen, go missing, or get damaged in transit. These problems can happen at any time during the transportation process, and in many cases, delivery services don't reimburse merchants for their losses. Many carriers fail to take responsibility for lost or damaged parcels. With shipping insurance, the insurer handles any damages resulting from transit issues. A third-party insurance company can offer reimbursement through a simple claims process.
2. Protection from Financial Loss
When shipments fail to reach their destinations, retailers are often left with the burden of refunding customers' money or resending products. As a result, businesses can face significant financial losses. The postal service typically offers low amounts of coverage for lost or missing parcels. Sending high-end and expensive products can make these losses even more dramatic. Shipping insurance is the most affordable method for merchants to insure valuable and fragile items.
Convenience is one of the most considerable advantages of shipping insurance. Retailers can easily track their orders throughout every step of the way. Additionally, retailers can get dashboard notifications informing them of delivery failures, hazards, and parcel status updates. Retailers can integrate their current shipping systems to create a single point of contact for all delivery issues.
4. Protection from Disasters
Natural disasters can potentially destroy an entire shipment of orders. Storms, shipwrecks, wars, and other voyage perils can cause unexpected delivery disasters that could have devastating effects on a retailer. Parcel insurance offers protection in catastrophic events and protects merchants from the enormous costs of such a tragedy.
5. Less Paperwork
Merchants can streamline their shipping process with the help of third-party insurance coverage. Shipping insurance companies offer software that can eliminate the need for excessive paperwork. As a result, businesses save time, money, and resources. Meanwhile, a flexible online platform helps retailers manage their shipping systems for a clear overview of transactions.
6. Company Reputation
Whether you're starting with your first online business or an established e-commerce merchant, product delivery plays a pivotal role in satisfying customers. When customers don't receive orders, or items are damaged, they expect the retailer to correct the problem. An insurance provider can offer quick and reliable claims processing, enabling retailers to replace and refund orders promptly. With favorable order processing reviews, your business will be on its way to building up a favorable reputation among customers.
7. International Growth
Expanding your company to include international sales can be a tremendous growth opportunity. However, shipping parcels abroad significantly increases the chances of a delivery mishap. Packages can face particular difficulty passing through customs and various foreign postal stations. Parcels with shipping insurance are protected throughout the entire international shipping process.
8. Simplified Release of Goods
An additional concern when shipping parcels overseas is a principle called the “general average.” Some accidents that occur to transport vessels require that all parties involved divide up the monetary losses equally. As a result, your business may have to pay an enormous cash deposit to retrieve the cargo. Shipping insurance can take over at this point and ensure the timely release of your shipment.
9. Enhanced Business Intelligence
Your shipping insurance provider can help improve your business operations with the help of intelligent software, such as Cabrella Shipping Insurance Software. The ability to instantly file a claim, track packages, and review carrier exceptions are just some of the advantages of shipping insurance software. However, customers benefit most from an abundance of analytical and statistical data to uncover critical customer insights. As a result, businesses can fine-tune their shipping practices for improved operational efficiency.
10. Customer Satisfaction
Perhaps most importantly, shipping insurance results in higher levels of customer satisfaction. By insuring parcels, a business can save money and time, while improving operational efficiency. Customers will appreciate the reliability and convenience that contribute to a more comfortable shopping experience.
Wrapping Up the Benefits of Shipping Insurance
Even major carriers, such as UPS and FedEx, offer limited assistance for lost, stolen, and damaged parcels. For businesses that prioritize the safe and reliable delivery of their products, shipping insurance provides valuable support for all merchants. In addition to reimbursing retailers for the loss or damage of goods, filing a claim with a shipping insurance provider is significantly simpler than at the postal service. Equipped with an online dashboard, business owners can easily track shipments, identify operational inefficiencies, and review analytical data that helps them build up a reputation as leaders in customer satisfaction.
Third party insurance carriers, like Cabrella, are also a popular option. They can be much less expensive than common carrier insurance, sometimes up to 90% cheaper. Their ability to customize the protection of your shipment will complement any shipping process you choose to use.
See how much you can save with Cabrella Shipping Insurance by getting a quick quote below!