If you’re choosing to ship with USPS you may want to consider insurance. If you’re shipping with UPS or FedEx, you’ll already be covered for the cost of shipping a t-shirt because it falls under the $100 declared value. Let’s look at two examples:įor the first example, let’s say you sell low-cost t-shirts on your site with the maximum retail price of a shirt being $25. When Is Shipping Insurance Worth It?ĭetermining whether or not shipping insurance is worth it will largely depend on the items you’re selling and the distance they are traveling. You can see that by choosing shipping insurance through Shipsurance via Shippo can save you up to 48.82% on your shipping insurance cost. Let’s say you’re shipping an electronic device worth $150, and you’re looking to insure your product before shipping it. As an example, we’ll look at using Shipsurance via Shippo. Using a third-party shipping insurance can be a great way to lessen the cost of protecting your products during the delivery process. International shipments have a limit of $25,000. The $100,000 maximum declared value limit for FedEx shipping insurance is available to those who sign up for the high-value jewelry shipping program and only applicable to domestic shipments. $1 extra per $100 additional declared value Cost of FedEx Shipping Insurance Declared Value of Product If you’re shipping from UPS Drop Box the limit is $500. If you’re shipping from a UPS Store the maximum is $50,000, but if you’re shipping via a third-party retailer the limit is $1,000. The maximum declared value will depend on your shipping method. Cost of UPS Shipping Insurance Declared Value of Product Fees start at $2.45 and increase as the declared value of your package goes up. If you’re sending your packages with the US Postal Service, the price for USPS insurance will be affected by the declared value of the shipment. Cost of USPS Shipping Insurance Declared Value of Product However, that cost is a less positive experience for your potential customer and can deter them from purchasing on your site. There is also the option to pass this fee onto the customer so you don’t pay anything at all. The cost of shipping insurance will depend on either the carrier you’re using to send your package, the software you use to generate a label, or the third-party insurance company you’re using to insure your package. You’ll pay a small fee initially but will be able to have peace of mind in the event that anything goes wrong with your product. Shipping insurance works similar to getting insurance of other types. By adding shipping insurance to your package you can be reimbursed the declared value of the products within the package in the event they arrive at the customer damaged, delivered but stolen, or never arrive to the customer at all. Shipping insurance is an added service to your shipment that protects it against damages during transit or if it gets lost in transit. While you’re trying to decide whether shipping insurance is really worth it, let us help answer some of your questions, such as what it is, what it does, how much it costs, what your options are, and a look at the cost-benefit analysis for your particular business. With the shipping process being so vital to customer retention, and damage + lost packages being so prevalent in the world of e-commerce today, the best safeguard for your shipments is often through shipping insurance. 70% of consumers say they are not likely to return to an online business if they had a poor delivery experience 3.Over 1.7 million packages nationwide are lost every day resulting in about $25 million in lost goods and services 2.One out of 10 items shipped arrived damaged 1.While it may seem like another added expense, there are a few eye-opening stats that every business owner should consider: To add shipping insurance or not to add shipping insurance? That is the question e-commerce businesses have to ask themselves almost every time they ship out an order.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |