Since the pandemic, online businesses have rapidly grown and along with this, the need for quick and easy parcel delivery has presented itself.
We’re sure you know of many businesses that have reached new heights lately!
Did you know?
According to statistics, over 159 billion packages were shipped across the world in 2021. In keeping with these statistics, the volume of packages delivered globally is growing rapidly and is expected to reach 256 billion by the end of 2027. Pretty cool, right? We know!
With an ever-growing rise in shipping, the risk of packages sometimes getting damaged, broken, or even stolen also increases. Here is where shipping insurance comes into play.
What is Shipping Insurance?
Shipping insurance can be viewed as coverage for orders shipped with the help of courier companies.
This can be used to recover any losses that may occur if a package is damaged or lost while in transit. Think of this as a safety net, why don’t you?
Shipping Insurance is the need of the hour for businesses, especially small-scale ones that could face huge financial losses if any of their products are damaged or lost.
The customer that did not receive their order in time due to any reasons that may have caused a delay or failure of delivery can even further damage the company’s reputation.
To avoid this and other losses from occurring, e-commerce businesses must be sure to get shipping insurance.
So the next time you’re thinking of starting a small business, don’t forget to get shipping insurance to cover your losses!
Here are 7 Reasons Why You Need Shipping Insurance:
1. Security and Protection
The number one reason why it is essential to have shipping insurance is to have a sense of security.
What we mean by this is that when it comes to shipping, packages have to go through several checkpoints before they reach their customers.
In this process, a parcel may be lost, damaged, or stolen in transit. This is not uncommon in cases of shipping and delivery.
Carriers may often refuse to take responsibility for the damage caused to the business or customer.
This common occurrence can happen at any time and does not guarantee a reimbursement for the damage or loss.
A simple claim process of shipping insurance can ensure that reimbursement is offered by a third-party company to the concerned party.
How convenient is getting shipping insurance for you? Ecommerce retailers, with shipping insurance, are given access to systems that help them track the progress of their orders at each stage of package delivery.
They are also sometimes provided with regular dashboard notifications that alert them of any issues or problems that may arise.
With the help of shipment status, retailers can track any changes, risks, or problems in the process of delivery.
3. Customer Satisfaction
With the help of shipping insurance, retailers can ensure that all deliveries are completed by the shipping company.
Timely deliveries go a long way in customer satisfaction and customer loyalty. It also shows that the business is reliable to the customer.
Shipping insurance helps one achieve this goal by making sure that the retailer is aware of any changes, disasters, or issues that occur during the delivery of the package.
It also helps one save time and money, making shipment an easier and more efficient process.
4. Company’s Reputation
Timely delivery of packages is what keeps a customer happy and satisfied. Be it a fairly online shopping only business or an established one, a company’s reputation accounts for a lot of business.
Customers may often take to online platforms to complain about any issues that they faced and may even leave reviews on the company’s website.
This can cause damage to the company’s reputation. However, shipping insurance helps avoid such instances by making sure claims are rapidly and easily processed.
5. International Shipping
Many businesses have now turned international and ship their products to countries overseas. International shipping, however, can leave a little more room for delivery error than domestic shipments.
This error arises as a result of customs and international post offices. With shipping insurance, packages can be insured for all damages that may occur even during international shipping.
6. The use of AI in shipping to improve business operations
Business operations are significantly improved with the help of shipping insurance.
Insurance companies make use of intelligent software to help the retailer file a claim, track parcels, and even review the entire shipment process. They do so with the help of dashboards and applications.
Data collected in the process can also be used to further help retailers gain insights and work on persistent issues.
Businesses can then look deeper into these issues and improvise their operations.
7. Lesser Paperwork
Shipping Insurance can help business merchants streamline their shipping process with the help of third-party coverage.
This is done with the help of automatic software that makes the process of insurance and shipments both easier and more efficient.
This in turn eliminates the need for excessive paperwork. Businesses can then save time, money, and resources.
A flexible online platform is hence provided, where they can manage their shipping systems making them easier and clearer.
Transactions are also simplified and can be easily tracked with the help of third-party shipping insurance.
Some other benefits are as follows:
- Improved scalability of the business
- Better customer service
- Streamlining of goods
- Defense against disasters
- Hasslefree shipments
- Peace of mind
There are several benefits of why businesses should get insurance for their shipping process. When looking for shipping insurance, one must be mindful to:
- Avoid lengthy claim periods
- Insure shipments and full value of any items that may be damaged or lost
- Spend efficiently
When shipment processes are insured and automatized, it leaves lesser room for error and it significantly improves the business operations.
Even major shipping labels and carriers provide limited support for packages that are lost, stolen, or damaged during shipping.
Insurance covers shipping damages, offers support to merchants, and prioritizes the delivery of their goods and products.
Shipping insurance not only ensures that a retailer is compensated for the losses or damage to their products but also simplifies the process of shipping and delivery of packages.
Tracking and transactions are also made more convenient with the help of shipping insurance.