As a Shopify store owner, one of the most stressful experiences is dealing with lost, damaged, or delayed shipments. Shipping mishaps happen no matter how great your products are or how well you’ve set up your online store. This can adversely affect your company’s track record in addition to the experience of your clients.
One regularly asked concern is whether Shopify provides shipping insurance to cover these issues. Let me direct you through this topic using my experience and comprehensive research. After reading this post, you’ll know more about Shopify shipping insurance, your choices, and how to secure your customers and your shop.
The Essentials of Shopify Shipping Insurance
Let’s first dispel a widespread misunderstanding. Shipping insurance is not a feature of Shopify’s basic plans by default. Yes, you or the carrier, not Shopify, are usually at Risk of loss, damage, or theft during transit if you use its shipping tools. Don’t freak out just yet, however. There are strategies to protect your company and clients.
How Shopify Handles Shipping and Protection
To fully understand what’s available, it’s essential to explore Shopify’s shipping protection options and how they fit into your business. Shopify provides shipping services by incorporating businesses such as UPS, DHL, and USPS. As a merchant, you should work out each carrier’s policies and coverage alternatives to safeguard your products.
For circumstances, specific products may come with automatic coverage of up to $50 for damage or loss if you send them out locally through the USPS. That isn’t real for all delivery options, however. Investigating each carrier’s protection options in higher information is a wise concept.
What’s the Deal with Shopify Shipping Protection?
If you’re using Shopify to run your eCommerce store, you might’ve encountered something called Shopify Shipping Defense. However, what is it?
Shopify offers integrated shipping insurance for eligible orders through Shopify Shipping, covering up to $200 in value at no extra cost. Additional insurance can be bought for higher-value shipments. This feature is designed to offer peace of mind to both merchants and customers by covering concerns like damage, loss, or theft during transit.
But it’s not readily available to simply anybody. To certify, your shop is required to check a few boxes:
- Be on a Shopify, Advanced, or Shopify Plus strategy.
- Have Shopify Payments activated
- Ship from the United States
- Utilize a label acquired through Shopify Shipping with tracking.
- Ensure items comply with Shipsurance’s Terms of Service.
The advantages? Shipping security helps you save time and money on replacements and boosts consumer fulfillment– a huge win when it concerns repeat service.
Shopify Shipping Protection could be a solid value-add for your store if you’re shipping to the U.S. and meet the requirements.
What about third-party shipping insurance coverage at the Shopify app store?
While Shopify provides its own Shipping Protection through Shopify Shipping, you may want to check out third-party shipping insurance apps offered in the Shopify App Store for more flexibility or extra protection. The route is one of the Shopify App Store’s most installed Shopify shipping protection apps. They currently have 3.7 out of 5 rating points in the app store. Suppose you are looking for more control and free integration at no charge. In that case, Assurify shipping protection is a well-liked choice that can provide a smooth approach to protecting your shipment, especially if you’re providing services overseas or require more customization.
Assurify offers features such as:
- Methods for personalized insurance coverage for all delivery values
- protection versus theft, loss, or damage while in transit
- Simple Shopify integration for efficient order processing
- Reasonably priced and clear rates
It’s a fantastic option if you’re searching for more specialized protection than Shopify offers by default or require shipping to locations that Shopify’s integrated security does not cover.
Assurify ensures a better general experience for all parties involved by lowering your risks and increasing your customers’ trust.
Pricing of Route Protection
The path provides three prices to prepare for shipping defense. The Basic Plan starts at $0/month and includes plan security for lost, damaged, or taken items, fundamental tracking, and declared resolution. The Pro Plan, beginning at $349/month, includes sophisticated tracking, item recommendations, carbon-neutral shipping for all orders, more branding options, and customer emails. The Custom Plan, with rates based on your company’s needs, uses extremely personalized functions, dedicated support, and enterprise-level services. These plans help services boost client experience and enhance post-purchase processes.
Real-World Example: My Shipping Protection Experience
I’ll give you a little example from my own life. I sold a personalized leather jacket to a customer in a different state a few months ago. I was just as happy to see it go as the purchaser was with their purchase. Regretfully, USPS delayed the item; a week later, it was still missing.
As you can imagine, I was worried. My customer was anxious, and I didn’t want this to affect their trust in my business. That’s when I remembered Shopify Shipping Protection. I could submit a claim to Route because I had elected to use the service, and the client had decided to add insurance. I didn’t lose the product or any money; the purchaser received a refund. I was relieved.
For this reason, I suggest turning on Shopify Shipping Protection. It adds extra protection to your company and is an easy, efficient method to avoid the shipping dispute nightmare.
How to Set Up Shopify Shipping Protection
Setting up Shopify Shipping Protection is relatively simple. Here’s how you can get started:
- Enable the Route: To use Shopify Shipping Protection, you must install the Route from the Shopify App Store.
- Customize the Settings: Once the app is installed, you can customize your shipping protection settings. You can choose whether to include it as an option for your customers at checkout and determine whether you’ll cover the cost of the protection or pass it on to your customers.
- Connect with Clients: It’s usually an excellent concept to let your clients know about the possibility. You can include a message or an email alert discussing the defense’s operation in your checkout process.
If anything goes wrong during the delivery process, your clients will be protected from being left holding the bag if you include this insurance.
Other Shipping Insurance Options for Shopify Merchants
If you prefer more choices or do not wish to use Shopify Shipping Protection, alternative techniques for protecting your deliveries are used. Alternative shipping insurance coverage choices to consider are as follows:
Suppliers of Third-Party Shipping Insurance | Assurify
There are a lot of third-party shipping insurance apps available on Shopify. Depending on different subscription options, most provide almost the same features for $10-$300. One of the most convenient and easy integration-based apps is Assuify. Assurify shipping insurance provides specialized shipping insurance coverage for online merchants. This Shopify shipping protection uses more versatile defense choices, including more considerable protection limitations and particular forms of defense (such as damage, theft, or held-off delivery), and coordinates with various carriers.
Pricing of Assurify App
Assurify shipping protection is completely free of charge compared to all other third-party Shopify shipping apps. That means new merchants and those already using other third-party insurance for Shopify are 100% recommended to use the Assurify app for their store.
Install now Assurify Shipping Protection. We have covered in detail in our another blog Assurify Shipping Protection Pricing.
Insurance Provided by the Carrier
You could choose insurance straight through the provider of your choice. For instance, UPS offers insurance, and FedEx does. This can be convenient if you work with a specific carrier for most shipments.
Credit Card Shipping Protection
Some credit card companies offer shipping protection as a benefit when you use their cards to pay for shipping. If you’re using a business credit card, check with your provider to see if this option is available.
Benefits and Cons of Secure Shipping on Shopify
Before choosing, it’s essential to consider the advantages and disadvantages of Shopify Shipping Protection. Here is a brief synopsis:
Benefits:
Simple to Set Up: It integrates seamlessly with your Shopify store.
Convenience for Customers: Customers avoid dealing with complex claims by choosing protection at the register.
Reduced Risk: if the package gets lost, stolen, or damaged, you can file a lawsuit against Route immediately.
Cons:
Bonus cost: The protection value is more expensive than the protection amount.
Restricted Coverage: Shipping protection by Shopify doesn’t cover everything. Some types of harm or loss might not be protected by it.
Actionable Takeaways for Shopify Merchants
Here are some crucial lessons you need to remember for your Shopify shop after everything is said and done:
Make use of Shopify Shipping Protection.
A quick and cost-effective service to lessen shipping issues and assure your customers.
Explore Third-Party Insurance
Consider third-party options like Assurify Shipping Insurance if you want more customization or coverage.
Consider Carrier-Provided Insurance
Depending on the carrier you use, you might already have coverage, but confirming the details is essential.
Conclusion: Protect Your Shipments and Your Business
With this setup, you can ensure your clients’ security and secure your business from monetary losses during a shipping incident. Do not let shipping issues back your service– take control of your shipping defense today!
Frequently Asked Question
Q: What is Shopify shipping insurance, and how does it work?
Shopify shipping insurance protects orders from damage, loss, and theft. Merchants can claim coverage via carrier third-party providers and apps like Assurify for quick claims and refunds.
Q: Does Shopify offer built-in shipping insurance for merchants?
No, Shopify does not provide any built-in shipping insurance. However, Merchants use Third-party apps like Assurify and third-party Insurance to protect orders from loss, damage, or theft.
Q: How can you add shipping insurance to your Shopify store?
You can add shipping insurance by:
- Using a shipping protection app – Installing third-party apps from the Shopify app store like Assurify to offer seamless shipping protection at checkout.
- Carrier Insurance – Enable protection from carriers like UPS, FedEx, or USPS.
- Third-party providers – Using External insurance services to cover their shipments.
Q: What are the best third-party Shopify shipping insurance providers?
Some top third-party shipping insurance providers include :
- Assurify: Seamless integration, automated claims, and customer friendly.
- Route – Real-time Tracking and hassle-free claims processing.
- Shipsurance – Affordable, fixable coverage for various carriers.
- InsureShip – Comprehensive protection for lost, stolen packages and damaged products.
Q: Does Shopify Protect cover lost, stolen, or damaged packages?
No Shopify protection was limited to cover fraud-related chargebacks on eligible shop pay transactions, not lost, stolen, or damaged packages. For shipping protection, merchants need third-party apps like Assurify or carrier insurance.
Q: How much does Shopify shipping insurance cost?
Shopify itself doesn’t offer built-in shipping protection, but costs depend on the provider :
Third-Party Apps (e.g., Assurify, Route) – Typically charge a small percentage of the order value or a flat fee per shipment.
Carrier Insurance (UPS, FedEx, USPS) – Rates depend on the declared package value, starting from around $1 per $100 of coverage.
Q: Is Shopify Shipping Insurance Worth It for Small Businesses?
Yes, Shipping Insurance helps small businesses reduce losses from stolen, lost, or damaged packages. It helps to improve customer trust, minimize chargebacks, and ensure smooth order fulfillment. Apps like Assurify make it easy to offer protection at checkout and give customers peace of mind while boosting your store’s credibility.
Q: What happens if a customer’s package is lost or damaged on Shopify?
If a package is lost or damaged, the merchant or customer can:
File a claim with the carrier – If insured, the shipping provider (UPS Fedex and USPS) may offer compensation.
Use a shipping Insurance App: If covered by Assurify and another provider, the customer can submit a claim for a quick resolution.
Offer a Replacement or refund: To maintain customer satisfaction, some merchants choose to reship or refund the order.
Q: How do you file a shipping insurance claim on Shopify?
To file a shipping insurance claim
Check coverage: Verify if the package is insured through a carrier, third-party provider, or an app like Assurify.
Gather details: collect order info, tracking number, and proof of the damage.
Submit a claim: File the claim through the carrier’s website or the insurance provider’s portal.
Wait for approval: Once processed, compensation or a replacement order is issued.
Q: What are the best practices for handling shipping insurance in a Shopify store?
Offer Insurance at checkout– Make shipping insurance available to customers during checkout to reduce potential losses. The Assurify app simplifies this process.
Set Clear Policies – Clearly communicate your shipping insurance policies on your store’s shipping and return page.
Track shipments – Use tracking tools to monitor the delivery status and address issues quickly.
File a claim promptly -If a shipment is lost or damaged, file a claim with the carrier or your insurance provider as soon as possible.
Communicate with customers – Keep customers informed about the status of their orders and claims to maintain trust and satisfaction.
This is the best practice to minimize risk inc, raise customer confidence, and streamline shipping protection.
