Easyship Launches Buyer Insurance For Shipping: Protect Margins & Earn Revenue On Every Shipment

Lost packages cost you twice: replacement products plus reshipping fees. Damaged goods mean frustrated customers and eroded margins as refunds and returns bite.

But what if shipping issues could generate revenue rather than eat into your store profits?

New Buyer Shipping Insurance Feature

Easyship's new Buyer Shipping Insurance shifts shipping protection from a cost center into a profit opportunity. Give customers the option to purchase protection via branded tracking pages and delivery updates, while you earn a share of revenue on every insured order—reducing your operational risk and boosting your bottom line.

This marks a significant shift in how eCommerce businesses can approach shipping insurance. Instead of absorbing the cost of lost or damaged packages (or purchasing insurance yourself through third-party providers like Easyship), buyers can now protect their own purchases after checkout through tracking updates, while you benefit from reduced replacement costs and a new revenue stream.

Dual Benefits For Merchants: Protect Margins AND Earn Revenue

Buyer Shipping Insurance solves two notable operational challenges that eCommerce brands face:

Margin Protection: Customer-funded insurance eliminates your financial exposure to lost or damaged packages during transit. No more paying for replacements and reshipping out of pocket.

Revenue Generation: Earn a share of every insurance premium purchased. Your shipping cost center becomes a revenue driver, with shipping credits paid weekly through the Easyship dashboard.

The result? You're simultaneously reducing transactional risk while creating a new revenue stream to offset rising shipping costs—all without increasing your operational burden.

Ready to turn shipping protection into profit? Enable Buyer Shipping Insurance in your Tracking Email & Tracking Page settings to start earning on every protected shipment. Don't have an Easyship account? Get started for free here.

How to Set Up Buyer Shipping Insurance On Easyship

Getting started takes just a few clicks:

1. Navigate to your Tracking Email & Tracking Page settings in your Easyship dashboard
2. Toggle on "Offer insurance to buyers"
3. Insurance will automatically appear on tracking pages and emails for eligible shipments
4. Start earning a weekly revenue share on every protected shipment in the form of shipping credits

The feature integrates seamlessly with your existing shipping workflow—no additional setup or technical work required. Once enabled, insurance becomes available to buyers after label creation and remains purchasable for a set time before delivery.

Shipments already insured by you won't show the buyer insurance option, ensuring no duplicate coverage. When buyers purchase shipping insurance, you'll see "Insured by buyer" noted in your shipment details for quick comparison.

Why Buyer Shipping Insurance Outperforms Carrier Coverage

Many merchants assume carrier insurance provides adequate protection. In reality, carrier coverage limitations often leave both sellers and buyers under protected. With the limitations only becoming apparent after issues arise.

Easyship's Buyer Shipping Insurance vs. Standard Carrier Coverage

Standard Carrier Coverage:

• Low default liability limits (often $100 or less, depending on the carrier)
• Extensive exclusions for fragile, perishable, or high-risk items
• Complicated claims processes with tight deadlines
• High denial rates due to packaging and evidence requirements
• Reimbursements that fall far below the actual product value

Easyship Buyer Insurance:

• Coverage based on the full customer-declared package value
• Broader protection with fewer exclusions (see all insurance exclusions here)
• Streamlined claims experience filed directly by buyers
• Faster resolution times—most claims paid within days once completed
• Clear cash reimbursement terms tied to declared package value

This means better protection for your customers and dramatically less hassle for your support team when issues arise. Buyers file claims directly using their tracking number, often with no merchant involvement required.

How Buyer Shipping Insurance Works

After you generate a shipping label, insurance becomes available to your buyers through Easyship's branded post-purchase tracking updates. When buyers receive tracking emails or visit the tracking page before delivery, they will see an option to purchase shipping insurance if the shipment isn't already insured by you.

Buyers complete their purchase securely via Stripe and receive confirmation along with instructions on how to file a claim if needed. Coverage activates immediately and protects the declared package value during transit. If issues arise, buyers file claims directly—receiving cash reimbursement without merchant involvement—and almost all claims are paid within a week.

As a merchant, you'll earn revenue share on every insurance purchase, paid out weekly and visible in your Billing dashboard. Shipments show "Insured by buyer" in your shipment details, giving you full visibility into protected orders.

The insurance covers loss and damage during transit, giving buyers complete peace of mind and protecting your business from costly replacements or reshipping costs.

When Buyer Shipping Insurance Makes the Most Sense

While shipping insurance may not be necessary for every shipment, there are certain scenarios that make it a highly recommended addition:

High Value Shipments

For high-value shipments—such as electronics, jewelry, luxury goods, and collectibles—accurately declaring the package contents and value is crucial to ensure proper insurance coverage and reimbursement in the event of loss or damage.

Important: The declared value directly affects the level of protection and the cost of insurance, with higher-value items requiring more comprehensive coverage. Shipping insurers like Easyship may cover items valued at over $100, up to $10,000 USD, by offering much higher limits than standard carrier liability limits. Buyer insurance ensures these orders are protected without you bearing the full risk (as long as all terms, conditions, and item exclusions are met).

International Deliveries

Depending on the carrier selected, international shipments can face a higher risk for buyers due to longer transit times, multiple handoffs, and customs processes. Offering insurance on cross-border orders protects both parties and simplifies the claims process if issues arise.

Premium & Luxury Products

Products that are expensive to replace, rare or limited edition can benefit most from shipping insurance coverage. When shipping premium or unique products, offering insurance gives buyers confidence and protects you from costly replacements. Please be sure to check the list of covered insured products before taking out shipping insurance.

High Average Order Value (AOV)

If your AOV is consistently above a certain threshold, usually more than $100, buyer insurance becomes an attractive option for customers who want to protect their investment and merchants who want to limit their exposure on each order. Whether you pay for shipping insurance on behalf of your buyer or offer buyer-funded insurance to them, added coverage can prove a smart investment when your delivery is protected from damage or loss.

File Claims & Reimbursement: What Merchants Need to Know

One of the biggest advantages of Buyer Shipping Insurance is that claims are filed directly by buyers—with no merchant involvement required. This significantly reduces your support ticket volume, carrier correspondence, and refund handling workload. Occasionally, buyers will come directly to the merchant if issues do arise, but you can quickly confirm if insurance was paid by the buyer by checking the shipment summary inside the Easyship dashboard.

When shipping issues occur, buyers file claims directly using their tracking number. Approved claims are paid as cash reimbursement—not product replacement—typically within 3-5 business days. This keeps buyers satisfied while protecting your cash flow, as you're not on the hook for replacement costs or reshipping fees when covered.

The streamlined process means buyers get faster resolutions, and you get back time previously spent managing carrier claims and customer service escalations.

The Insurance Cost-Benefit Equation for eCommerce Brands

How much does shipping insurance cost when buyers fund it? Nothing—because the customer pays the premium entirely.

Insurance pricing is calculated based on the declared package value (be sure you accurately declare it!) and displayed clearly before purchase. Buyers always see the insurance price, maximum coverage amount, and full terms before completing payment.

For buyers, insurance typically costs a small percentage of the order value or a few dollars per shipment. This nominal fee gives them comprehensive protection while you enjoy:

• Zero insurance expense on your end
• Weekly revenue share from each insured shipment (visible in Billing dashboard)
• Reduced replacement costs when issues occur on the insured shipments
• Faster claim resolution compared to carrier insurance—buyers handle it directly
• Improved customer experience with transparent protection options and cash reimbursement
• Decreased support burden as buyers file claims themselves without merchant involvement

Get Started with Easyship's Insurance Coverage

Buyer Shipping Insurance represents a fundamental shift in how merchants can approach delivery protection. Instead of viewing shipping insurance as a necessary cost or operational headache, you can now turn it into a revenue-generating feature that protects your margin at the same time.

The dual benefit is clear: reduce your financial exposure to shipping issues while earning weekly revenue on every protected order. Better margins, new revenue, happier customers, less risk, and dramatically reduced support burden as buyers handle claims directly.

Ready to get started? Sign up for free and head to your Tracking Email & Tracking Page settings in your Easyship dashboard to enable Buyer Shipping Insurance today.

Shipping Claims Process & Carrier Insurance FAQs

Why is Easyship's shipping insurance superior to carrier coverage?

Easyship's Buyer Shipping Insurance offers broader protection than most standard carrier coverage, generally with higher coverage limits, fewer exclusions, and a simpler claims experience. Unlike carrier insurance, buyers file claims directly and receive cash reimbursement, typically within a week, without merchant involvement.

What does Buyer Shipping Insurance cover?

Coverage includes shipments that are lost in transit or damaged during transport, based on the declared package value. Approved claims are paid as cash reimbursement to the buyer, where they are free to place a new order directly with your store if desired.

What is NOT covered by Buyer Shipping Insurance?

Buyer Shipping Insurance does not cover parcel theft or any items excluded under Easyship's standard insurance terms. View the full insurance terms, conditions, and exclusions here.

Who files claims when issues occur?

Buyers can file claims directly using their tracking number. No merchant involvement is required. This significantly reduces your support workload while giving buyers faster resolution and direct cash reimbursement.

Does shipping insurance cover international delivery?

Yes, Buyer Shipping Insurance through Easyship covers international shipments, though some exclusions may apply for certain countries and types of goods. Always check the allowed items before purchasing insurance.

How much does buyer-funded insurance cost?

The cost varies based on declared package value and destination, but typically ranges from a small percentage of order value to a few dollars per package—paid entirely by the buyer. Pricing is displayed clearly before purchase for complete transparency.

When can buyers purchase insurance?

Buyers can purchase insurance after you generate a shipping label, accessible via tracking emails or the tracking page. The ability to purchase buyer insurance only remains available for a set time prior to delivery. Once a shipment is out for delivery or delivered (depending on the exact carrier status), insurance can no longer be purchased.

Can buyers purchase insurance if I already insured the shipment?

No, buyer insurance only appears if the shipment is not already insured by you, preventing duplicate coverage.

What happens if a buyer under-declares the package value?

Claims payouts are capped at the declared shipment value, so it's important to ensure accurate item values and descriptions. The declared value determines both coverage limits and insurance cost. Refer to the insurance terms and conditions for more details on limits and coverage.

Do I earn revenue from buyer insurance purchases?

Yes. You receive a weekly revenue share paid in Easyship shipping credits from all buyer insurance purchases, visible in your Billing dashboard. Shipments insured by buyers will show "Insured by buyer" in shipment details. This will result in falling shipping costs as credits can offset label purchases.

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Insurance Disclaimer

Easyship's Buyer Shipping Insurance is subject to terms, conditions, exclusions, and coverage limits. Coverage applies to carrier loss or damage during transit only, as outlined in the policy—stolen packages, item theft, and certain types of items are NOT covered. Claims are capped at the declared item and insured package value. Review the full Insurance Terms, Conditions & Exclusions before purchase.