In a perfect world, your shipments would arrive on time, in good condition, and porch piracy would be as harmless as a swashbuckling tricker treater on Halloween.
In the real world, though, porch piracy is neither cute nor limited to one night in October. Some 10% of shipments are lost, damaged or stolen in transit. Moreover, 7 in 10 customers are unlikely to shop from an online retailer after a poor delivery experience.
You can mitigate your financial and reputational risk with shipping insurance from Easyship. Just add insurance to a package to protect it against loss, damage, or theft with up to $10,000. If your shipment goes amiss, you get reimbursed for the full declared value of the item by Insureship, our A+ rated insurance provider.
Mighty Jaxx, an award-winning collectible toy designer, uses our shipping insurance to safeguard its packages, profits, and reputation at once. This blog explores how Easyship's insurance solved the brand's risk problem, and why our coverage is the smart choice over declared value protection from couriers.
Mighty Jaxx: Secure with Shipping Insurance
Shipping insurance is a no-brainer if your business:
- Sells high-value items
- Relies on successful delivery for customer loyalty
Mighty Jaxx, a collectible toy studio based in LA, fits the bill for both. The company’s unique toys are highly sought-after by a rabid global fan base. Patrons snap up the one-of-a-kind creations minutes after the drop, expecting their prized investments to arrive in good condition and without a hiccup.
Before switching to Easyship, Mighty Jaxx was in a pickle. The company sold worldwide, but most of its cost-effective couriers didn’t offer package protection. If coverage was available, the brand’s high-ticket toys weren’t covered in full.
Complicating matters, Mighty Jaxx was aware that the majority of eCommerce shoppers wouldn’t tolerate a bungled delivery – even if the brand wasn’t at fault. Moreover, many buyers would expect some form of compensation for any delay, damage, or loss. All told, given the commonality of delivery errors, the financial risk of paying out of pocket was too great.
Mighty Jaxx used Easyship’s third-party insurance to cover packages at an affordable rate. For just 1%-1.5% of the item value, the company secured all shipments from loss, damage, or theft up to $10,000.
To cover costs, Mighty Jaxx built the price of insurance into its products. Shoppers, ready to pay hundreds per toy, didn’t bat an eye at the minor price increase. Shoppers did appreciate, however, the immediate and total reimbursement they now received on waylaid orders.
Mighty Jaxx was fast to reimburse customers because Insureship, Easyship’s insurance provider, pays all insurance claims in just 5-7 business days. This meant the company recouped the reimbursements paid to buyers in short order. Mighty Jaxx was so confident in reimbursement that it often splurged on rush delivery to reinforce customers’ loyalty.
Nobody's immune to shipment snafus, but insurance allowed Mighty Jax to mitigate its exposure to loss and reputation erosion. With full reimbursement in a timely fashion guaranteed, the brand was able to offer the premium service experience its fans expected.
Third Party Insurance vs. Declared Value Coverage
As Mighty Jaxx discovered, third-party insurance has a few key advantages over the declared value coverage offered by couriers:
- Better coverage
- Faster payouts
- More claims paid
- Higher payout limits
Easyship’s low rates can be about half the cost of the declared value protection offered by courier services, for example. We also get all claims paid in 5-7 business days, whereas couriers can take weeks on end.
Third-party providers also pay more claims than couriers. It’s a matter of incentives, really. Couriers make their money on shipping, so every unpaid claim is pure cash in hand. For example, declared value protection puts the burden of proof on the merchants, meaning you often aren’t covered in the case of theft.
Third-parties, by contrast, make their name on showing up for merchants. This is why you get more coverage from third-party providers (up to $10,000 with Easyship), and you’re covered from theft.
Best Practices For Easyship Shipping Insurance
You can protect a shipment many ways on Easyship. Our easy shipping dashboard gives you a set of options for adding insurance at various stages of the shipping journey, including when you:
- Purchase a label
- Automate with Shipping Rules feature
- Create a shipment
- Import orders into Easyship
- Use Easyship Collect (crowdfunding only)
Here's a brief overview of each option.
You have the option to cover uninsured shipments as you buy shipping labels from couriers, as shown below.
Automate Insurance with Shipping Rules
Shipping Rules is part of the shipping automation in Easyship. It lets you create rule-based preferences that pre-determine which shipments qualify for insurance.
For example, you can create a rule that any order valued at $100 or more receives insurance. Or, just include blanket insurance for all shipments, like Mighty Jaxx.
Every time you create a shipment in Easyship, you can choose to add insurance with just a click.
During Order Import
When you integrate your eCommerce platform with Easyship, you sync your orders. If you opt to use the CSV import function, you can load SKUs with a preference for shipping insurance.
Crowdfunding: Easyship Collect
Crowdfunding campaigns can use a special feature called Easyship Collect, allowing customers to add shipping insurance to their order, among other premium shipping options like rush delivery. You can activate Easyship Collect for your campaign here.
Forthcoming: via Tracking Email
Soon, your customers will have the option to add insurance to their order en route to delivery. Customers will only need to click into their dedicated tracking page to add insurance on their own dime starting at just 98¢. We’ll update you when this new feature rolls out.
Filing an Insurance Claim
Easyship allows you to file an insurance claim and get paid in record time. Our revamped Insurance Claims Portal requires less paperwork, enabling faster processing for faster payouts. In fact, it takes literally two minutes to file a claim with our insurance provider, Insureship.
This simplified flow makes sure that Insureship receives all claim information the first time. This means there’s no back and forth or waiting for payouts. Our simplified claims process shaves days off the average payout from couriers, which can take weeks.
With Easyship, you get reimbursed in just 5-7 business days every time. In the meantime, you can see the status of the real-time claim for your shipment in your dashboard next to order number. You can learn more about the claims portal and process in this full blog.
Trusty Shipping Insurance from Easyship
It’s risky business being an eCommerce merchant these days. For this reason, shipping insurance is a popular option for merchants keen to protect their packages, profits, and reputation all at once.
With Easyship’s third-party insurance, you get full reimbursement in 5-7 business days after filing an insurance claim. As with Mighty Jaxx, it’s a small price to protect your brand, customers, and profits at once.
You can learn more about third-party insurance here.
Here’s a full support article for setting up your insurance options.
Or just create your free Easyship account to start saving on insurance and shipping today.