How a Positive Delivery Experience Can Protect Your Brand and Bottom Line

It’s no secret that word of mouth and positive online reviews can have a major impact on consumer purchasing decisions. While your business may meticulously plan the customer experience on your eCommerce platform and take great care in positioning your brand, that goodwill may be impacted by a negative shipping experience.

When consumers shop online, they often expect free delivery and for the product to arrive in premium condition. With escalating transportation costs, supply chain disruptions, and porch piracy on the rise, it can be difficult for small and medium-sized businesses (SMBs) to consistently meet consumer expectations.

Shipping Mishaps Can Lead to Negative Reviews

According to the Personalized Shipping Experiences: The Next Frontier for eCommerce report commissioned by UPS Capital, 72% of SMBs said that shipping incidents like loss, theft, and damage have negatively impacted their customer reviews in the past year. And, based on the report, the top reasons a customer will leave a negative review are if their package arrives damaged or never arrives (66%) and if their shipment is delayed (40%).

Help Protect Your Profitability

Concern over shipping mishaps is increasing in importance. The same report noted that nearly half (47%) of consumers reported that they would prioritize the safe arrival or replacement of their product in the event of loss, porch-pirated theft, or damage over two-day shipping. Receiving an order in prime condition is a customer priority considering today’s supply chain uncertainties and the rise of trends like porch piracy.

Shipping insurance can provide peace of mind about shipping and delivery concerns for SMBs and shoppers alike. Consumers can gain confidence about their shipping experience with the knowledge that their orders may be eligible for coverage in the event of a loss, damage, or porch-pirated theft.

Consumers are also willing to pay for shipment protection. In the same report, 65% of consumers surveyed said they would be interested in having the option to self-select the addition of shipping insurance for specific online items.

Shipping protection can also offset a business’s costs associated with replacing an order. Additionally, SMBs can save money by reducing time spent on managing claims and consumer inquiries.

Businesses should consider these important facts in the wake of ongoing supply chain disruptions. For more information on shipping insurance solutions that can help protect your customer experience, visit upscapital.com.

Unless otherwise noted, all statistics used herein are derived from or based on information contained in the 2022 Personalized Shipping Experiences: The Next Frontier for eCommerce Report, which is based on a compilation of two independent surveys of 1,000 U.S. consumers age 18+ and 500 U.S. small and medium-sized business making $750k-$100M in revenue conducted by Dynata in January 2022, respectively, on behalf of UPS Capital.

View the UPS Capital Insurance Agency, Inc. disclosure at upscapital.com/disclosure


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