Besides a consumer’s distaste for a particular product, damaged goods is another reason for online goods to be returned. Return rates can be as high as 25% per online retailer, which is a very alarming figure! Avoiding product damage during transit can bring down your product return rate and increase your sales, by landing you good reviews.
Durable packaging is not sufficient to preserve the integrity of your products. During transit sudden impact and rough handling can damage them. Accidents are unavoidable circumstances that can be costly in business. The risk of theft, pilferage and bad weather can also lead to product damage. To make sure you never have to bear the consuming costs of uncertainties during transit, it is best to insure your ecommerce shipments.
When Should you Consider Getting Insurance for your Shipments?
When insurance is included in shipping cost
Many online retailers take up separate insurance policies to protect their merchandise during transit. However, some logistics partners provide insurance coverage within their shipping plans. This means no additional costs. So it is advisable to consider multiple courier partners and review their shipping facilities thoroughly before tying up with them.
When you plan on shipping anywhere and everywhere
Did you know insurance cover for your shipments can expand your ecommerce reach? Ever noticed why online sellers are mostly a big deal in urban areas? It’s because it’s much easier to deliver goods in cities, given the amount of development in these regions. Transporting any kind of product is quick and easy in developed cities like Bangalore, Pune and Hyderabad.
Shipping to remote areas involves major transit risks. With proper insurance for your goods, you won’t have to worry about where your products are going or the risks involved in getting them to the end customer. This way you can add rural locations to your product outreach even international locations.
When shipping items of high value
If you sell online products of high value, like jewellry, electronics, household appliances and furniture, it would be advisable to insure your shipments especially over long distances. Loss or damage of these kinds of goods can lead to setbacks your business may not be able to recover from. Insurance will provide you with a sense of security and peace of mind while your products are literally out of your hands.
When you sell online as an independent seller
If you do not have a marketplace to back you up with product refunds, you could be in severe trouble when your products return damaged and broken. Insurance over your shipments can save you financial trouble. Whether you have an online store or a Facebook store, protecting yourself with shipping insurance can ease your tensions and encourage you to venture deeper into online retail.
Other ways to reduce transit risks
– Pay attention to packaging materials. Make sure you use the right kind of packaging for your products.
– Discreet packaging does not give away the contents within. This will reduce chances of theft.
– Use proper labels so your logistics persons know how to handle your merchandise. Instructions like handle with care, keep away from heat, water or keep under certain temperature are essential to preserve your products.