In a world where e-commerce and online shopping are getting bigger and bigger, the need for your products to arrive safe and in time is the number one priority of businesses. As more and more businesses are offering their products online for anyone to buy, the traditional way of opening a store is not necessary. But this changes the shopping game and the rules of the game altogether.
With online shopping, there comes a new problem. This problem was never a “problem” during the traditional way of selling your product though a physical store. Namely, businesses and brands need to successfully ship every order to their customers. Otherwise, they may face backlash over the lack of professionalism.
As statistics show, UPS has 84% on-time delivery rate. This means that 16% of all orders don’t make it on time, or don’t make it at all. Furthermore, a whole 10% of all orders come with damaged packaging, and 6% of those orders came with damaged goods. You can try to imagine some of the ways that your order might get damaged whether that’s during the packaging, loading, or unloading process.
And with numbers like these, one might think that 10% is quite low. But in actual fairness, 10% of all shipments throughout the year could be a 7 figure number. So because of that, we are going to tell you why you need to get shipping insurance for your next shipment.
The Destination Country
When you’re shipping to a highly developed country, or area, then most likely you won’t need shipping insurance, and you can expect your package to arrive safely and on time. However, not everyone lives in a highly developed area, and you might need to ship your package to a somewhat rural area or poorly developed country. If you are shipping to such areas, then chances are bigger that your shipment’s safety might be compromised. Contributing factors towards this could be the lack of professionalism of the carrier service, and that’s why you need to insure your shipment. This adds us nicely towards the second reason, and that’s…
Highly professional carrier services like DHL, FedEx, and UPS, pride themselves on providing the best possible service to their customers. This mean on-time delivery and safely delivering the goods are their number one priority. Public postal services like Canada Post, USPS, and Australia Post also tend to offer the same level of professionalism as shipping carriers. Such services offer free coverage of items up to $100 and charge extra if the value of your order exceeds $100. If you ship with any of these carriers, rest assured knowing that your order will be hand delivered to your doorstep. But if you are going with less known, and less experienced, newer, shipping carriers, then a smart move would be to insure your next order.
Type of Product You’re Shipping
When ordering more expensive and fragile items, it’s preferred to always insure your shipment due to the high-risk damage. If you’re shipping basketballs, the chances of the items getting damaged are none existent. However, if you’re shipping expensive jewelry or electronics, always make sure to insure your order because of the various risk factors involved. Such goods tend to cost more than other items, and thus the risk factor is higher. Furthermore, you never know if the carrier service employee decides to look at your order and declare it lost in transit.