How to Add Shipping Insurance on Shopify: A Complete Guide for Merchants

Table of Contents

1. Introduction
2. Why Shipping Insurance is Essential for E-Commerce Merchants
3. How Shipping Insurance Works with Shopify
4. Submitting Shipping Insurance Claims
5. Tevello’s Role in Shipping Insurance and E-Commerce
6. Conclusion

Introduction

Did you know that approximately 1 in 10 packages delivered in the U.S. arrives damaged? With rising e-commerce sales, so too does the concern about package theft, loss, and damage. As diligent business owners, we can't afford the hit that comes with unsatisfied customers who receive their orders in less than perfect condition. Are we prepared to shoulder the financial burden that often follows mishaps in shipping? This brings us to a crucial aspect of running an online store—shipping insurance.

In an era where every detail counts, offering shipping insurance can not only protect our business against financial loss but also enhance our customers' experience. When we can assure our customers that they are safeguarded from potential mishaps thanks to shipping insurance, we amplify their confidence and, ultimately, their loyalty to our brand.

This blog post aims to provide a comprehensive guide on how to add shipping insurance on Shopify. Throughout this guide, we will delve into the necessity and advantages of shipping insurance, explore the processes involved, and detail eligibility criteria, claims procedures, and pricing structures. By the end of this post, you should be equipped with the knowledge to seamlessly integrate shipping insurance into your Shopify operations—empowering us, as merchants, to deliver exceptional service while safeguarding our bottom line.

Moreover, as we explore the intricacies of shipping insurance within the Shopify ecosystem, you will discover how Tevello provides a practical, all-in-one solution, transforming the way we sell courses and digital products right in our Shopify store. So let's dive in!

Why Shipping Insurance is Essential for E-Commerce Merchants

As e-commerce continues to expand, it's crucial for us to understand the nuances of shipping processes, one of the most critical components in our operations. Shipping insurance serves as a safety net that provides peace of mind for both business owners and customers. Here’s why it’s invaluable:

1. Protection Against Financial Loss

Lost, stolen, or damaged shipments can wreak havoc on our finances. With shipping insurance, we can recoup the value of the merchandise and shipping costs if something goes wrong. This financial cushion can keep our cash flow stable, allowing us to focus on growth instead of getting bogged down by surprise expenses.

2. Enhanced Customer Experience

When we offer shipping insurance, we communicate to our customers that we stand behind our products and care about their shopping experience. This assurance can lead to higher customer satisfaction, increased trust, and ultimately, repeat sales.

3. Streamlined Claim Process

Filing claims can often be cumbersome and time-consuming, especially if we are relying on shipping carriers. With Shopify's integrated shipping insurance via Shipsurance, we can submit claims directly from our Shopify admin, significantly reducing waiting times and administrative burdens.

4. Differentiation from Competitors

In a saturated market, offering shipping insurance can help us set ourselves apart from competitors who may not provide such services. It positions us as a professional, customer-centric brand that prioritizes customer welfare.

How Shipping Insurance Works with Shopify

Understanding how shipping insurance operates within Shopify is essential for effective management. Here’s a simple breakdown of how we can add shipping insurance when purchasing shipping labels:

Eligibility Requirements

To be eligible for shipping insurance through Shopify, we must ensure that:

• Our shipment is shipped from the United States.
• We are purchasing shipping labels directly through Shopify Shipping.
• The products comply with Shipsurance’s Terms of Service.

To qualify for up to $200 USD of included shipping insurance, our store must also have:

• Shopify Payments activated.
• Be on the Grow, Advanced, or Plus plan.

If we are using Managed Markets, the included insurance also applies, yet shops on the Basic plan can purchase insurance separately.

Purchasing Shipping Insurance

Purchasing shipping insurance through Shopify is straightforward. We can insure our shipment when buying shipping labels. Follow these steps to add insurance coverage:

1. Navigate to Orders: From your Shopify admin, click on the Orders section.
2. Select the Order: Choose the order we want to add insurance to.
3. Create Shipping Label: In the Unfulfilled section, click on "Create Shipping Label."
4. Insurance Section: In the SHIPPING INSURANCE section, confirm insurance is included.
5. Add Additional Coverage: If we wish to insure the full shipment value, either select "Insure full shipment value" or enter a "Custom amount" of insurance coverage.

It’s essential to remember that shipping insurance can be purchased in increments of $100, so we may need to round up to accommodate varying order values.

Costs of Shipping Insurance

Understanding the costs associated with shipping insurance helps us budget effectively. The shipping insurance premiums are as follows:

• Domestic shipments: $0.89 per $100 of coverage.
• International shipments: $1.29 per $100 of coverage.

We should also note that USPS First Class Mail is not eligible for insurance, and any shipments sent using UPS to Puerto Rico also do not qualify.

Submitting Shipping Insurance Claims

Inevitably, issues may arise, and knowing how to submit a claim effectively is crucial. Here is how we can go about it:

Steps to File a Claim

1. Access Orders: Log into your Shopify admin and go to the Orders section.
2. Select the Order: Click on the order for which we want to file a claim.
3. Claim Button: Click the "..." button and select "File Claim."
4. Fill in Claim Details: Fill in the relevant details, including the claim type, discovery date, and claim amount.
5. Provide Payout Information: Choose how we want to receive the payout and enter our email address for confirmation.

Claims can typically be submitted 24 hours after shipping, and we have up to 120 days post-shipment to file.

Best Practices for Claims Submission

• Document the Situation: If the package is damaged, take photos.
• Gather Necessary Materials: Include tracking information and proof of shipment along with the claim.
• Prompt Submission: The sooner we file a claim, the more likely we are to receive a timely resolution.

Tevello’s Role in Shipping Insurance and E-Commerce

As we explore the ins and outs of adding shipping insurance on Shopify, it’s vital to recognize how tools like Tevello empower us as merchants. Our all-in-one solution seamlessly integrates with Shopify, allowing us to manage shipping insurance along with digital course creation and community building within a cohesive platform.

Empowering Shopify Merchants

At Tevello, we believe in empowering Shopify merchants to unlock new revenue streams while building meaningful connections with customers. Our focus on user-friendliness means that integrating features like shipping insurance becomes just another opportunity to optimize the shopping experience.

By simplifying the course creation process and enhancing community engagement, we not only expand our business potential but also reinforce customer loyalty.

A Flat-Rate Pricing Model

We take pride in our simple, flat-rate pricing model with no hidden fees, making it easy for us to predict costs and manage our budgets effectively.

If you’re ready to take your business to the next level, consider starting your journey with Tevello and explore our powerful capabilities.

Start your 14-day free trial of Tevello today.

Conclusion

Adding shipping insurance on Shopify is a proactive strategy to protect our businesses from the potentially crippling effects of lost, stolen, or damaged shipments. It not only safeguards our finances but also enhances our customers’ buying experience— an essential element of retaining loyalty in today’s competitive market. As we invest in a seamless shipping experience backed by robust insurance coverage, we position ourselves for long-term success in the e-commerce landscape.

For those looking to simplify the complexities of selling digital products and creating online courses, we at Tevello provide an all-in-one solution tailored to meet our needs. Our commitment to transparency and customer empowerment is at the forefront of everything we do.

To embark on this journey and explore what Tevello can offer your Shopify store, let’s install the all-in-one course platform for Shopify.

FAQ

1. What types of shipping insurance does Shopify offer?

Shopify offers both included shipping insurance (up to $200 for eligible labels) and the option to purchase additional insurance coverage up to $5,000.

2. How can I know if my shipment qualifies for included shipping insurance?

To qualify, your store must have Shopify Payments activated, be on the appropriate plan (Grow, Advanced, or Plus), and the shipment must originate from the U.S. while adhering to Shipsurance’s Terms of Service.

3. What should I do if my package is lost or damaged?

If your shipment is lost or damaged, log into your Shopify admin, select the relevant order, and submit a claim following the outlined process. You're able to file a claim 24 hours post-shipment up to 120 days later.

4. Is it necessary to purchase shipping insurance for all shipments?

While it's not mandatory, purchasing shipping insurance for high-value items is advisable as it protects against potential financial loss from damage or theft. Understanding your product values can help you decide when insurance is essential.

5. Can I integrate additional features for my online store using Tevello?

Absolutely! Tevello provides tools for creating, managing, and selling online courses and digital products seamlessly through your Shopify store, along with community-building features, creating a diverse revenue stream.

Let’s empower our Shopify store's capabilities — together with Tevello, we can innovate the way we sell in the digital landscape!