5 Signs Your E-commerce Brand Needs Shipping Protection Support

October 13, 2023
3 mins

Navigating the e-commerce landscape, especially in the realm of shipping, can be a complex endeavor. With the e-commerce channel for B2B product sales projected to exceed $2 trillion by 2024, according to eMarketer, ensuring that your shipping processes are robust and customer-centric is crucial. Here are five signs that your e-commerce brand might need to invest in shipping protection support, with a subtle nod to ShipAid as a potential solution.

Sign 1: Escalating Shipping Issue Resolution Costs

Data: According to a report by, the cost of resolving shipping issues can average up to $75 per incident. With 49% of US consumers experiencing at least one package theft in 2020, according to Rapyd, the financial and reputational stakes are high.

Every time a shipping issue arises – be it a lost package, damaged goods, or a delayed delivery – your e-commerce business incurs costs in resolving the problem. The process of investigating, communicating with customers, and either refunding or resending the order can be resource-intensive. When these costs start escalating, it's a clear sign that your business could benefit from the protective embrace of ShipAid's shipping protection support.

Solution with ShipAid: ShipAid offers peace of mind by handling lost, stolen, and damaged packages, aiming to eliminate order losses and convert extra revenue, thereby safeguarding both customer satisfaction and your financial health.

Sign 2: Increasing Customer Complaints and Negative Reviews

Data: A Brightpearl survey found that 51% of online shoppers have written negative reviews due to delivery issues. Considering that 82% of consumers read online reviews for local businesses, according to BrightLocal, maintaining a positive online reputation is crucial.

Negative reviews, particularly about shipping issues, can deter potential customers and tarnish your brand image. The ripple effect of a single negative review can be substantial, given the interconnectedness and speed of online communication.

Solution with ShipAid: ShipAid provides a self-service resolution portal, enabling customers to report and resolve delivery issues autonomously, potentially reducing the likelihood of negative reviews and enhancing customer empowerment.

Sign 3: Decreasing Customer Loyalty

Data: According to the Customer Satisfaction Index (ACSI), customer satisfaction with e-commerce is on the decline, with a score of 76.3 (out of 100) in 2020. Considering that acquiring a new customer can be five to 25 times more expensive than retaining an existing one, according to HubSpot, efficient customer service is crucial.

A decline in customer loyalty is a significant concern for e-commerce businesses. When customers have negative shipping experiences, they are less likely to return. The costs of acquiring new customers are higher than retaining existing ones. If you're witnessing a drop in repeat business, it's a sign that you need to focus on improving the customer experience, particularly in the realm of shipping, and ShipAid's shipping protection support is the ideal solution.

Solution with ShipAid: Implementing a shipping protection solution like ShipAid can streamline customer service processes by providing a platform for automated resolution of common shipping issues, thereby enhancing customer satisfaction and reducing workload.

Sign 4: A Surge in Lost or Damaged Packages

Data: In 2020, the Pitney Bowes Parcel Shipping Index reported a 40% increase in lost and damaged packages.

A surge in lost or damaged packages is a clear indicator that shipping issues are on the rise. These issues not only lead to financial losses but also erode trust. If you're consistently dealing with a high volume of lost or damaged shipments, it's time to consider proactive measures, and ShipAid's shipping protection support is here to lend a hand.

Why ShipAid: ShipAid's shipping protection support offers a safety net for lost or damaged packages. It ensures that your business doesn't bear the financial burden of these incidents and helps in retaining customers by offering compensation or replacements.

Sign 5: Eroding Profit Margins Due to Refunds and Replacements

Depth of the Issue: If your profit margins are being impacted by the cost of refunds and replacements for lost, stolen, or damaged goods, it’s a glaring sign that your shipping process needs additional protection. This not only affects your bottom line but also can lead to resource allocation issues, affecting other areas of your business.

Statistical Insight: The National Retail Federation estimated that holiday returns alone would total $101 billion in 2020, indicating the financial impact of returns and replacements.

Solution with ShipAid: ShipAid allows businesses to “pay themselves for package protection”, using the funds only when necessary, safeguarding profit margins from being unduly impacted by shipping incidents, and ensuring financial stability.


By recognizing and addressing these signs with strategic solutions like ShipAid, e-commerce brands can navigate through the complexities of the shipping landscape, ensuring customer satisfaction and safeguarding their operational and financial stability.

Ensuring a seamless and transparent shipping experience is paramount in the competitive e-commerce space. Recognizing the signs that your e-commerce brand needs shipping protection support and implementing a robust solution like ShipAid can navigate the challenges of the e-commerce shipping landscape, ensuring that your brand is poised for success and sustainability in the competitive market.

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