What is a Delivery Guarantee? The Ultimate Shipping Insurance & Protection Guide

August 11, 2023
4 mins

Shipping products worldwide can be a daunting task for e-commerce businesses. From the fear of goods getting lost or damaged in transit to the anxiety customers experience when their package doesn't arrive on time, the entire process can sometimes feel like a gamble. Enter shipping insurance and delivery guarantee—the dynamic duo that's changing the game for online businesses and consumers alike. Today, let's delve deep into the concept of a delivery guarantee from the perspective of ShipAid, your trusted partner in shipping protection.

What is a Delivery Guarantee?

At its core, a delivery guarantee is an assurance that your package will reach its destination safely and punctually. If for any reason, your shipment encounters problems like being lost, damaged, or stolen, a delivery guarantee ensures that appropriate actions will be taken to resolve the situation. These solutions can range from reshipping the product, refunding the customer, or, in some unique situations, denying the claim.

Why ShipAid's Delivery Guarantee Matters

  1. Boosted Customer Confidence: When your customers know they are protected by shipping insurance, their trust in your brand solidifies. The peace of mind knowing that they won't be left in the lurch if their package goes missing is priceless.
  2. Opens Revenue Streams: Data at ShipAid suggests that customers are more than willing to pay a slight premium for the assurance that their packages are protected. On average, businesses partnering with ShipAid see an extra monthly revenue of $1,522 with a whopping 73% average conversion rate.
  3. Autonomy & Control: Traditional shipping insurance options often leave businesses at the mercy of carriers who can be slow to resolve issues or might deny claims. ShipAid's delivery guarantee allows for in-house, swift resolution, maintaining brand integrity and ensuring customer satisfaction.

Real-life Scenarios with ShipAid

  • Scenario 1: Imagine you're an e-commerce store that deals in fragile, handcrafted glassware. A customer from across the country orders a bespoke piece. However, upon delivery, the customer discovers the item shattered. With ShipAid's delivery guarantee in place, you can immediately offer a replacement or refund, saving your brand reputation and ensuring customer loyalty.
  • Scenario 2: You run a niche online bookstore. A loyal customer pre-orders a limited edition, eagerly awaiting its arrival. But the package gets lost in transit. Thanks to the shipping protection, you can quickly reship the item, turning a potential negative experience into a positive one.

Statistics Speak Louder

  • 82% of orders for a unique gift box company were guaranteed, ensuring that a significant majority of their shipments were protected against unforeseen issues.
  • A business dealing in top-notch coffee-making products reported an additional $1,523.35 in monthly revenue purely from leveraging ShipAid's guarantee.
  • Another company dealing in delicate cosmetics streamlined their customer service, saving thousands, all while providing impeccable service and assurance to their customers.
  • Growing Reliance on E-Commerce: According to Statista, in 2021, over 2.14 billion people worldwide purchased goods or services online, up from 1.66 billion global digital buyers in 2016. This increasing dependence on online shopping heightens the need for reliable delivery and protection mechanisms.
  • Shipping Concerns are Real: A recent survey revealed that 1 in 4 online shoppers has experienced a lost or stolen package in the last year. This statistic highlights the tangible need for delivery guarantees, ensuring both businesses and consumers are protected.
  • The Cost of Lost or Damaged Goods: The National Retail Federation found that U.S. retailers lose billions annually due to cargo theft. This doesn't even account for the indirect costs related to customer service overheads, brand reputation damage, and lost customers.
  • Impact on Customer Loyalty: A study by Convey found that 98.1% of consumers believe that delivery impacts their brand loyalty. An efficient delivery guarantee system ensures that, even when issues arise, the relationship with the customer remains strong and trust isn't eroded.
  • Willingness to Pay for Assurance: E-commerce shipping and insurance data consistently show that a significant number of customers are willing to pay a premium for the added assurance that their package will arrive safely. For instance, ShipAid found that over 70% of customers opt-in to their delivery guarantee offer across hundreds of stores.
  • Effect on Conversion Rates: Shipping options have a direct correlation with conversion rates. Baymard Institute found that 60% of online shoppers abandoned their carts due to unsatisfactory delivery options. Offering comprehensive shipping insurance and delivery guarantees can be the differentiation factor that pushes a potential customer to complete their purchase.
  • Rising Shipping Expectations: A report by PwC indicates that 88% of consumers are willing to pay for same-day or faster delivery. As shipping speeds increase, so does the complexity and risk in the logistics chain, underscoring the importance of robust shipping protection.
  • Impact on Repeat Purchases: Narvar reported that 69% of consumers are less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the expected delivery date. This highlights the critical role delivery guarantees play in ensuring customer retention and repeat business.


In today's fast-paced e-commerce landscape, where on-time and safe delivery is a significant part of the customer experience, a delivery guarantee is not just an add-on but a necessity. With ShipAid's unique approach to shipping protection and insurance, businesses can provide an extra layer of assurance to their customers, enhancing brand loyalty, streamlining operations, and even opening new avenues for revenue.

As Nikki Smith, Founder of Nikki Smith Designs, aptly puts it, "ShipAid is a way to pay yourself for package protection & use that money only when you need it!" It's time to take control of your shipping, guarantee the best for your customers, and ensure that every order is a success story. With ShipAid, shipping happens, but so does unparalleled protection.

Similar posts

Read, Protect, & Prosper

Start for free ($0/mo), No strings attached

Protect Your Shipments & Boost Your Profits, It's That Simple.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Free Expert Installation
Cancel anytime