Does shipping protection pay for itself?

An optional fee the customer pays at checkout. If the parcel is lost, stolen or arrives damaged, the order is replaced or refunded. Some stores run it themselves (they keep the fee and pay the claims); others use an app that takes a share of the fee or charges a monthly price. Check how your app’s pricing and claim payouts work before entering its numbers.

Break-even fee per protected order = (what protected-order claims cost you + the app’s monthly cost) ÷ protected orders ÷ (1 − the app’s share of the fee). Above that fee the program covers its own claims; below it, you subsidise them.

Your own: lost, stolen and damaged orders as a share of orders shipped over the last few months. Your claims log or helpdesk tags are the best source. The default is only an example. The calculator applies the same rate to protected and unprotected orders, which is a simplification.

Only on orders where the customer opted in, and only to the extent the fee covers the claims. Problems on unprotected orders still land on you, and the calculator shows that line separately. You can still file carrier claims on any parcel; see the claim deadline checker.

No. It’s a cost model. Rules on selling protection or insurance to consumers differ by country and state, so check what applies to your store before launching a program.

Some are. Links marked “affiliate link” are sponsored and StoreVetted may earn a commission at no cost to you. Claimify is our own app and is not an affiliate link.