So you have decided you want to start offering delivery protection at checkout and generate more profit - congrats! Let's explore different options to help you make an informed decision on how to implement delivery protection
There are two types of delivery protection providers:
Examples: Route, Order Protection, Shipped
These companies provide an insurance product. They keep the revenue generated through upselling delivery protection at checkout. When something goes wrong with a delivery they are responsible for dealing with your customer and accepting/refusing a claim. If a claim is successful they will pay you compensation
Examples: ProtectMyOrder, Navidium, Ship Aid
Self protection is where the merchant keeps the revenue generated through upselling delivery protection at checkout and handles their own claims when something goes wrong. This is completely legal. As a merchant you are simply selling a service rather than insurance
The winner has to be self protection. Yes - we are biased, but one the main reasons we created ProtectMyOrder is because the only merchants who would be better of using the insurance model, are those where their claims are higher than the amount the insurance provider is charging for delivery protection. This is a very rare scenario as the insurance provider will always make sure to charge more than they are having to payout in claims. We therefore believe 99.9% of merchants should be using self protection
Here you have two options:
How to decide which app to use?
Intelligent pricing is an algorithm that split tests different prices and widget designs automatically. The tests balance revenue, opt-in rates and conversion rate to make sure there is no money being left on the table, and that you aren’t charging so much that you are putting them off purchasing.
In order for this feature to work properly merchants need to be doing over £2m per year in revenue, otherwise there is not enough data on which to run tests
Gradual roll out enables you to show the widget to a certain percentage of your website visitors and hide it for the remaining visitors. You can then compare the conversion rate between both cohorts on Google Analytics
If you have any concerns about how your customers will react to delivery protection, or what proportion of website visitors will pay for it, gradual roll out allows you to test delivery protection in a risk free way so you can see the results for yourself
PS. Every time we have have done a gradual roll out with a merchant the conversion rate was higher when customers saw ProtectMyOrder at checkout. More on this here
The resolution portal enables customers to file a claim with the merchant through a dedicated portal. Navidium enables merchants to set rules. For example, “if the parcel has not moved on tracking for 7 days, give the customer an instant refund”
Having spoken to multiple merchants about this feature, our verdict is most merchants don’t want to create extra customer service channels as it adds complexity. Delivery issues are pretty rare so it is easier to ask customers to contact you through your existing customer service channels
As we take 8.99% of the protection revenue, we only have to be 9% better than you and you will make more money letting us take care of everything. For example, if you build this yourself and set the price too low, you are leaving money on the table. If you set the price too high, then you may be causing checkout conversion to suffer.
Our intelligent pricing tool automatically finds the best design and price for your shipping protection policy. We can test hundreds of different prices and designs to find the optimal set up.
We are a team of 4 people who spend 10,000 hours a year optimising shipping protection offerings. We have 70+ brands using our technology with hundreds of thousands of orders processed per month. We're pretty good at this! There's also no upfront cost or headache of instructing your developers to build your own version.
You'll make more money, it'll take you 10 minutes, and there's zero hassle.
If you are a smaller merchant and intelligent pricing is not super important to you then you may want to consider building the widget yourself. Compare the cost of building the widget yourself to the expected fees you’ll have to pay a 3rd party app
If you are a smaller merchant who is happy to set a fixed price for delivery protection (not using intelligent pricing) then you will be best off building your own widget or using a company like Ship Aid or Navidium
Larger merchants, especially those with revenues exceeding £2m, might benefit more from services like ProtectMyOrder, leveraging intelligent pricing for maximum profitability.