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How to reduce chargebacks & complaints with shipping protection

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How to reduce chargebacks & complaints with shipping protection

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shipping protection for eCommerce
What’s this article about?
This blog post explores the top shipping protection providers—like Route, Narvar, and Shopify Protect—comparing their features, integrations, and best use cases. Plus, we break down how shipping protection and payment processing work together to minimize disputes and boost customer trust.

Without a reliable shipping protection solution, businesses risk increased customer complaints, costly refunds, and potential reputational damage. In this article, we’ll explore the top shipping protection providers across Shopify, Wix, BigCommerce, and WooCommerce, compare their features, and highlight why integrating shipping protection with a reliable payment processor like Bankful is essential for a seamless eCommerce operation.

From processing refunds to handling customer complaints, lost and damaged packages can quickly add up to significant losses. Without proper shipping protection, businesses may face:

  • Increased chargebacks, leading to higher processing fees and potential account holds.
  • Lost revenue from refunded or reshipped orders.
  • Damage to brand reputation, reducing customer trust and future sales.

Shipping & Chargeback Cost Statistics

📦 1 in 10 eCommerce packages gets lost or stolen before reaching the customer. (Source: CNBC)

💰 Chargebacks cost merchants up to $3.60 for every $1 lost in a dispute. (Source: Chargebacks911)

🚚 Consumers expect fast, secure shipping, with 84% saying they won’t return to a retailer after a poor delivery experience. (Source: Convey)

Leading shipping protection providers

Several companies specialize in shipping protection, offering different coverage plans, pricing models, and integrations. Here’s a look at some of the top providers in the industry:

1. Route

  • Overview: A widely recognized shipping protection provider offering real-time package tracking, automated claims processing, and carbon-neutral shipping options.
  • ✅ Covers lost, stolen, and damaged items.
  • ✅ Mobile-friendly tracking updates.
  • ✅ Seamless integration with Shopify, BigCommerce, and WooCommerce.
  • Best For: Small to medium-sized eCommerce businesses looking for an all-in-one package protection and tracking solution.
  • Additional Info: Route provides a user-friendly dashboard that allows merchants to monitor claim statuses and ensure a seamless resolution process. The company also focuses on sustainability by offsetting carbon emissions for each shipment, appealing to eco-conscious brands.

2. Narvar

  • Overview: A customer experience-focused shipping protection provider offering branded post-purchase solutions.
  • ✅ Returns and exchanges management.
  • ✅ Proactive shipping notifications.
  • ✅ AI-powered order tracking insights.
  • Best For: Merchants wanting to enhance post-purchase customer engagement and improve retention.
  • Additional Info: Narvar enables businesses to provide a branded post-purchase experience, keeping customers engaged even after checkout. Their AI-powered insights help merchants predict and prevent delivery issues before they escalate.

3. ShipInsure

  • Overview: A simple yet effective shipping insurance solution that integrates with major eCommerce platforms.
  • ✅ Fast claims resolution.
  • ✅ Affordable pricing for both merchants and customers.
  • ✅ Compatible with Shopify and WooCommerce.
  • Best For: Businesses looking for an easy-to-integrate, cost-effective shipping insurance option.
  • Additional Info: ShipInsure prides itself on its quick and hassle-free claims process, allowing merchants to resolve shipping issues efficiently. Its transparent pricing model ensures that businesses of all sizes can afford reliable coverage.

4. Extend Shipping Protection

  • Overview: A protection-focused service that allows merchants to offer customers additional warranty and shipping insurance options at checkout.
  • ✅ Automated claims handling.
  • ✅ Customizable coverage options.
  • ✅ Omnichannel support for merchants.
  • Best For: Large eCommerce brands looking to upsell protection services at checkout.
  • Additional Info: Extend offers white-label protection plans that seamlessly integrate into a merchant’s branding. Their robust API and automation tools ensure a smooth customer experience without additional manual work for merchants.

5. Shopify Protect (Shopify Exclusive)

  • Overview: A built-in protection service for Shopify merchants that offers dispute protection on eligible orders.
  • ✅ Automatically covers chargebacks on eligible transactions.
  • ✅ Integrated seamlessly with Shopify Payments.
  • ✅ No additional cost to merchants for qualifying orders.
  • Best For: Shopify merchants using Shopify Payments who want built-in fraud and chargeback protection.
  • Additional Info: Shopify Protect provides an extra layer of security for merchants by reducing chargeback disputes. Since it’s embedded within Shopify’s ecosystem, merchants don’t need to worry about third-party integrations or additional fees.

6. Shippo Insurance

  • Overview: A multi-carrier shipping solution that offers discounted shipping rates with added insurance protection.
  • ✅ Coverage up to $10,000 for lost, stolen, or damaged packages.
  • ✅ Integration with Shopify, Wix, WooCommerce, and BigCommerce.
  • ✅ Discounted carrier rates with built-in insurance options.
  • Best For: Businesses looking for both shipping discounts and integrated package protection.
  • Additional Info: Shippo Insurance offers merchants access to a network of major carriers, ensuring flexibility and cost savings. Their platform simplifies the claims process, reducing the burden on business owners handling customer disputes.

7. EasyPost Shipping Insurance

  • Overview: A flexible shipping insurance provider that covers lost or damaged shipments across multiple carriers.
  • ✅ Competitive rates for package protection.
  • ✅ Integrates with Shopify, BigCommerce, Wix, and WooCommerce.
  • ✅ Quick claims resolution process.
  • Best For: Merchants who use multiple carriers and want affordable, flexible shipping insurance.
  • Additional Info: EasyPost offers robust API integration, allowing merchants to automate the insurance process for their shipments. Their quick claims resolution ensures minimal disruption to business operations.

Comparison

ProviderCoverageFeaturesIntegrationsBest For
RouteLost, stolen, damagedReal-time tracking, automated claimsShopify, WooCommerce, BigCommerceSmall to medium businesses
NarvarLost, stolen, returnsReturns management, AI trackingShopify, Magento, SalesforceCustomer retention focus
ShipInsureLost, stolen, damagedAffordable, fast claimsShopify, WooCommerceBudget-conscious merchants
ExtendShipping & warranty protectionCustomizable coverage, automated claimsOmnichannel eCommerce brandsLarge businesses
Shopify ProtectChargeback protectionAutomatic eligibility for Shopify Payments usersShopifyShopify merchants using Shopify Payments
Shippo InsuranceLost, stolen, damagedDiscounted rates, insurance up to $10,000Shopify, Wix, WooCommerce, BigCommerceMerchants looking for shipping & protection
EasyPost InsuranceLost, stolen, damagedMulti-carrier support, fast claimsShopify, BigCommerce, Wix, WooCommerceMerchants needing affordable, flexible insurance

Shipping protection & payments

A seamless eCommerce experience extends beyond the checkout process. Here’s how shipping protection and reliable payment processing work together to create a frictionless buying journey:

1. Minimizing Disputes & Chargebacks

When a package is lost or damaged, customers often dispute the charge with their bank. Integrating a shipping protection service can reduce chargebacks by offering a straightforward claims process, reducing merchant liability.

2. Enhancing Customer Trust & Satisfaction

Shoppers are more likely to complete a purchase if they know their order is protected. By providing shipping protection at checkout, merchants can boost conversions and repeat sales.

3. Streamlining Refund & Claims Processing

A reliable payment processor like Bankful helps merchants handle refunds efficiently while a shipping protection provider ensures claims are resolved quickly, leading to better customer experiences.

Shipping protection is a game-changer for eCommerce businesses looking to reduce losses and improve customer loyalty. By integrating a trusted provider like Route, Narvar, ShipInsure, or Shopify Protect with a robust payment processing solution like Bankful, merchants can safeguard their revenue while ensuring smooth post-purchase experiences.

Shipping protection isn’t just an optional add-on—it’s a crucial safeguard for businesses looking to reduce losses, increase customer trust, and prevent disputes. By integrating a reliable shipping protection provider with a seamless payment processing solution like Bankful, merchants can create a more secure, efficient, and customer-friendly operation. Don’t wait until a shipping issue costs you money—take action today to protect your business and keep your customers happy.