The key part of running an internet business or ecommerce store is shipping without delivering the product as promised there won’t be any return customers and there will be an impact on profits.
The greatest risk which is involved in ecommerce is the shipping time in any unfortunate circumstances when the package is lost or damaged the seller has to cope up with the loss.
What is shipping insurance?
When you ship an item or a product it is susceptible to damage or loss this where shipping insurance comes in to play. in a very clear term, the insurance policy will reimburse when your shipment if it is stolen or damaged.
There are many ecommerce businesses which do not have shipping insurance it is highly recommended to have the products you shipped to be insured which will help you with the undue loss in some circumstances.
According to recent statistics, ecommerce business loses up to 3-5% of their profit due to shipping losses.so the right shipping insurance can make your unfortunate situation even better.
Supervise into the shipping insurance.
If you have opted to take out shipping insurance which is a good decision. there are certain aspects of insurance which you should be aware of you can decide which insurance plans suite you the most with your preferred budget and reimbursement rates available.
first of all, analyze your inventory and make sure the items you ship are insurable there are some items which do not come insurance coverage. talk with the agent about these issues get a clear picture of how things would work.
After carefully separating the shipping insurance companies you are interested in reading their terms and conditions will become very handy. analyze if it will go well with the policy you opted for.
foremost you should know the value of the shipment you are sending if the value is negligible then there is no use to insure the product. however, insurance is a must need when you are planning to ship high range products.
What is the insurance coverage?
The term shipping insurance coverage lists various clauses that will be offered in the policy you are interested in. the coverage differs from companies to companies and the policy you are interested in.