How SMB’s Can Turn Challenges into Opportunities

The rise in consumer online spending and e-commerce shipping creates both challenges and opportunities for small and medium businesses. With more lost packages, increased porch piracy, louder customer complaints, bad reviews and reimbursement or reshipment hassles, the challenges can seem daunting. But for every challenge SMBs face in today’s digital age, there is even more opportunity to deliver an exceptional customer experience.

The Facts

In a recent study commissioned by UPS Capital, 60% of SMBs reported¹ they had to file an insurance claim due to a shipping mishap the past year. Of those with issues, 63% of SMBs experienced lost or damaged packages and 48% experienced theft after delivery. Unsurprisingly, these types of issues create many challenges for SMBs. Some of the challenges noted include financial loss due to shipping replacement merchandise, lost time managing insurance claims, cancelled orders and negative reviews damaging their reputation.

The Opportunity

Despite these challenges, SMBs have a golden opportunity to deliver an exceptional shipping experience for customers. Quickly providing customers with the service recoveries they deserve leads to a positive customer experience, even when shipments go wrong. Over 70% of SMBs believe that insurance can enable them provide better customer service, with full and fast refunds and repayment for expedited shipping costs, and almost all SMBs surveyed (94%) said they would be willing to pay a fee for shipping insurance that has better coverage and a higher claims approval rate. By making quick and seamless reparations, SMBs will not only delight their customers, but they can boost brand loyalty/their reputation and bolster their bottom line.

The Solution

For SMBs, the ability to restore a customer experience might seem like an overwhelming challenge, but by simply covering their shipments with InsureShield™ shipping insurance by UPS Capital Insurance Agency, Inc., businesses can reship or refund with confidence. And by protecting their packages and the shipping experience, businesses can ultimately protect their reputation and profits, too. Coverage is easily accessible through the UPS Capital^® website, popular platforms and apps like Shopify, or by customizing a solution using the InsureShield™ InstaQuote tool. With a choice of transactional, annual or rules-based coverage, there is a perfect fit for every business model. And, most claims are paid within four days or less² so there’s no burden to your bottom line.

Check out our InsureShield InstaQuote tool to get started on delivering excellence today.

¹ Unless otherwise noted, all figures are based on the 2021 Post-Shipment Experience Study, a compilation of two independent surveys conducted by Evalueserve and Dynata in March and April, 2021, respectively, on behalf of UPS Capital Insurance Agency, Inc.

² Figures are based on aggregate insurance claim payment data collected by UPS Capital Insurance Agency, Inc. during the period of four consecutive fiscal quarters ended March 31, 2021. Individual results may vary.

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