Today on the Digital Supply Chain podcast I welcomed Eduardo Lopez Soriano, the Chief Marketing Officer of UPS Capital, to the show to discuss the importance of shipping insurance for small and medium businesses (SMBs). In today’s world where e-commerce is on the rise, shipping insurance is becoming a crucial aspect for SMBs to protect themselves from negative customer experiences and compete with larger retailers.
During the episode, Eduardo explained that UPS Capital is a business unit that provides peace of mind during the shipping process and a seamless post-purchase experience for SMBs. He went on to explain the various ways customers can insure their packages, including setting a universal rule or customizing it to certain carriers or destinations. The option of having the merchant or customer pay for insurance was also discussed. With 69% of customers interested in customising their shipping experience, Eduardo explained that UPS Capital offers SMBs a safety net for their packages and helps protect their reputation with end consumers.
He highlighted that the pandemic has resulted in a significant increase in shipping issues, with 78% more damaged packages and 200% more lost packages. He attributed this to the rise of drop shipping, porch piracy, and the increased use of same-day delivery carriers. He also mentioned that large weather events can cause shipping delays, especially for perishable packages.
Lopez Soriano emphasized the importance of insurance for SMBs as 72% of SMBs have received negative reviews due to shipment issues and 37% of customers say they wouldn’t buy from the SMB again if they had a bad experience. Insurance provides SMBs with a safety net and allows them to respond quickly and positively to customer needs, helping them grow their business.
Eduardo discussed how customer expectations and priorities are changing, with 47% of customers preferring a guarantee of replacement for a damaged package over a two-day delivery. He explained how UPS Capital provides a shipping insurance solution for all carriers, not just UPS, and how it is different from carrier liability. Unlike carrier liability, which only covers the cost of shipment and doesn’t cover porch piracy or weather-related damage, UPS Capital’s Insure Shield offers a faster claims process and is cheaper than carrier liability.
In conclusion, Eduardo re-emphasized the importance of proper management of the customer experience for SMBs to succeed. He encouraged listeners to visit UPSCapital.com for more information on the topics discussed. It was an enlightening and fascinating conversation and I would like to thank Eduardo for joining us on the podcast today.
If you are an SMB looking to protect your business and provide a great customer experience, or if you’re simply interested in learning more about shipping insurance, be sure to tune into this episode of the Digital Supply Chain podcast.
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Photo credit – Cindy Shebley on Flickr