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For retailers and e-commerce brands, the rise of online shopping has proven to be a double-edged sword. Revenue growth is huge — US e-commerce sales are designed to reach $1.1 trillion by 2029 — but with that growth comes a growing threat: “front porch piracy.”
Only in 2023 this crime had an impact a staggering 76% of Americansand the thieves stole an estimated 119 million packages from thresholds of value 8 billion dollars.
While financial losses hurt, the erosion of consumer confidence is deeper. According to Penn Elcom Global Parcel Theft Report, 1 in 5 internet buyers expresses concern about theft of packages and 1 in 10 people are reluctant to shop online for fear of theft, making secure delivery crucial to protecting profits and brand popularity.
For e-commerce leaders, protecting the last mile requires a multi-pronged approach that mixes strategic solutions with operational vigilance. With that in mind, here are three tactics e-commerce leaders need to implement.
Offer insurance at checkout
When it comes to shipping, consumers aren’t just looking for basic insurance—they need reassurance from brands they trust. A whopping 76% of shoppers say they’d buy shipping insurance if it was offered during checkout on their favorite brand’s website, according to Retail Protection ReportThey are even willing to pay up to a 21% premium for this integrated, seamless shipping experience from brands.
This variety of offer provides peace of mind that their purchase, especially for expensive electronics and luxury goods, is fully protected from start to finish. Think about it—when a customer spends money on a $2,000 home theater system or even a $5,000 piece of jewellery, they are making an emotional investment. There is an expectation that their prized purchase will arrive safely and an assumption that the seller has taken every precaution to secure its delivery.
This is where integrated third-party shipping protection gives brands a significant competitive advantage. Most carrier insurance policies have strict limits and long lists of exclusions that completely cover expensive electronics, collectibles, and other high-priced items.
For retailers, building insurance into the checkout experience elevates customer support while reducing the operational costs of reshipments and exchanges. Simply put, it’s a smart investment that keeps customers coming back. In today’s competitive e-commerce environment, integrated shipping protection is a revenue-generating differentiator that drives customer loyalty and lifetime value.
Ensure flexibility of supply
In today’s era of quick gratification, consumers expect not only real-time visibility into an order’s progress, but also the ability to control delivery from the last mile. As real-time tracking of shipments becomes the industry norm, providing delivery flexibility that adapts to customers’ schedules stays an underappreciated—and neglected—tool for today’s consumers. Interestingly, e-commerce consumer sentiment survey 2024 found that 76% of respondents considered the ability to track a shipment to be “extremely important.”
Today’s customers—whether or not they shop frequently or spontaneously—appreciate the ability to:
- Change the date or route of deliveries to trusted neighbors if they are unavailable
- Identify protected alternative pick-up locations, akin to work areas or even secure delivery lockers
- Provide options for customers to share shipping notes with hidden instructions or access codes
Giving customers more control reduces the risk of package damage and the fear of theft. It’s also an easy way to improve the overall delivery experience and perception of your brand.
Porch Piracy Policy Implementation
Nearly half of Americans have been victims of porch piracy at some point in their lives, 44 million people reported parcel theft just in the last three months. To get ahead of the problem, having a tight anti-piracy policy and internal protocols is key to protecting your bottom line from the scourge of package theft.
First, clearly define what constitutes porch piracy and specify which items are covered by your policy, especially high-value items like electronics, jewelry, and other luxury items that are often targeted by thieves. Make sure your claims process is quick and user-friendly, with options like an online portal and mobile app. Fast, fair resolutions when something goes improper can turn a negative experience into a positive one — 87% of buyers I might recommend the brand after good interaction with the criticism.
Educating customers about the risks of porch piracy and preventative measures is key. Use social media, email newsletters, and in-store signage to share this information. Provide detailed guides and answers to steadily asked questions about purchasing insurance and filing claims, in addition to video tutorials for higher understanding.
Encourage preventive measures akin to using secure drop-off points or delivery lockers, rescheduling deliveries, or redirecting packages to trusted neighbors. Promote delivery notifications and real-time tracking services to keep customers informed.
Integrate with delivery and e-commerce platforms for seamless insurance options and real-time tracking. Leverage technology to predict high-risk areas and automate policy creation, pricing, and claims processing to increase efficiency.
A powerful anti-piracy policy signals that you just support your customers and prioritize secure delivery. When combined with checkout insurance and delivery flexibility, you create a secure ecosystem that elevates customer support, protects profits, and strengthens brand popularity.