Shipping insurance that protects shipped packages can be addressed by online store owners in a number of ways.
It can be provided by the seller or requested by the buyer as needed or requested.
In the case of the latter, retailers should understand the difference between opt-in delivery protection and opt-out delivery protection and how they wish to offer this service to their customers.
What Is Opt-In Delivery Protection?
Opt-In delivery protection is a type of shipping insurance where the buyer must opt-in by clicking a tick box in the shopping cart checkout confirming that they wish to add insurance to their purchase.
It usually means adding a small value-based fee to the shopping cart, then registering the customer and their purchase with whatever third-party insurance provider the retailer is working with.
Since this is an added service at an added fee, many online sellers will offer it but give the customer the choice to opt-in if they wish to utilize this service by paying the fee.
It is neither recommended nor not recommended by the seller and is fully up to the buyer.
What Is Opt-Out Delivery Protection?
Opt-out delivery protection is shipping insurance that works almost the same way except in this case the buyer has to actually decline the shipping insurance and the added fee by unchecking the opt-in box or checking an opt-out box.
Offering opt-out service suggests that the retailer recommends that buyers pay a small fee to insure their deliveries and that by opting out, the buyer is assuming responsibility for any damaged or unreceived items or whatever the seller’s terms are.
Opt-In and Opt-Out Delivery Provide Customers With Choice
The purpose of both opt-in delivery protection and opt-out delivery protection is to protect both the buyer and the seller against the issue of damaged or lost shipments.
Both give buyers the choice to keep the extra protection or waive it, but in different ways.
While most online stores tend to use opt-in delivery protection the most, opt-in third-party protection may be preferable by the seller in certain instances depending on their shipping replacement policies.
Merchants Must State Who Is Responsible For Shipping Issues
In either case, businesses should clearly state what responsibility they are willing to assume for missing or damaged packages when either opt-in or opt-out shipping insurance is declined by the buyer.
Policies on the return and replacement of damaged or unreceived items, payment of additional shipping costs, and other rules should be clearly posted and act as encouragement for buyers to opt-in and protect their shipments.