Why Self-Funding a $2.95 Checkout Protection Fee Retains 82% Net Profit Margin
When a $75 order is lost or stolen on the porch, you don't lose $75—you reship the order at your $18.50 landed COGS + $6.80 postage ($25.30 total). With a 1.2% parcel loss rate and a 65% checkout attach rate at $2.95, 1,000 orders generate $1,860 in fees against just $304 in reship costs.