ShipProtect Studio — Free Interactive In-Browser Studio
Interactive Local Processing Studio
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Supports CSV, JSON, TXT, XML & Log Streams
📊 Step 4 · Processed Output
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Quick Reference & Frequently Asked Questions
Why are self-funded shipping protection programs 75% to 85% net profit margin for ecommerce brands?
When 60%–70% of customers add a $2.95 order protection fee at checkout, 1,000 total store orders generate roughly $1,850 in net fee revenue. Meanwhile, typical lost, damaged, or porch-pirated parcel claims occur on only 1.0% to 1.5% of orders (10 to 15 orders), and replacing those orders only costs your landed unit COGS plus a new shipping label ($20–$30 each, or ~$300 total)—leaving over $1,500 in pure net profit per 1,000 orders.
How much profit do stores lose to third-party shipping insurance apps like Route?
Traditional third-party shipping protection apps collect the entire $2.50–$4.50 fee from your customers and keep 80% to 100% of that premium to underwrite claims. For a Shopify brand shipping 3,000 orders per month, switching from a third-party widget to a self-funded protection model typically unlocks $50,000 to $65,000 per year in retained EBITDA.
Doesn't USPS Ground Advantage, UPS, and FedEx already include $100 of shipping insurance?
Yes! USPS Ground Advantage, Priority Mail, UPS, and FedEx automatically include up to $100 of carrier liability for packages lost or damaged in transit. The only gap standard carrier coverage does not pay for is 'Marked Delivered / Porch Piracy'—which is easily funded by a small fraction of your self-funded order protection pool.
What checkout attach rate should we expect at different shipping protection price tiers?
When priced between 2.5% and 3.5% of cart value ($1.95 on a $65 cart, or $2.95 on a $90 cart), opt-in attach rates typically range between 55% and 72%. Charging above 5% of cart value causes attach rates to drop sharply below 35%.