Is Auto Parts Shipping Protection Worth It? 

Many dealers worry that the potential benefits of shipping protection for car parts don’t outweigh the costs. However, losses generated from unprotected shipments can end up crippling a dealership’s sales. As eCommerce transactions have increased over the past few years, so has the number of packages that have been reported lost or damaged in transit. 

In fact, according to the 2022 Package Theft Annual Report, last year saw more than $2.4 billion in losses due to theft, affecting more than 49 million Americans. On the other hand, 10.7% of returned items in 2022 were found to be fraudulent, costing retailers $22.8 billion. Why were these losses so high? 

When packages are damaged, lost, or stolen, the ultimate decision-making power is left to the parts buyer. They can either decide to re-order the part directly from your dealership and hope for the best, get refunded, or go directly to a competitor to get the exact part for a lower price. Consumers with a lousy shipping and delivery experience are more likely to leave bad reviews and go to a competing auto parts seller. 

More than 60% of businesses cite experiencing increased customer effort as a top factor leading to poor customer satisfaction rates. If claims and support processes are not frictionless for the end buyer, they will quickly pivot to making purchases from another business. 

Shipping incidents like these impact the buyer experience and result in low customer satisfaction, poor brand loyalty, and high customer churn rates that send them straight to your competitors.