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Providing a great delivery experience extends beyond shipping the package in a timely manner. Customers are increasingly concerned with companies’ return policies and this isn’t just due to items not meeting their expectations. Every day across the US, over 1.7 million packages are stolen or go missing. These lost or damaged shipments lead to unplanned fulfillment costs and a poor shopping experience for customers. In fact, many consumers won’t even shop with a brand if they don’t provide shipping insurance

However, 83% of ShipStation merchants aren't protecting their shipments against theft or loss. Instead, they’re covering these costs themselves. Of the 17% that do protect their shipments, 2/3rds only use carrier-loss protection. Third-party coverage from a provider like ParcelGuard provides the solution for the unknowns that can arise during the delivery process. While shipping insurance can add additional costs, it’s something you can’t afford to not use. Ultimately, a good shipping experience comes down to both you and your customers knowing their shipments are covered. And ShipStation wants to make sure that we’re giving you the best options available for shipment coverage. 

Benefits of ParcelGuard 

ParcelGuard is ShipStation’s new solution for covering parcels against loss, damages, or theft. ParcelGuard protects merchants and customers from the unplanned costs of damaged or lost shipments. Key benefits of the offering include: 

  • Better coverage including damage to branded packages and protection against theft (porch-piracy) for unbranded shipments.
  • Purchase insurance from single postage balance through ShipStation Carrier Services.
  • Coverage for a range of major carriers under a single set of terms that is the same regardless of carrier you ship with. There’s no need to worry about the specific stipulations and restrictions of different carriers’ coverage!
  • A Streamlined claims process through a single online form that is typically resolved within 7 business days (compared to the 15 days it can take most carriers)
  • All this at up to 67% cheaper than carrier coverage.

ParcelGuard Rates

There’s no base fee like you’ll find with carrier coverage. Instead you simply pay one low rate per $100 of coverage for the following carriers: 

  • USPS Domestic: $1.09 per $100 of coverage
  • FedEx Ground® Economy: $1.09 per $100 of coverage
  • All other domestic carrier services (UPS/DHL Express/FedEx/Canada Post/etc): $0.99 per $100 of coverage
  • International carrier services: $1.39 per $100 of coverage


ShipStation remains dedicated to tackling all the problems that could arise during fulfillment and delivery. ParcelGuard is just our newest offering to provide a better solution. 


“At ShipStation, we’re dedicated to making our merchants' shipping processes as efficient and scalable as possible, and insurance is a critical part of the equation,” said Albert Ko, Chief Executive Officer of Auctane, parent company of ShipStation. “With ParcelGuard, we’re upgrading the insurance experience many merchants have become accustomed to by granting them access to streamlined payment and claims processes, as well as competitive carrier coverage rates. With ParcelGuard, merchants are better equipped to tackle unplanned costs caused by package loss or damage and improve delivery experiences.”

Learn more about ParcelGuard here!