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ABOUT e-commerce retailers and brands, the rise of online shopping has been a double-edged sword. The upside is huge – US e-commerce sales are designed to reach $1.1 trillion by 2029 – however, the growth comes with a growing threat: “porch piracy”.
Only in 2023 this crime affected one an astonishing 76% of Americanswith thieves kidnapping an estimated 119 million packages from the thresholds of the door of value 8 billion dollars.
As financial losses hit, the erosion of consumer confidence cuts deeper. According to the Penn Elcom Global Parcel Theft report, 1 in 5 online shoppers expresses anxiety about the theft of the package and 1 in 10 hesitate to shop online due to fear of theft, making secure shipping mission critical to protecting profits and brand reputation.
For e-commerce leaders, securing the last mile requires a multifaceted approach that combines strategic solutions and operational vigilance. With that in mind, here are three tactics ecommerce leaders should implement.
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Offer insurance at checkout
In transportation, consumers aren't just looking for basic insurance — they want reassurance from brands they trust. According to Retail Protection Report. They are even willing to pay up to 21% premium for this seamless integrated shipping experience from brands.
This type of offer provides peace of mind that their purchase, especially high-value electronics and luxury goods, is fully protected end-to-end. Think about it – when a customer spends on a $2,000 home theater system or even a $5,000 piece of jewelry, they're making an emotional investment. There is an expectation that their prized purchase will arrive safely and an assumption that the retailer has taken every precaution to defend its surrender.
This is where integrated third-party shipping protection gives brands a significant competitive advantage. Most carrier insurance policies have strict limits and long lists of exclusions that leave expensive electronics, collectibles, and other big-ticket items completely exposed.
For retailers, including insurance at checkout enhances the customer experience while reducing the operational costs of returns and replacements. Simply put, it's a smart investment that keeps customers coming back. In today's competitive e-commerce landscape, integrated shipping protection is a revenue-generating differentiator that drives customer loyalty and lifetime value.
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Provide delivery flexibility
In today's era of instant gratification, consumers don't just wait real-time visibility in the journey of their order, but they also expect the ability to control last-mile delivery. While real-time package tracking becomes an industry norm, offering delivery flexibility that accommodates customers' schedules remains an underutilized—and overlooked—tool for today's consumers. In particular, a 2024 survey of consumer sentiment in e-commerce found that 76% of respondents ranked the ability to track their delivery as “extremely important.”
Today's buyers – whether they are frequent buyers or impulse buyers – value the ability to:
- Reschedule or redirect deliveries to trusted neighbors if they will be far away
- Specify alternative secure delivery locations such as workplaces or even secure delivery lockers
- Provide options to allow customers to share delivery notes with secret instructions or access codes
Giving customers more control reduces package vulnerability and theft anxiety. It's also an easy way to elevate the overall delivery experience and perceptions of your brand.
Enforce a porch piracy policy
Nearly half of Americans have been victims of portal piracy at some point, with 44 million who report a stolen package just in the last three months. To cut to the chase, having an airtight piracy policy and internal protocols is essential to protecting your bottom line from the blight of packet theft.
First, clearly define what constitutes porch piracy and outline what items are covered by your policy, especially high-value goods like electronics, jewelry, and other luxury products that are often targeted by thieves. Make sure your claims process is fast and user-friendly, with options like a web portal and a mobile app. Quick and right solutions when things go wrong can transform a negative experience into a positive one – 87% of buyers would recommend a brand after a good claim interaction.
Educating customers about the dangers of porch piracy and preventative measures is vital. Use social media, email newsletters and in-store signage to share this information. Provide detailed guides and FAQs on buying insurance and filing claims, along with video tutorials for better understanding.
Encourage preventative measures, such as using secure delivery locations or drop-off lockers, rescheduling deliveries or redirecting packages to trusted neighbors. Promote delivery notifications and real-time tracking services to keep customers informed.
Integrate with distribution and e-commerce platforms for seamless insurance options and real-time tracking. Use technology to predict high-risk areas and automate policy creation, pricing and efficiency claims processing.
A strong front-end piracy policy signals that you've got your customers back and prioritize delivery security. When combined with checkout insurance offers and delivery flexibility, you create a secure ecosystem that enhances the customer experience, protects profits and enhances brand reputation.