Shipping protection glossary
Plain-English definitions for Shopify merchants.
- Attach rate
- The share of orders that add shipping protection: protected orders divided by all orders over the same period.
- Auto-add
- A setting that adds shipping protection to eligible carts by default, leaving the customer free to remove it before paying.
- Carrier liability
- The amount a carrier accepts responsibility for when it loses or damages a package. Without declared value, UPS and FedEx limit it to $100 per package.
- Checkout extensibility
- Shopify's framework for customizing checkout with apps and UI extensions, which replaced checkout.liquid and Additional scripts.
- Claims portal
- A self-serve page where customers report a lost, damaged or stolen order, add details and photos, and track the claim until the store resolves it.
- Declared value
- The value a shipper states for a package to raise the carrier's limit of liability above its default, for an extra fee. UPS and FedEx say declared value is not insurance.
- Delivered-not-received (DNR)
- A claim that a package marked as delivered by the carrier never reached the customer, often caused by misdelivery, a neighbor or theft.
- INR chargeback
- An "item not received" chargeback: the customer asks their card issuer to reverse a payment because they say the order never arrived.
- Loss ratio
- Claims paid divided by protection fees collected over the same period. It shows whether a self-funded protection program pays for itself.
- Opt-in fee
- A charge the customer chooses to add, such as shipping protection offered as an unticked option rather than included in the price.
- Package protection
- Another name for shipping protection: an optional fee shoppers add when they buy so a package that is lost, damaged or stolen gets refunded, reshipped or credited.
- Porch piracy
- The theft of delivered packages from doorsteps, porches or building lobbies after the carrier has scanned them as delivered.
- Post-purchase upsell
- An offer shown after payment, usually on the thank-you page, that lets the customer add something to the order they just placed.
- Proof of delivery
- The carrier's record that a package was delivered, such as a delivered scan with time and location, a delivery photo or a signature.
- Reship
- Sending a replacement order to a customer whose original package was lost, damaged or stolen, instead of refunding them.
- Self-insurance
- Covering your own losses from your own funds instead of buying insurance. In shipping, stores often call this a self-funded protection program.
- Shipping insurance
- Coverage for the value of a parcel while a carrier has it, which reimburses the shipper after a claim with an insurer or carrier if the parcel is lost or damaged.
- Shipping protection
- An optional fee a customer adds at checkout so the store will refund, reship or credit the order if the package is lost, damaged or stolen in delivery.
- Store credit
- A balance a customer can spend at your store, offered instead of a cash refund to resolve a claim or return.
- Thank-you page extension
- A checkout UI extension that shows app content, such as a shipping protection offer, on Shopify's order confirmation page after payment.