Package protection is a small, optional fee your customers add when they buy, so their order is covered if the package is lost, damaged or stolen. If something goes wrong, your store refunds, reships or gives store credit. On Shopify, an app adds the fee to the order as its own line item and gives customers a way to file a claim.
“Package protection”, “shipping protection” and “order protection” describe the same thing. This guide focuses on the parts merchants ask about most: the fee, the widget and the app. For the full model, read our shipping protection guide.
How does package protection work on Shopify?
Here is what happens behind the scenes:
- The app creates a protection product. Shopify carts only hold products, so the fee needs one. You rename it and hide it from your storefront.
- The widget offers it. A toggle on the cart, cart drawer, checkout (Shopify Plus) or thank-you page shows the price and what it covers.
- The customer opts in. The protection product is added to the cart at the price your rules set.
- The order is placed. The fee is a separate line item, so it is easy to report on and refund.
- A claim comes in. The customer files it through your claims page, and you (or the provider) refund, reship or credit the order.
What is a package protection fee?
The package protection fee is what the customer pays for the cover. Most stores use one of three pricing models:
- Flat fee, the same on every order.
- Percentage of the order, often with a minimum and maximum.
- Price bands, a set fee for each cart-value range.
The right price starts from your own numbers: the share of protected orders that end in a claim, multiplied by the average cost to resolve one. Our guide on how much to charge for shipping protection walks through the math, and the shipping protection calculator runs it for you.
Who keeps the package protection fee?
That depends on the app, and it is the biggest difference between them.
- Self-funded apps let you keep the fee and pay claims yourself. The fee becomes revenue.
- Provider-funded apps keep the fee and pay claims for you. You earn nothing from it, but you handle fewer decisions.
Here is how some of the most-installed package protection apps compare. Data comes from each Shopify App Store listing.
| Sam Shipping Protection | Navidium | Simply Shipping Protection | ShipAid | Seel | ShipInsure | |
|---|---|---|---|---|---|---|
| App Store rating | 4.9★ (107) | 4.7★ (396) | 4.6★ (131) | 4.8★ (25) | 4.9★ (296) | 4.7★ (66) |
| Who keeps the protection fee | Self-funded: you keep the fees | Self-funded: you keep the fees | Self-funded: you keep the fees | Self-funded: you keep the fees | Provider-funded: the app keeps the fees | Provider-funded: the app keeps the fees |
| Share of fees you keep | 100% | 100% | 100% (no revenue share stated) | 91% | Not published | Not published |
| App cost | Starter Free · Standard $9/month · Plus $29/month | Free up to 50 orders/mo, then $29.99 (500), $49.99 (1,000), $99.99 (unlimited) per month | Free tier, then $4.99 (50 insured orders), $19.99 (200), $49.99 (500) per month | 9% of Shipping Guarantee Revenue earned using the app | Free to install | Free for merchants |
| Built for Shopify |
For a wider comparison with costs at different order volumes, see Route alternatives.
What should you look for in a package protection app?
Check these before you install:
- Fee ownership: do you keep 100%, a share, or nothing?
- Plan cost at your volume, including order caps.
- Placements: cart, cart drawer, checkout and thank-you page.
- Pricing rules: flat, percentage with min/max, price bands.
- Claims tools: a branded claims page, photo uploads, partial refunds, store credit and reorders.
- Housekeeping: auto-fulfilling the protection item, hiding it from your catalog, and excluding pick-up orders.
- Reviews and Built for Shopify status.
How do you design a package protection widget that customers use?
The widget does most of the work. Keep it clear and honest:
- Say what it covers in one line: “Protect my order from loss, damage and theft”.
- Show the price next to the toggle, not in small print.
- Put it where customers decide: next to the subtotal in the cart or cart drawer.
- Keep it to one tap to add or remove.
- Match your brand: colors, icon and wording that look like part of your store.
- Link your policy so customers can see the rules before they pay.
If you pre-select protection, make the fee visible before payment and let customers remove it in one click. That keeps it clearly optional, which matters under hidden-fee rules such as California’s SB 478.
How do you keep the protection product out of your storefront?
Because the protection fee is a product, it can appear where you do not want it. Fix that once:
- Rename it to “Order Protection” or “Package Protection” and add your own image.
- Hide it from collections by excluding its product type in your collection conditions.
- Hide it from search with a product metafield your theme respects.
- Hide it from related products with a small theme edit.
Sam’s user guide shows each step for its protection product. Other apps have similar guides.
How do package protection claims work?
Set the rules before your first claim:
- What is covered: lost in transit, damaged on arrival, stolen after delivery.
- The filing window, for example 30 days from delivery.
- Evidence: photos of damage and packaging, and a short description.
- Resolution: full or partial refund, store credit, or reorder.
- Limits: how many claims one customer can file, to reduce abuse.
A self-serve claims page keeps all of this in one place. Customers enter their order email and number, describe the problem and attach photos. For the full playbook on lost, stolen and damaged orders, see the order protection guide. To set it up on your store, start with how to add shipping protection to Shopify or go straight to Sam Shipping Protection.
Frequently asked questions
What is a package protection fee?
It is a small optional charge a customer adds at checkout so the store will refund, reship or credit the order if the package is lost, damaged or stolen. With a self-funded app the store keeps the fee; with a provider-funded app the provider keeps it.
Is package protection the same as shipping protection?
Yes, for practical purposes. Package protection, shipping protection and order protection are names for the same idea: an optional fee that covers delivery problems. Apps and stores use whichever name their customers understand best.
Why does package protection show up as a product?
Shopify carts can only hold products, so protection apps create a product for the fee and add it to the order as a line item. Rename it to something clear like "Order Protection" and hide it from collections and search.
How do I get more customers to add package protection?
Show it where customers decide (cart or cart drawer), say plainly what it covers, show the price, and keep it to one tap. Test placement and wording before you test a lower price.
Should package protection apply to store pick-up orders?
No. Protection covers shipping, so remove it from pick-up orders. Sam includes a checkout rule that blocks protection when a customer chooses pick-up.