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Guide

Warranty vs Shipping Protection: What Shopify Stores Need

TL;DR

A warranty covers the product itself: defects and failures after it arrives. Shipping protection covers the delivery: lost, stolen or damaged packages. Extended warranties are separate paid service contracts. Most Shopify stores need clear warranty terms for what they sell and optional shipping protection for delivery problems; they solve different risks.

A warranty covers the product: defects and failures after it arrives. Shipping protection covers the delivery: a package lost, stolen or damaged on the way. They solve different risks, so the question is rarely “which one” and usually “how do I offer each one clearly”.

This guide explains the difference, the basics of US warranty rules, extended warranties, and how to present both on a Shopify store. For the delivery side in depth, see our shipping protection guide.

What is the difference between a warranty and shipping protection?

WarrantyShipping protection
What it coversDefects or failures of the productLost, stolen or damaged deliveries
When it appliesAfter the product arrives, for a set periodFrom shipping until delivery (and theft after delivery, if your rules say so)
Who paysIncluded in the price (extended warranties cost extra)The customer, as an optional fee
Typical resolutionRepair, replacement or refundRefund, reship or store credit
Who handles itThe store, the brand or a warranty providerThe store (self-funded) or a protection provider

A package that arrives smashed is a delivery problem. A product that stops working after three months is a warranty problem. Customers mix them up, so your policies should say clearly which is which.

What do US warranty rules say?

The FTC’s guide to federal warranty law covers the basics for US sellers. In short:

  • A written warranty is optional. The FTC says the law “does not require any business to provide a written warranty”. If you offer one, you must follow the rules for it.
  • Full or limited. A written warranty on products over $10 must be labeled “full” or “limited”. A full warranty meets federal minimum standards, such as free repair or replacement; a limited one does not.
  • Disclosure. For products over $15, the warranty terms must be available to shoppers before they buy, which online means on or near the product page.
  • Implied warranties. State law creates unwritten promises from sellers, such as that a product works as intended. They can apply even if you offer no written warranty.

This is a summary, not legal advice. Check the FTC guide and your state’s rules, and the rules of any country you sell to.

What is an extended warranty?

What stores sell as an “extended warranty” is usually a service contract in the FTC’s terms: a separate agreement that costs extra or is sold after the purchase. It typically lengthens the cover period or adds accident protection.

On Shopify, extended warranties are usually sold as an add-on at the product page or cart, often through a warranty app or a third-party provider. Before you offer one:

  • Decide who carries the risk: your store or a provider.
  • Check the rules that apply to service contracts where you sell; they can differ by state.
  • Price it from your real failure rate, just as you would price shipping protection from your claim rate.
  • Keep it optional and clearly separate from the product price.

How do you offer a product warranty on Shopify?

You do not need an app to start:

  1. Write your warranty terms: what is covered, for how long, what is excluded, and how to claim.
  2. Label it “full” or “limited” if you sell in the US and the product costs over $10.
  3. Show it before purchase: a link or short summary on the product page, plus a dedicated warranty page.
  4. Make claims easy: a form or email address, with the order number and photos.
  5. Track claims by product so you can spot quality problems early.

Add a warranty or registration app later if you need product registration, automated claims or extended-warranty sales.

How do warranty and shipping protection work together?

Treat them as two separate promises and keep the language clean:

  • At checkout, offer shipping protection for delivery problems. Call it shipping, package or order protection, not a warranty.
  • On the product page, show your warranty terms for product problems.
  • In your claims process, route each case to the right policy. A damaged arrival goes through protection; a later fault goes through the warranty.

With Sam Shipping Protection, delivery claims run through your own claims page and you keep the protection fee. For the delivery-side playbook, see the order protection guide. To compare protection with insurance, see shipping insurance vs shipping protection.

Frequently asked questions

Is shipping protection a warranty?

No. Shipping protection covers problems with the delivery: a lost, stolen or damaged package. A warranty covers problems with the product after it arrives, such as a defect or early failure.

Do I have to offer a warranty on Shopify?

In the US, the FTC says federal law does not require any business to provide a written warranty. If you do offer one, you must follow the rules for it, and implied warranties under state law can apply even without a written one.

What is the difference between a warranty and an extended warranty?

A warranty comes with the product and is included in the price. What is often sold as an extended warranty is, in the FTC's terms, a service contract: a separate agreement that costs extra or is sold after the purchase.

Can I offer a warranty and shipping protection together?

Yes. They cover different risks, so many stores offer both: warranty terms for the product and an optional protection fee at checkout for the delivery.

Sources

  1. FTC: Businessperson's Guide to Federal Warranty Law

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