How eCommerce brands can prevent package theft
The story of my stolen Speedgoats
They were delivered! It’s a Tuesday afternoon and, while I’m sitting at my desk in the Rush Order HQ office, my front door Ring camera alerts me to a FedEx delivery of my new Hoka Speedgoat running shoes. I can’t wait for my upcoming weekend trail run with my new kicks!
But wait, what’s this!? Not two minutes after the FedEx truck departs, the Ring camera clearly shows another vehicle parking along the curb out front. A passenger exits the front door of the small unmarked SUV wearing an official-looking Amazon delivery driver vest. Another delivery!? Did the fancy new Rivian Amazon delivery vehicle break down and the driver was forced to use his own personal vehicle today?
Sadly, no. This “gentleman” is not there to deliver anything. He confidently strides (rudely across my front lawn, I might add) up to my front door and snatches my Speedgoats right off the landing. He then returns to what is now clearly the getaway vehicle and speeds out of view.
We all know how this episode ends… I report the incident and upload video footage for the local police. And, hoping to be a good neighbor (and admittedly out of spite), I post the video footage of this evil man stealing the package from my front porch in broad daylight to NextDoor. Neighbors reply with comments reporting similar episodes, lamenting the current state of the world and how our small town “isn’t what it used to be”. We eventually tire of our own rants and go back to our daily lives, perhaps a bit more vigilant and certainly more jaded by the event.
I also contacted the retailer to see if they could offer any relief, knowing full well the loss of my new shoes was not their fault. I give an honest account of the event and, thankfully for me, the retailer fully refunds my purchase.
While this is indeed fantastic customer service, I mourn for the small hit to the company’s P&L and wonder what advice Rush Order should be giving to its clients to help navigate these difficult porch theft situations. And, so, let’s begin…
Porch pirates are the worst - for your brand
As e-commerce continues to expand its share of the retail market, so does the problem of those evil porch pirates—thieves who steal packages from doorsteps after the are delivered.
For online retailers, this growing threat of package theft can have a significant impact on customer satisfaction, brand loyalty, and operational costs. Understanding how to prevent package theft is now a critical focus for ecommerce brands who want to protect their customers and ensure smooth, secure delivery experiences.
In this post, we’ll explore the challenge of porch pirates and the various ways brands can mitigate the risk of package theft. We’ll dive into fulfillment processes and customer support strategies, addressing key questions like whether to require signatures for deliveries, how to approach shipping insurance, and how to handle customer claims of stolen packages.
By proactively addressing these issues, brands can reduce the financial impact of porch piracy and deliver a better overall experience for their customers.
1: Understanding Porch Theft: Why It Matters for eCommerce
In the U.S. alone, estimates suggest that 44% of Americans have had a package stolen at some point, with 17% reporting thefts in the past three months. This surge in porch pirate activity is largely driven by the convenience of doorstep delivery, which obviously leaves packages vulnerable to theft.
The financial implications of package theft are predictably staggering as well.
For ecommerce businesses, porch pirates represent more than just lost inventory. Replacing stolen items and managing customer complaints can severely damage a brand’s reputation and drive additional indirect expenses. In fact, 49% of consumers say they’re concerned about their packages being stolen, which can lead to hesitant ecommerce purchasing behavior or a preference for more secure shopping methods, such as in-store purchases or pickups instead.
As porch piracy continues to rise, understanding how to prevent package theft is becoming crucial for ecommerce brands. By implementing better fulfillment strategies and proactive customer support, businesses can mitigate financial losses, protect their reputation, and maintain customer trust.
2: Signature-Required Deliveries: Pros and Cons
One of the most direct ways to preempt porch pirates and reduce the risk of package theft in general is by requiring a signature upon delivery. While this method can provide additional security, it's important for brands to weigh both the benefits and potential drawbacks. Let’s dive into the pros and cons of signature-required deliveries.
Pros of Signature-Required Deliveries
Reduced Risk of Porch Theft
Requiring a signature ensures the package is only handed over to the recipient, eliminating the possibility of it being left unattended and vulnerable to porch pirates. When a signature is required, the courier must either deliver it directly to the customer or schedule a re-delivery if no one is available. This adds an extra layer of protection for high-value or sensitive shipments.
Liability Protection for Brands
When a signature is required, e-commerce brands have clearer proof the package was delivered to the rightful recipient. This minimizes disputes over whether the package was actually received. If the signature confirms delivery, the responsibility shifts to the customer to safeguard the package once it’s handed over, potentially reducing erroneous claims for refunds or replacements.
Cons of Signature-Required Deliveries
Customer Inconvenience
One major downside of requiring signatures is that it can be inconvenient for customers, especially those who aren’t home during typical delivery hours. A missed delivery often results in delays, frustration, and the need for redelivery attempts or trips to the local courier office (e.g. FedEx Office, UPS Store, or Post Office), which can impact customer satisfaction.
Example: A customer orders a holiday gift, expecting it to arrive on time for a special event. Because they weren’t home to sign for the delivery, the package is sent back to the distribution center for re-delivery. The customer now has to wait another day or two for their gift to arrive, potentially missing their deadline. This inconvenience could lead to a negative review or even a canceled order or return.
Added Costs and Delivery Delays
Requiring a signature can also lead to higher costs for both the business and the customer. Couriers often charge extra for this service. As of this writing in 2024, FedEx and UPS charge an additional $6.75 per shipment for the signature requirement! Ouch!
Also, failed delivery attempts can result in multiple trips to the customer’s address, increasing shipping expenses. And, it can slow down the delivery process, as packages may take longer to reach their final destination due to missed delivery windows.
Limited Flexibility for Customers
Some customers prefer the flexibility of receiving packages without needing to be home. With signature-required delivery, they lose the ability to have items conveniently left at their doorstep, mailbox, or other designated spots. This limitation can be especially frustrating for individuals who live in secure buildings or gated communities where porch pirates are less of a concern.
Example: A customer living in a secure apartment complex may find it cumbersome to sign for a package. Their building already has a concierge or locker system in place for safe delivery, but the business insists on a signature. As a result, the customer is forced to coordinate a specific time to be home, which could have been avoided if the package were simply left in their building’s secure mailroom.
Balancing Security with Customer Experience
Ecommerce brands must carefully consider whether the added security of requiring signatures outweighs the potential drawbacks for their specific customer base. For high-value or sensitive items, requiring a signature may be a non-negotiable necessity. However, for lower-cost items or non-urgent deliveries, the extra step may be seen as an expensive hassle.
Offering signature-required deliveries as an optional service can be a middle ground and we’ve seen this well executed by a few brands over the years. Customers who are concerned about porch pirates can opt-in, while those who prefer the convenience of doorstep delivery can decline the added layer of protection.
Ultimately, the decision to require a signature should be based on balancing the need for security with maintaining a smooth, positive customer experience.
3: Customer Support Strategies to Address Porch Theft
Re-Shipping Policies: When to Re-Ship and When Not To
Handling porch pirate incidents requires a delicate balance between maintaining customer satisfaction and preventing potential fraud. Should an e-commerce brand re-ship an item every time a customer claims package theft occurred? The answer lies in creating a flexible yet structured policy based on key factors like the frequency of theft reports, the value of the item, and possibly the customer's purchase history.
For example, if a high-value customer reports their first stolen package, it might be in the brand’s best interest to offer a quick re-ship or refund to maintain goodwill. However, if a customer has made multiple claims in a short period, it’s essential to evaluate whether further proof or investigation is necessary before agreeing to a re-ship.
Tiered Approach Example:
First-Time Occurrence: If this is the first reported theft by the customer, a re-ship or refund could be automatically processed without requiring additional proof.
High-Value Orders: For expensive items, brands may require extra steps (such as a signature or delivery to a secure location). If the item was stolen despite these efforts, consider offering a re-ship but only after investigating the circumstances. Conversely, policies may be much more lenient for low value items.
Frequent Reports of Theft: In cases where a customer has repeatedly reported stolen packages, brands can set a policy of requiring stronger evidence, such as photos of the delivery area or a police report.
This approach helps protect the business from potential abuse while also ensuring genuine customers feel supported.
Proof Requirements for Porch Theft
When customers report a stolen package, deciding what proof to request is crucial. While demanding too much evidence can lead to a frustrating customer experience, not requiring enough could expose the brand to fraudulent claims. Here are some factors to consider:
Delivery Tracking: Often, tracking data can show exactly when and where the package was delivered. Some couriers now provide a photo of the delivery location. This automated verification is helpful, as it minimizes the need for the customer to provide additional proof.
Photos or Videos: Asking customers to submit a photo of their doorstep or surveillance footage from home security cameras can help confirm the theft. However, brands should be mindful of not creating too much friction for the customer, especially if they don’t have such systems in place or if the ask will come across as too intrusive.
Police Reports: In cases of high-value items or where the customer’s reputation is suspect, brands may ask customers to file a police report and submit a copy of it before before issuing a re-ship. While this step adds a layer of seriousness, it can deter fraudulent claims.
Brands must weigh the pros and cons of each proof request. Automated verification through couriers is the least intrusive, but for more significant claims, requiring a photo or report may be necessary to reduce fraud.
Proactive Customer Communication
One of the best ways to reduce the risk of porch piracy is through proactive communication with your customers. By keeping customers informed about their delivery status, you can help minimize the amount of time a package sits unattended on their doorstep. This wouldn’t help my situation where my Hoka Speedgoats sat out front for only 3 minutes, but it will still reduce the overall odds of an incident.
Sending alerts when a package is out for delivery helps ensure that customers are prepared to receive their packages. Many e-commerce platforms integrate with couriers to offer tracking notifications via email and/or SMS. This enables customers to make plans for receiving the package or providing special delivery instructions.
By giving customers more control over when and how they receive their deliveries, you can reduce the chances of package theft while improving the overall delivery experience.
Empowering Customer Support Representatives to Make Decisions
One key factor in effectively managing package theft claims is empowering customer support representatives with the latitude to make decisions about re-shipping or providing refunds. Rigid policies can frustrate both employees and customers, leading to delays and negative customer experiences. By giving support staff flexibility, businesses can resolve issues faster and with greater customer satisfaction. Here are some ways to achieve this:
Develop Clear, Tiered Guidelines
Train support teams on how to assess cases using structured but flexible guidelines. These guidelines should outline when it’s appropriate to re-ship or refund based on factors like the value of the item, customer loyalty, likely legitimacy of the claim, and the frequency of claims. This ensures that representatives are not left guessing but can adapt based on unique situations.Example: If a loyal customer reports their first stolen package, support representatives could immediately authorize a replacement or refund without escalating the issue to management. However, if the same customer reports multiple stolen packages within a short time, the guidelines might recommend further investigation before processing a new shipment.
Foster a Customer-Centric Culture
Build a culture where customer satisfaction is at the core of decision-making. Empowering support representatives to act in the best interest of the customer encourages quicker resolutions and builds trust. This can be achieved by offering incentives for positive customer feedback and training staff to approach each case with empathy and problem-solving skills.Training: Customer support teams should be trained to handle porch pirate situations with a focus on empathy. This includes understanding the frustration that comes with stolen packages and knowing how to de-escalate tense situations. Role-playing scenarios in training can help representatives develop the confidence to handle real-world theft claims quickly and compassionately.
Trust Your Employees’ Judgement
Allowing support representatives to make judgment calls without excessive oversight fosters a sense of ownership and responsibility. Encourage team members to resolve claims on the spot, especially when there’s clear evidence or customer loyalty at stake. This reduces bottlenecks in the support process and leads to faster customer satisfaction.Example: If a customer sends in photographic proof that a package was stolen, representatives should have the authority to immediately issue a re-ship or refund rather than waiting for management approval.
Ongoing Training and Feedback
Regularly provide training that equips your support staff with the skills to make these decisions confidently. Also, gather feedback from your team about what works and what doesn’t in handling porch theft claims. Adapt your policies based on both customer feedback and the insights of your support team to ensure the most effective outcomes.Use Technology to Assist Decision-Making
Implement customer relationship management (CRM) tools that help support representatives see a customer's history at a glance. Automated flags for suspicious behavior or frequent claims can be integrated into these systems, allowing reps to make more informed decisions. However, these systems should assist, not replace, human judgment.
4: Implementing Package Theft Guarantees
Another way to differentiate your brand and support customers is by offering package theft guarantees or protection plans. This reassures customers they won’t be left empty-handed if a porch pirate strikes. At Rush Order, we’ve found these offerings can really help our clients improve checkout conversion rates.
Package Theft Protection Plans: Brands can follow the example of Route.com, a third-party service that offers optional package theft and loss protection. Route allows customers to insure their packages at checkout for a small fee, covering everything from lost shipments to stolen deliveries. This not only takes the burden off the customer support team but also provides customers with an added sense of security. You can sell and provide this protection on your own, should you wish, or integrate a tool like Route into your e-com store.
Marketing Theft Guarantees: Offering a theft protection guarantee can also become a strong marketing tool, setting your brand apart from competitors. For example, prominently displaying that your company offers a "No Worries Porch Protection" plan can attract customers (like me) who are concerned about package theft.
By integrating theft protection guarantees, you build trust with your customers, ensuring that they feel confident in their purchase, as well as supported and valued.
Parting Thoughts on Porch Theft for eCommerce Brands
Addressing porch theft is not just a matter of customer satisfaction—it’s critical for maintaining operational efficiency and trust in your brand. As porch pirates become a growing threat to e-commerce, taking proactive steps to protect packages is essential. Whether through empowering your customer support teams, offering premium delivery services, or offering theft protection, brands can reduce the impact of porch piracy while enhancing the customer experience. Flexibility, quick decision-making, and innovative solutions will help prevent future losses and strengthen customer loyalty.
Take a moment to review your current policies and approaches to package theft. Are you providing customers with the support and solutions they need to feel secure? Want to bound ideas or talk to a fulfillment expert? Contact us any time for a free no-strings consultation. We’re here to help.
… And please let me know if you come across any suspiciously cheap red-colored size 13 Speedgoats for sale on eBay. :(
Sincerely,
Dana
