Presented in partnership with UPS Capital.
A Retail Insider webinar with Insureshield by UPS Capital examines the financial and customer-service consequences of lost, damaged and stolen shipments, and how retailers can better manage delivery risks.
Lost, damaged and stolen shipments can create significant financial and operational challenges for Canadian retailers, particularly during peak shopping periods when order volumes increase. Beyond replacing merchandise or issuing refunds, businesses may face additional transportation expenses, customer-service demands and the possibility of losing future sales from dissatisfied customers.
These issues were examined during an October 7 Retail Insider webinar presented in partnership with Insureshield by UPS Capital. The discussion featured Vishav Ranjan, a business development manager with UPS Capital Canada Insurance Brokers, and explored how retailers can manage shipping risks, protect their financial interests and respond when deliveries do not go as planned.
Shipping Problems Can Affect Customer Loyalty
A central theme of the webinar was the relationship between delivery performance and customer satisfaction. Although retailers frequently rely on third-party carriers, consumers generally expect the business they purchased from to resolve problems when merchandise arrives damaged or fails to arrive.
“Customers often do not separate the retailer from the delivery experience,” Ranjan explained during the presentation. He noted that order updates, delivery communications and problem resolution all contribute to the customer’s impression of the retailer, regardless of which company handles transportation.
The importance of this relationship was reflected in two audience polls conducted during the webinar. In the first, participants identified lost shipments as the shipping risk most likely to affect their businesses during peak season. A second poll found customer dissatisfaction was the leading concern arising from lost, damaged or stolen shipments, followed by additional shipping costs and lost repeat business.
The responses illustrate the concerns of businesses participating in the discussion. For retailers investing in customer acquisition, loyalty programs and omnichannel shopping experiences, a delivery problem can undermine the customer relationship after the transaction has already taken place.
The Financial Impact Extends Beyond Merchandise
Shipping failures can affect profitability through merchandise replacement, transportation expenses and the administrative work involved in resolving incidents. Retailers may need to investigate missing shipments, communicate with customers, gather documentation and coordinate refunds or replacement orders, all while managing their regular fulfillment operations.
These expenses can be particularly significant for businesses shipping higher-value merchandise or operating with limited margins. When an order must be replaced without generating another sale, the retailer incurs additional costs while receiving no corresponding increase in revenue.
Ranjan explained that a single shipping incident can affect profit, operational effort and customer loyalty simultaneously. Businesses therefore need to consider the full cost of an incident when evaluating their exposure to shipping disruptions, particularly during periods of elevated sales activity.
Peak season can make these challenges more difficult to manage. Higher order volumes create additional activity throughout fulfillment centres and carrier networks, while increased handling and transportation demands can complicate the movement of merchandise.
Canadian e-commerce activity provides context for the scale of retail operations that depend on delivery services. According to Statistics Canada, seasonally adjusted retail e-commerce sales reached $5.5 billion in July 2026, representing 7.5 per cent of total retail trade. Although that was a 3.5 per cent decrease from June, it illustrates the substantial value of retail transactions conducted through online channels.
UPS Capital’s InsureShield Offers Shipping Protection
During the webinar, Ranjan discussed InsureShield Shipping Insurance, offered through UPS Capital Canada Insurance Brokers, as one option for managing eligible financial losses associated with shipping disruptions.
The program is designed to provide coverage for qualifying loss and damage incidents across different carriers and transportation arrangements. This can be relevant for retailers using multiple delivery providers to serve different markets, manage transportation expenses or handle international orders.
According to UPS Capital, eligible coverage can provide reimbursement of up to the full invoice value of merchandise plus associated shipping costs, subject to policy terms and limits. For retailers, this can help address the financial consequences of a qualifying loss, including the margin that would otherwise be affected by replacing the original order.
The company also offers technology options intended to simplify insurance administration. Ranjan discussed integrations involving shipping and e-commerce platforms such as ShipStation, WooCommerce and Shippo, along with API-based solutions and spreadsheet uploads for businesses with different operational requirements.
Claims administration was another focus of the presentation. Ranjan explained that InsureShield customers can initiate claims through the insurance process, although businesses must follow applicable notification and documentation requirements. UPS Capital advertises a nine-month claims-filing window and a 90-day period for reporting concealed damage.
During the webinar, Ranjan said most fully documented claims are resolved within seven days. This is a company-reported processing measure, and individual claims may take longer depending on their circumstances and the information provided.
Package theft following delivery was also discussed. Ranjan clarified that porch-piracy protection is available through an optional endorsement, meaning retailers need to confirm that it is included in their particular insurance arrangement.
Coverage depends on policy conditions, exclusions, applicable limits and geographic eligibility. UPS Capital’s Canadian website currently states that the insurance services referenced there are available to businesses operating in Ontario, so retailers elsewhere in Canada should confirm availability directly before assuming they qualify.
Managing Cross-Border Shipments and Delivery Delays
The webinar’s question-and-answer session addressed several operational situations facing Canadian retailers, including cross-border shipments, the use of multiple carriers and the distinction between delayed and lost packages.
Ranjan explained that InsureShield can provide options for eligible shipments moving between Canada and the United States, as well as certain shipments transported entirely within the U.S. for qualifying Canadian businesses. The latter arrangement, known as foreign inland transit, can be relevant when a Canadian retailer sources merchandise from an American supplier and ships directly to an American customer.
He also discussed the challenge of determining when a delayed shipment should be treated as lost. During peak season, carrier tracking information may not be updated immediately, creating uncertainty for retailers deciding whether to wait, contact the carrier or send replacement merchandise.
Customer communication is particularly important in these situations. Providing realistic delivery expectations and explaining delays can help retailers manage customer concerns while investigating the status of an order, potentially avoiding unnecessary replacement shipments.
For smaller retailers, shipping protection may need to evolve as sales volumes and delivery requirements change. Ranjan discussed reviewing coverage arrangements periodically, including shipment values, applicable minimums and policy structures, so that protection remains appropriate for the business.
Insurance can help recover eligible financial losses, but it does not eliminate the need for reliable carriers, appropriate packaging, accurate shipment records and responsive customer service. These operational practices remain important when managing delivery problems and protecting customer relationships.
Preparing for Peak Shipping Periods
The webinar offered retailers practical information about how shipping risks affect operating costs, customer satisfaction and the financial consequences of replacing lost or damaged merchandise. It also examined insurance arrangements available to businesses seeking to manage those risks.
Retailers preparing for increased order volumes can review shipment values, carrier arrangements, destinations, claims documentation and procedures for responding when deliveries are disrupted. Those considerations can help determine where shipping insurance fits within a broader fulfillment and customer-service strategy.
The full Retail Insider webinar with UPS Capital includes additional information about InsureShield Shipping Insurance, claims procedures, technology integrations and questions raised by participating retailers.
