3 Things Businesses Can Do to Stop Porch Pirates in Their Tracks

For retailers and e-commerce brands, the rise in online shopping has been a double-edged sword. The increase in revenue is immense – e-commerce sales in the United States are expected to reach $1.1 trillion by 2029 – but with this growth comes a growing threat: “porch piracy.”

In 2023 alone, this crime affected a staggering 76% of Americans, with thieves snatching an estimated 119 million packages from their doorsteps, worth $8 billion.

While the financial losses are painful, the erosion of consumer confidence is even more serious. According to Penn Elcom’s Global Parcel Theft report, 1 in 5 online shoppers express anxiety about package theft and 1 in 10 are reluctant to shop online due to fear of theft, making secure delivery essential to protection of profits and brand reputation.

For e-commerce leaders, securing the last mile requires a multidimensional approach combining strategic solutions and operational vigilance. With that in mind, here are three tactics ecommerce leaders should implement.

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Offer insurance at checkout

In shipping, consumers aren’t just looking for basic insurance: they want insurance from brands they trust. According to The Retail Protection Report, 76% of shoppers say they would purchase shipping coverage if it was offered to them during checkout on their favorite brand’s website. They are even willing to pay up to 21% more for this seamless, integrated shipping experience from brands.

This type of offer provides peace of mind that their purchases, especially high-value electronics and luxury goods, are fully protected end-to-end. Think about it: When a customer splurges on a $2,000 home theater system or even a $5,000 piece of jewelry, they are making an emotional investment. There is an expectation that their valuable purchase will arrive safely and it is assumed that the retailer has taken every precaution to protect its delivery.

This is where built-in third-party shipping protection gives brands a crucial competitive advantage. The majority of carrier insurance policies have strict limits and long lists of exemptions that leave expensive electronics, collectibles, and other expensive items completely exposed.

For retailers, integrating insurance at checkout improves the customer experience while reducing operational costs of reshipping and replacement. Simply put, it’s a smart investment that builds customer loyalty. In today’s competitive e-commerce landscape, built-in shipping protection is a revenue-generating differentiator that drives customer loyalty and lifetime value.

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Ensure delivery flexibility

In today’s era of instant gratification, consumers not only expect real-time visibility into their order’s journey, but they also expect to be able to control last-mile delivery. As real-time package tracking becomes an industry standard, providing delivery flexibility to fit customers’ schedules remains an underutilized – and overlooked – tool for today’s consumers. Notably, a 2024 e-commerce consumer sentiment survey found that 76% of respondents considered the ability to track their delivery to be “extremely important.”

Today’s buyers, whether they are frequent buyers or spontaneous buyers, value the ability to:

• Reschedule or reroute deliveries to trusted neighbors if they are absent
• Specify secure alternative drop-off sites like workplaces or even secure delivery lockers
• Provide options for customers to share delivery orders by hiding instructions or passcodes

Giving customers more control reduces package vulnerability and anxiety about theft. It’s also an easy way to improve the overall delivery experience and perception of your brand.

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Implement a Porch Hacking Policy

Nearly half of Americans have been victims of a porch hack at some point, with 44 million people reporting a stolen package in the last three months alone. To get ahead of the problem, it’s essential to have an airtight hacking policy and internal protocols in place to protect your bottom line from the scourge of package theft.

First, clearly define what constitutes porch piracy and indicate which items are covered by your policy, especially high-value goods like electronics, jewelry and other luxury goods frequently targeted by thieves. Make sure your claims process is quick and user-friendly, with options like an online portal and mobile app. Fast, fair resolutions when things go wrong can turn a negative experience into a positive one: 87% of shoppers would recommend a brand after a good complaint interaction.

Educating customers about the risks of porch hacking and prevention measures is essential. Use social media, email newsletters and in-store signage to share this information. Provide detailed guides and FAQs on buying insurance and filing claims, along with video tutorials for better understanding.

Encourage preventative measures, such as using secure drop-off locations or delivery lockers, rescheduling deliveries, or rerouting packages to trusted neighbors. Promote delivery notifications and real-time tracking services to keep customers informed.

Integrate with shipping and e-commerce platforms for seamless insurance options and real-time tracking. Use technology to predict high-risk areas and automate policy creation, pricing and claims processing for greater efficiency.

A strict porch hacking policy indicates that you are protecting your customers and prioritizing safe deliveries. Combined with checkout assurance offerings and delivery flexibility, you create a secure ecosystem that improves customer experience, protects profits, and enhances brand reputation.