As the holiday shopping season ramps up, many online shoppers are encountering a new fee at checkout: Order Protection. While familiar with surcharges for concert tickets or premium electronics, consumers are now seeing extra charges applied to everyday items like shoes or protein drinks.
What is this fee, and should you pay it?
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The rise in package theft is staggering. In the past year alone, porch pirates stole an estimated $12 billion worth of packages, impacting one in four Americans, according to a report from Security.org. Thieves often strike in broad daylight.
For businesses, the financial impact is immense, and it appears they’re passing the cost onto customers.
What Is ‘Order Protection’?
Order protection or order coverage is essentially package insurance. The company OrderProtection.com partners with retailers to offer coverage for stolen, lost, or damaged packages. We noticed these fees added to purchases automatically.
- A $57 red light device came with a $3 “order coverage” fee.
- A $139 pair of running shoes included a $5.75 shipping protection charge.
- A protein drink mix was tacked with a $2 fee.
These charges are often automatically added during checkout, but shoppers can opt out—if they notice. However, removing the fee prompts a warning such as: “By deselecting, we are not liable for lost or stolen packages.”
How does ‘Order Protection’ charge work?
If you pay for Order Protection, you’re covered if something goes wrong after your order ships. The service promises to reimburse you for stolen, lost, damaged, defective, or incorrect items. (Here’s more of the FAQ from customers) You may a percentage of the item value.
However, filing a claim can require documentation or even a police report, depending on the circumstances.
It is true shipping companies usually offer insurance for items. But it might not fully cover your item unless you buy extra insurance.
- Carrier Shipping Insurance: Many carriers, like UPS and FedEx, offer default coverage up to $100 for free. You can usually add extra insurance to cover higher priced items. For example, with FedEx for items valued $100-$300 you can purchase additional insurance for $3.50.
- Credit Card Purchase Protection: Some credit cards automatically provide coverage for lost or stolen items.
With package theft on the rise, it’s no surprise businesses are introducing measures like Order Protection. But before you pay extra, check if you’re already covered by your shipping provider or credit card.
