ShipFast Commerce Case Study | CoverKit

The Challenge

ShipFast Commerce is an e-commerce platform powering over 5,000 online stores. Their merchants were facing a common problem: customers abandoning checkout due to concerns about shipping risks.

Exit surveys revealed that 23% of abandoned carts cited shipping concerns as a factor. Customers worried about packages being lost, damaged, or stolen, especially for higher-value items.

ShipFast needed a solution that would address customer concerns without adding friction to the checkout experience.

The Solution

ShipFast integrated CoverKit's shipping protection API to offer insurance at checkout. The integration took just 3 days:

Day 1: API integration and sandbox testing
Day 2: UI implementation and A/B test setup
Day 3: Production deployment and monitoring

// ShipFast's checkout integration
const ShippingProtection = ({ cart }) => {
  const [quote, setQuote] = useState(null);

  useEffect(() => {
    coverkit.quotes.create({
      product: 'shipping_protection',
      coverage: {
        itemValue: cart.total,
        shippingMethod: cart.shipping.method,
        destination: cart.shipping.address,
      },
    }).then(setQuote);
  }, [cart]);

  return (
    <div className="protection-option">
      <input type="checkbox" id="protection" />
      <label htmlFor="protection">
        Protect your package for ${quote?.premium / 100}
      </label>
    </div>
  );
};

The Results

After launching shipping protection, ShipFast saw immediate improvements:

Conversion Rate Increase

Checkout conversion increased by 40% for customers who were shown the shipping protection option. The A/B test showed statistical significance within the first week.

Revenue Impact

With 35% of customers opting for protection, ShipFast added $2 million in annual revenue. This came from:

Direct protection revenue (margins on premiums)
Recovered sales from reduced abandonment
Higher average order values

Customer Satisfaction

Support tickets related to shipping issues dropped by 65%. When customers did have problems, claims were resolved within 48 hours through CoverKit's automated processing.

Key Takeaways

Shipping protection addresses a real customer concern that affects conversion
API-first integration enables rapid deployment (days, not months)
The revenue opportunity extends beyond just protection margins
Automated claims processing is essential for scale

ShipFast Commerce