BoxDrop Logistics Case Study | CoverKit

The Challenge

BoxDrop Logistics provides last-mile delivery services for e-commerce retailers. They handle over 500,000 deliveries per month across 15 metropolitan areas.

Their biggest operational headache? Shipping disputes. When packages were lost, damaged, or stolen:

Customers blamed BoxDrop
Merchants blamed BoxDrop
The support team spent hours mediating
Claims took weeks to resolve

Dispute resolution was consuming 30% of their customer support resources and damaging relationships with merchant partners.

The Old Process

Before CoverKit, BoxDrop's dispute resolution looked like this:

Customer reports issue (Day 1)

Support agent investigates, contacts driver (Day 2-3)

Escalation to merchant if not resolved (Day 4-5)

Determination of liability (Day 6-10)

Refund or replacement processed (Day 11-14)

Average resolution time: 14 days. Customer satisfaction during disputes: 23%.

The Solution

BoxDrop integrated CoverKit's shipping protection to automate the entire process:

// Every delivery automatically protected
async function createDelivery(order, merchant) {
  const delivery = await db.deliveries.create({
    orderId: order.id,
    merchantId: merchant.id,
    items: order.items,
    destination: order.shippingAddress,
  });

  // Automatic protection policy
  const protection = await coverkit.policies.create({
    quoteId: await getQuote(order.total, order.destination),
    payment: { method: 'merchant_billing' },
    metadata: {
      deliveryId: delivery.id,
      merchantId: merchant.id,
    },
  });

  return { delivery, protection };
}

// Self-service claims for customers
async function reportDeliveryIssue(deliveryId, issue) {
  const delivery = await db.deliveries.get(deliveryId);

  // Automatically file claim with CoverKit
  const claim = await coverkit.claims.create({
    policyId: delivery.protectionPolicyId,
    type: issue.type, // 'lost' | 'damaged' | 'theft'
    description: issue.description,
    amount: delivery.declaredValue,
  });

  // 90% auto-approved within 24 hours
  if (claim.status === 'approved') {
    await initiateRefund(delivery, claim.payout);
    await notifyCustomer(delivery, 'refund_initiated');
  }

  return claim;
}

The New Process

After CoverKit integration:

Customer reports issue via self-service portal (Hour 0)

Automated claim filed with CoverKit (Hour 0)

ML model approves claim (Hour 1-24)

Customer receives refund (Hour 24-48)

Average resolution time: 18 hours. Customer satisfaction during disputes: 89%.

The Results

Operational Efficiency

95% reduction in dispute resolution time (14 days to 18 hours)
60% fewer support tickets related to shipping issues
Support team reallocated to proactive customer success

Customer Satisfaction

CSAT increased by 28 points overall
Dispute CSAT increased from 23% to 89%
Repeat customer rate increased by 15%

Merchant Relationships

Fewer disputes meant fewer tense merchant conversations
Merchant NPS increased by 34 points
Contract renewal rate increased to 94%

Key Takeaways

Automated claims processing eliminates dispute overhead
Self-service tools improve customer experience during frustrating moments
Fast resolution prevents escalation and relationship damage
Support resources can be redirected to value-add activities

BoxDrop Logistics