• For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
  • New Suppliers
Facebook Twitter Instagram
Wednesday, February 8
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook Twitter Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
  • New Suppliers
WholesaleCentral.com Blog
Home»For Buyers»Ecommerce»Protection Commerce: The New Revenue Stream for Retailers
Ecommerce

Protection Commerce: The New Revenue Stream for Retailers

PublisherBy PublisherMay 25, 20164 Mins Read
Facebook Twitter Email
Share
Facebook Twitter Email

by Matt Pufall

Retail RevenueAs an online business, you are are continuously looking to increase revenue potential. Many times, this can be accomplished by offering free shipping if a customer spends a certain amount, suggesting similar products, or upselling customers to a more expensive model with promises of more satisfaction. In addition to offering up other products customers might like, or promoting upgraded versions of the items of interest, retailers should try and add value to the product that the customer already wants. For retailers selling high-ticket items, adding a protection plan to your offerings could significantly impact your bottom line.

Protection Plans: A Win-Win Scenario

Protection plans offer a great opportunity for retailers. By packaging up a protection plan with the original item of interest, the customer gets additional peace of mind knowing their investment will be repaired or replaced in the event of damage. This, in turn, helps increase loyalty from that customer, leading to a higher chance of repeat business.

The retailer benefits as well. Protection plans are commission-based revenue generators for each sale, and the retailer makes no additional investment to generate that revenue when they partner with a third-party to facilitate the sale and handle the claims.

Why Monetize a Protection Plan?

Consumers are becoming more interested in protecting their valuable purchases. They’re more inclined to protect an expensive iPhone instead of that clamshell phone they had ten years ago. Thus, retailers have a great opportunity to leverage what’s called “protection commerce.”

There’s new research to support interest from retailers in offering more protection plans.

Retail RevenueIn a recent survey commissioned by the Product Protection team at Assurant®, 57 percent of small business retailers think a commission-based protection plan offering on items at check-out can increase their annual revenue by as much as 25 percent. What’s more, 35 percent of retailers polled feel protection plan offerings could increase their Average Order Value (AOV) between six and nine percent.

Beyond revenue, increased customer loyalty is also at stake. 40 percent of retailers believe that protection plan offerings could result in repeat business on a quarter of all customer transactions. 

Why Aren’t More Retailers Leveraging Protection Commerce?

What’s preventing more retailers from leveraging protection commerce? According to the survey, the biggest reason is the technology enhancements required to add protection plans into the web store checkout process. This is problematic as 43 percent of retailers feel they do not have the necessary IT resources to implement the technology to make a protection plan available on their ecommerce site. 

Fortunately for these retailers, commission-based protection plans from third parties today can be seamlessly integrated with full claims management support into their web store without any involvement from in-house IT staff. Once this takes place, retailers simply collect the commissions on each protection plan sale.

Added Value

Consumers want to get the most out of the product that they are buying. By offering customers a chance to add additional value to an item that interests them through protection plans, e-retailers can make the item more desirable or appealing all while increasing their own revenue.  Offering a “protection commerce” product like protections plans can also build an increased level of trust, loyalty and repeat business with e-retailer’s customers. Truly a win-win situation for consumers and e-retailers, “protection commerce” should be a staple in every web store.

Retail RevenueMatthew Pufall is Director of Product for Assurant Solutions, with a focus on developing and marketing Assurant Product Protection, a technology solution that integrates easily into online retail platforms to help SMBs offer revenue-generating protection plans to their customers. For more information visit www.AssurantProductProtection.com.

May 2016 Issue retail sales
Share. Facebook Twitter Email
Previous ArticlePayment Processing Made Easy with American Credit House
Next Article Making the Most of your Trade Show Experience

Related Posts

Best Video Marketing Tips for Retailers

January 19, 2023

5 Ecommerce Tips to Enhance Customer Support

January 17, 2023

2023 Retail Success Guide

January 5, 2023
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Latest Posts

Overstock Liquidations

January 25, 2023

5 Essential Tax Season Preparation Tips

January 24, 2023

Top 10 Closeout & Liquidation Suppliers

January 20, 2023

Technology to Prepare Your Store for the Future

January 19, 2023

Best Video Marketing Tips for Retailers

January 19, 2023

Winning With General Merchandise

January 18, 2023
how-to
Product News

Overstock Liquidations

January 25, 20236 Mins Read

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Retail News

5 Essential Tax Season Preparation Tips

January 24, 202310 Mins Read

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Wholesale 101 for Buyers

How to Create a Google Business Profile

January 18, 20236 Mins Read

Looking for new ways to get your brand noticed? Creating a Google Business Profile can…

Retail News

Using Color Theory in Window Displays to Increase Foot Traffic

December 1, 20224 Mins Read

by Melissa Stivale While we do not often stop to think about how much color…

  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2023. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.