Maximising business potential: Why 3PLs should adopt white-labelled Shipping Insurance before Peak Season
As the peak retail season approaches, Third-Party Logistics (3PL) providers in the UK are gearing up to meet increased demands. In such a competitive market, differentiating and adding value is crucial. One strategic move that can provide a significant edge is offering white-labelled shipping insurance. Here are the top three reasons why UK 3PLs should consider integrating this service into their portfolio.
1. Enhanced Customer Trust and Satisfaction
Shipping insurance provides a safety net for retailers and consumers alike. By offering white-labelled shipping insurance, 3PLs can instil greater confidence in their clients. This assurance is particularly valuable during peak season when shipping volumes are high, and the risk of loss or damage increases.
Mitigating Risk: Retailers are more likely to trust a 3PL that offers comprehensive coverage for their goods. This reduces the financial impact of lost or damaged shipments, translating into higher client retention rates.
Improved Customer Experience: When end consumers know their purchases are insured, it enhances their overall shopping experience. Happy customers lead to repeat business, benefiting both the retailer and the 3PL.
2. Competitive Differentiation
The logistics industry is fiercely competitive, and 3PLs need to find ways to stand out. White-labelled shipping insurance can be a unique selling point that sets a 3PL apart from its competitors.
Value-Added Service: By bundling shipping insurance as part of their service offering, 3PLs can position themselves as comprehensive logistics partners. This can be particularly attractive to smaller retailers who may not have the resources to secure their own insurance.
Brand Strengthening: Offering white-labelled insurance under the 3PL’s own brand reinforces brand identity and loyalty. Clients perceive the 3PL as a one-stop shop for all their logistics needs, fostering deeper business relationships.
3. Revenue Generation and Financial Stability
Incorporating white-labelled shipping insurance is not just about adding value to the service offering; it also opens new revenue streams.
Premium Income: 3PLs can earn a margin on the insurance premiums, providing a steady income stream. This can be particularly lucrative during peak seasons when shipping volumes spike.
Reduced Liability Costs: An insurance policy in place can mitigate potential financial losses for the 3PL. This protection ensures greater financial stability and predictability, crucial for long-term planning and growth.
Implementation Tips for 3PLs
To successfully integrate white labelled shipping insurance, 3PLs should consider the following steps:
Partner with Reputable Insurers: Choose a regulated insurance product. Anansi is the only B2B regulated shipping insurance that offers automated loss claims and a 98% payout rate.
Seamless Integration: Ensure that the insurance offering is seamlessly integrated into the logistics platform, making it easy for clients to opt-in. We’re integrated into the shipping rules with platform suppliers like Despatch Cloud.
Transparent Communication: Clearly communicate the benefits and coverage details to clients, ensuring they understand the value and protection offered. Anansi can help you with messaging based on our own experience of selling to retailers.
As peak retail season approaches, UK 3PLs have a prime opportunity to enhance their value proposition through white-labelled shipping insurance. This strategic move can bolster customer trust, differentiate services, and create new revenue streams, positioning 3PLs for success in an increasingly competitive market. By adopting this approach, 3PLs not only safeguard their clients' interests but also fortify their own businesses against the uncertainties of high-volume shipping periods.
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