Porch pirates stole 58 million packages valued at $12 billion in 2024. As a result, safely receiving a package is becoming a top priority for shoppers, outweighing worries about delivery cost and speed.

The 2025 State of Shipping Report, commissioned by UPS Capital, surveyed 500 eCommerce merchants and 1,000 U.S. consumers, to uncover key insights into navigating a new era of shipping and logistics. As consumers reassess their priorities, merchants must find new ways to build trust and deliver an exceptional customer experience (CX).

Porch Piracy is Reshaping Trust

The growing fear of porch piracy is redefining customer trust and influencing merchant strategy.

Over half (55%) of consumers surveyed say they worry about package theft, and 51% report they’d feel unsafe in their neighborhood after a package is stolen.

Merchants share this concern – 93% of those surveyed agree that shipping insurance has become more critical due to rising porch piracy and fraud in the past one to two years, with 58% strongly agreeing.

This sentiment marks a sharp increase from 2022, when only 40% of merchants surveyed said porch piracy was a growing issue.

Speed is Catching Cost as a Top Shipping Priority

Beyond package security, delivery speed continues to influence purchase decisions, particularly among younger shoppers.

While 57% of consumers surveyed prefer free standard delivery, nearly half (46%) prioritize the fastest available option, such as same-day or next-day shipping.

Notably, expedited shipping resonates most with younger generations, with 55% of Millennial and 52% of Gen Z respondents favoring the fastest delivery option available.

Personalization Drives Loyalty, but Peak Season Risks Remain

Nearly all (95%) merchants surveyed have implemented more personalized shipping options in the past year to foster loyalty, with 63% making significant updates.

Top personalized features include:

• Delivery time/date selection (77%)
• Delivery speed selection (67%)
• Dynamic shipping pricing (53%)
• Location-specific promotions or offers (51%)

Although 59% of surveyed merchants feel very prepared for this year’s peak season, the holidays remain a period of elevated risk and complexity.

Merchants’ top concerns for peak season include:

• Loss, damage, or theft during shipping (69%) 
• Rising shipping costs (67%) 
• Missed delivery windows (63%)  
• Customer service capacity (40%)
• Fraud or chargebacks (31%)

Those concerns are warranted, given 37% of surveyed consumers reported experiencing lost, stolen, or damaged packages during past holidays.

In fact, the perceived risk of these issues is so high that 60% of surveyed consumers cite long or uncertain delivery windows as a primary reason for abandoning their carts — surpassing unexpected shipping costs or high product prices (both at 59%).

Claims Are Weighing on Merchants

Package theft and shipping issues are creating major operational and financial strain for merchants, much of it due to the manual effort required to manage claims.

Among surveyed merchants:

• 44% employ 3–5 full-time staff to handle claims; 38% employ six or more.
• 48% say gathering documentation is the most time-consuming step.
• 30% estimate each claim costs $50–$99, with 34% filing 50–199 claims per month.

These inefficiencies underscore the need to automate, streamline, or outsource claims management. This is likely why 76% of surveyed merchants are prioritizing AI and automation – a large jump from 2024, when only 46% of respondents had implemented AI-enabled technology.

Shipping Insurance Becomes a Brand Differentiator

Many merchants are also turning to partnering with shipping insurance providers for faster, more reliable claims resolutions. However, the research identifies a major awareness gap that savvy merchants can leverage to establish trust with customers.

Most (92%) merchants surveyed say offering shipping insurance benefits their brand, with 61% saying it strongly helps. Yet, 40% of consumer respondents are unaware that shipping insurance solutions exist.

This gap highlights an opportunity for merchants to proactively communicate this peace-of-mind benefit to build confidence.

Redefining CX Through Shipping Confidence

Today’s shipping challenges go far beyond logistics; they’re a matter of customer security, trust, and brand reputation.

The rising administrative costs of managing claims, combined with heightened anxiety over package theft, have transformed shipping insurance from a simple hedge against loss to an essential, consumer-facing tool. Merchants that integrate shipping protection and personalization into their purchase journey are best positioned to win long-term loyalty.

UPS Capital’s InsureShield® Shipping Insurance helps protect your business and brand reputation, turning every package into a positive CX.

For more insights from the 2025 State of Shipping Report, get the full report.

InsureShield Shipping Insurance protects shipments and businesses with customizable protection, fast claims, and easy processing.

For media inquiries, please contact upscapital@pancomm.com.

Insurance coverage is offered through UPS Capital Insurance Agency, Inc., a licensed insurance producer. All descriptions or illustrations of coverage are provided for general informational purposes only and do not in any way alter or amend the terms, conditions, or exclusions of any insurance policy or program.  Insurance coverage is not available in all jurisdictions or to all customers.