This article explains Self-Managed Package Protection, which allows merchants using Checkout+ to collect package protection funds directly and manage their own claims process for lost, stolen, or damaged packages. It covers how funds are collected when shoppers add the Checkout+ product to their cart, the merchant's responsibility for reviewing and approving claims, and setup instructions for updating the Checkout+ product price in Shopify and customizing the copy in Loop Admin to include package protection language.

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Note: Loop offers two different kinds of Package Protection:

• Package Protection with Seel: Merchants allow Seel, a leading package protection company, to manage their package protection and claims resolution process.

• Self-Managed Package Protection: Merchants collect package protection funds from shoppers and directly manage any claims that are opened.

Check out our Package Protection with Seel article for details on the other method.

Merchants using Checkout+ can use Package Protection to compensate shoppers in the case of loss, theft, or damage to their order. If an order with Package Protection isn't delivered to the shopper or in one piece and a claim is approved, the merchant will compensate the shopper for the value of the affected items.

With Self-Managed Package Protection, merchants maintain complete control over their package protection offering and claims process. Here's a breakdown of how it works:

• When a shopper adds the Checkout+ product (configured for Self-Managed Package Protection) to their cart, the additional cost for package protection is included in their total price paid.

• These funds are collected directly by the merchant to handle future claims.

• In the event of a lost, stolen, or damaged package, the shopper will contact the merchant directly to initiate a claim.

• Merchants are responsible for reviewing the claim, requesting any necessary documentation (for example, photos of damage or police reports for theft), and making a decision on the claim's validity.

• If a claim is approved, the merchant directly compensates the shopper, whether through a refund, replacement, or store credit.

Self-Managed Package Protection is enabled using Checkout+. You can set up Self-Managed Package Protection in the Loop admin. Please note: If you don't see this option in your Loop admin please reach out to your Merchant Success Manager for access.

1. Navigate to Returns > Policy Settings > Checkout+ in your Loop admin

2. Turn on the toggle for Increase your returns coverage fee or offer self-managed package protection and select Offer self-managed package protection

   

3. Determine the amount you would like to collect for package protection. To determine the cost, we recommend considering factors such as the cost of returns coverage fee, your average order value, and historical loss/damage rates.

   

4. [optional] Select the button to customize copy

   1. Note: We will use default copy that includes package protection language if you decide not to customize.

5. Select Save

   1. Note: Upon save we will automatically update and/or create the necessary products in Shopify. There is no need to adjust any prices or make changes in Shopify directly.

1. In the Loop admin, navigate to Returns management > Policy settings > General. Then, under Checkout+, click Text customizations.

2. The texts fields on this page are shown to the shopper when they're on the merchant's cart and checkout pages. Customize them to include language around package protection.

   

3. Click Save when finished.

How do I determine what to charge for Self-Managed Package Protection? You have complete discretion over pricing. Consider factors such as your Checkout+ fee price, your average order value, and historical loss/damage rates.

What happens if a customer opens a claim? Customers will reach out to you directly. You will then manage the claim process yourself, including reviewing evidence, communicating with the customer, and issuing a resolution (refund, replacement, etc.).

Do I need to use a third-party for claim resolution with Self-Managed Package Protection? No, that's the core of Self-Managed Package Protection! You manage all aspects of the claims resolution in-house, giving you complete oversight and control.

What kind of documentation should I ask for when a customer files a claim? That's up to you. Common requests include photos of damaged items or packaging, order numbers, tracking information, and sometimes a signed affidavit for lost or stolen packages. Whatever your requirements are, clearly outline them in your package protection policy.

Please reach out to support@loopreturns.com with any additional questions.