What if you could give customers extra peace of mind without asking them to pay more?
With Xcotton’s new Merchant-Funded Shipping Protection, merchants can cover shipping protection costs for eligible orders and offer customers an added benefit at no additional charge. More than just a protection option, it gives merchants a flexible way to reward loyal customers, add value to promotions, and create a more reassuring post-purchase experience.
What Is Merchant-Funded Shipping Protection?
Shipping protection is typically an optional add-on that customers can choose for their orders. With Merchant-Funded Shipping Protection, merchants can choose to cover the protection cost for eligible orders, making shipping protection available to customers at no additional charge.
Merchants can tailor the offer based on conditions such as customer groups, order value, selected products, discount codes, or campaign periods. When an order qualifies, shipping protection is displayed as “Free” to the customer, while the merchant covers the premium.
This gives merchants more flexibility to decide who receives shipping protection and when, without changing the underlying protection plan or coverage.
Learn how to set up Merchant-Funded Shipping Protection
Why we introduced this feature
The post-purchase experience can have a lasting impact on how customers view a brand. Shipping protection can help reduce the uncertainty that comes with delivery, but asking customers to pay for additional protection isn't always the best fit for every situation.
We introduced Merchant-Funded Shipping Protection to give merchants another way to make protection part of the customer experience.
Instead of treating shipping protection as simply an optional add-on, merchants can use it as a customer benefit—whether that's rewarding loyal customers, adding value to a seasonal promotion, or creating an extra incentive for higher-value orders.

Xcotton Merchant Funded Shipping Protection console
Three ways merchants can put it to work
1. Reward loyal customers
Give VIP customers, loyalty members, or selected customer groups complimentary shipping protection as an added benefit.
It's another way to recognize valuable customers beyond points, discounts, or exclusive offers—and give them greater peace of mind after purchase.
2. Add value to seasonal promotions
Make shipping protection part of your Black Friday, Cyber Monday, holiday, or member-day campaigns.
Instead of relying only on discounts, merchants can add a practical benefit that enhances the overall offer without changing the product price.
3. Encourage higher-value orders
Offer complimentary shipping protection when customers reach a specific order value.
For example, a merchant could offer free shipping protection on orders above $100. This gives customers an additional reason to spend more while allowing merchants to test different incentives and find what works best for their business.
More flexibility. More ways to create value.
Every merchant has different customers, campaigns, and business goals. Merchant-Funded Shipping Protection gives you more control over where, when, and for whom you offer shipping protection. Whether you're rewarding loyal customers or adding extra value to a promotional campaign, you can make protection part of a broader customer experience strategy.
With Xcotton, shipping protection can be more than a safety net—it can be another way to show customers that your brand cares about what happens after checkout.
Make shipping protection part of your customer strategy
The customer relationship doesn't end when an order is placed. By offering complimentary shipping protection to the right customers at the right time, merchants can turn an otherwise transactional protection option into a meaningful customer benefit.
Ready to explore what's possible? Click here to discover Xcotton's shipping protection solutions and find new ways to create value for your customers beyond checkout.




