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UPS Bundles Fraud and Loss Protection Into New Secure Commerce Service

UPS bundles InsureShield, Parcel Pro and CommerceShield into Secure Commerce as e-commerce fraud losses hit 3.2% of revenue on $6.4 trillion in global sales.

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Elena Vasquez
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Key points03

  • UPS Secure Commerce combines InsureShield Shipping Insurance, Parcel Pro and CommerceShield into one portfolio.
  • Global e-commerce sales hit an estimated $6.4 trillion in 2025; fraud losses run at roughly 3.2% of revenue.
  • FedEx launched a comparable service, FedEx Authenticated Delivery, two weeks earlier.

UPS Inc. has launched "UPS Secure Commerce," a bundled service that pulls three existing products — InsureShield Shipping Insurance, Parcel Pro and CommerceShield — into a single portfolio aimed at shielding merchants from fraud, revenue loss and business disruption across the shipment lifecycle.

The announcement lands as global retail e-commerce sales reach an estimated $6.4 trillion in 2025, with reported fraud losses running at roughly 3.2% of e-commerce revenue, according to figures UPS cited from eMarketer and the Merchant Risk Council. That 3.2% is only the starting point. UPS points to additional costs from disputes, refunds, reshipments, claims handling, returns, customer recovery and reputational damage that pile on top of direct fraud losses.

For shippers and e-commerce merchants, the pitch is straightforward: one contract covering shipment protection, high-value cargo and proactive risk mitigation instead of three separate products. InsureShield covers shipment protection with what UPS describes as frictionless and fast claims recovery. Parcel Pro handles high-value and specialty shipments — think jewelry, electronics and other goods that attract theft. CommerceShield adds the technology layer, using data to flag shipping and e-commerce risk before it turns into a loss.

UPS frames the bundle as more than insurance. The company says the service supplies data-driven intelligence, actionable insights and proactive risk management before fraud, delivery issues, shipment loss or operational mishaps become costly mistakes.

Risk does not stop at the moment of delivery, UPS argues. Merchants must also plan for inventory challenges, the purchase experience and the decisions that shape customer loyalty — territory the carrier wants to occupy with its own tooling.

"With UPS Secure Commerce, we're protecting more than just the package," UPS Chief Digital and Technology Officer Bala Subramanian said. "We are empowering businesses to protect revenue, strengthen customer trust and make more confident decisions during each step of the supply chain journey."

The move follows a near-identical play from FedEx Corp., which two weeks ago launched "FedEx Authenticated Delivery," a service adding extra security for high-value and sensitive shipments. The back-to-back launches signal that both parcel giants now see fraud protection not as an add-on but as a competitive front in the fight for high-value e-commerce volume — volume where margin hinges on keeping loss rates near zero.

For forwarders and merchants shipping high-value goods, the practical consequence is a contracting decision: bundling risk products with the carrier that moves the freight versus buying coverage independently. As fraud losses continue to bite into thin e-commerce margins, expect both networks to keep expanding authenticated, insured and data-driven delivery products through 2025.

Original: about.ups.com

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Elena Vasquez

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News editor covering industry trends and analytics at Waybill Wire.

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