Extended Warranties: Increase Margins this Holiday Season
B2B, warranties, holiday tips

Extended Warranties: Increase Margins this Holiday Season

If you are an eCommerce company, we know you’re already well in the swing of preparing for the holiday season—from Black Friday to Cyber Monday right on through those last-minute rush shipping deadlines. There’s no doubt online retail will be a hot sector yet again this holiday season, as online transactions during peak week increased 15% year-over-year from 2017 to 2018.

As a retailer, your hardest job is figuring out how to stand out from the pack, attracting and converting holiday season purchases, as well as building customer loyalty and repeat business for the future.

Offering an extended warranty plan can increase the odds that a customer actually purchases, as well as your margins on that sale. Unlike manufacturers’ warranties, which often expire after about a year and do not cover much beyond manufacturing defects, extended warranties can give your customers the peace of mind they need to commit to purchases, especially high-end gifts.


It’s not too late to add extended warranties to your eCommerce shopping carts for Black Friday, Cyber Monday, and beyond. So let’s explore how to increase your holiday sales margins with extended warranties this year.

Swap Gimmicky Holiday Marketing for Genuine Help

We’ve seen it all—and so have your customers. Gimmicky holiday marketing is often expensive, and it’s not the ticket to high-ticket sales in 2019.

On the other hand, extended warranties like Mulberry are beneficial to both the consumer and the retailer. They are a simple and effective way to increase holiday season revenue, while also building a sense of loyalty and trust in your brand that can’t be forged with a goofy postcard or jingle-filled email.


Extended warranties communicate to customers that you will actually take care of them, letting them know they will be able to fix or return a product if it breaks. Extended warranties show customers you care about them and their purchases—a heck of a lot more than any flashy Santa-themed banner ad ever could. Best of all, with extended warranties through Mulberry, there is never an up-front cost to you as the retailer.

Offer Peace of Mind

Consumers often spring for high-ticket gifts like jewelry around the holiday season. When they are in the process of considering these expensive items for themselves or loved ones, recognize that offering an extended warranty may give them the peace of mind they need to take the plunge, knowing they will be protected in the event that a stone falls out of a setting or a delicate chain needs to be replaced.

When consumers shop online, particularly for expensive gifts like appliances or power tools, they want to know they are making smart decisions. They need to feel comfortable that when they spend their hard-earned money, the product will last. They want to believe that if the item breaks, it will be fixed or replaced.

Extended warranties offer peace of mind for consumers when they spend hundreds or thousands of dollars on that beautiful watch they just know their loved one will cherish.

Think of it this way: A rock-solid extended warranty plan could mean the difference between a customer buying that high-ticket gift or skipping it in favor of something that feels less risky (hello necktie, hello towels!) And if a consumer is deciding between two similar products at the same price point from different retailers, the one with an extended warranty will more than likely win.

Bring Customers Back Throughout the Year

The holiday season is obviously an important time for retailers, and much of eComm marketing budgets, time, and attention get dedicated to focusing on the period between Black Friday and the New Year. But wouldn’t it be nice if your holiday sales efforts also paid dividends the rest of the year?

We have found that customers are two times more likely to make repeat purchases from retailers when they are able to take advantage of an extended warranty program with seamless customer service baked in.

When consumers know they can trust a brand to fix products if they stop working, they are often willing to come back again and again. Don’t underestimate the role that trust plays in repeat purchase behavior, at the holiday season and all throughout the year.

Higher Margins without Extra Work for You

Extended warranty plans can be intimidating to research, and many are difficult to implement and service. At Mulberry, we can get you up and running in just a few days. We integrate with all major eCommerce platforms, as well as custom retail systems. Plus Mulberry is a fully managed platform, meaning it serves as a one-stop-shop for eCommerce extended warranties needs.

Best of all for retailers, extended warranties can account for up to 40% of profit margins. Let Mulberry help you capitalize on this revenue generator during the holiday season in 2019.

Want to see how much you could increase your margins this holiday season
by offering extended warranties?
Check out our warranty profit calculator!


Interested in offering extended warranties to your customers? Reach out to us at Mulberry. We support most major platforms, are receipt-less, and customers love us.