Any business, such as E-commerce stores or marketplaces, that engages in selling and delivering physical products to customers, can benefit from having shipping policies. Our lawyers describe how to write an effective shipping policy for e-commerce to prevent and mitigate conflicts.
What is a shipping policy?
A shipping policy is a set of guidelines and information provided by a business to inform customers about the delivery process. It outlines details such as shipping methods, delivery times, shipping costs, handling fees, international shipping options, and any other relevant information related to the shipment of products. The well-written document helps manage customer expectations and reduces confusion or misunderstandings. Usually, a shipping policy is a part of the Terms & Conditions.
Here are some conflicts that can be potentially avoided with a clear shipping policy.
- Delivery time disputes. Stating estimated delivery times can manage customer expectations and reduce disputes related to delayed deliveries. Additionally, providing information about factors affecting delivery times, such as holidays or inclement weather, helps customers understand potential delays.
- Shipping cost confusion. Specifying costs for different methods and order values helps prevent confusion about how much customers will be charged for delivering.
- International shipping issues. Clearly outlining the international shipping process, including estimated delivery times, potential customs duties, and taxes, helps customers understand the complexities of shipping internationally.
- Lost or missing packages. Including information about order tracking and what steps customers should take if they believe their package is lost or missing helps streamline the resolution process.
- Return and refund disputes. Communicating the return and refund policy within the shipping policy can help prevent returns-related disputes. Customers should be informed about the conditions for returns, whether shipping costs are refundable, and the overall process for initiating a return or refund.
- Incorrect address issues. Encouraging customers to double-check and provide accurate shipping addresses during checkout can help prevent packages from being sent to the wrong location.
What clauses must be included in the online store shipping policy?
A comprehensive shipping policy should include several key clauses to set clear expectations for customers. Here are common clauses that are typically included in a shipping policy.
- Shipping methods. Clearly outline the available shipping methods, such as standard shipping, expedited shipping, express shipping, and any other options you offer. For example, Nike suggests 4 shipping options: no rush, standard, expedited and express.
- Estimated delivery times. Specify the estimated delivery times for each shipping method. Include information about any factors that may affect delivery times, such as holidays or inclement weather. Nike delivers orders Monday-Friday (excluding holidays). Saturday and/or Sunday deliveries may be available for some exact orders.
- Shipping costs. State the shipping costs associated with each shipping method or order value. Specify if there are any handling fees or additional charges. Nike in their shipping policy sets different price options for Nike members and Guest orders based on shipping methods. Let’s imagine you are a Nike member who wants express delivery. The cost of that option is 25$.
- Free shipping. If your business offers free shipping under certain conditions, clearly state the criteria for qualifying for free shipping. Nike’s delivery is free for Nike members who order $50 or more.
- International shipping. If applicable, provide information about international shipping, including eligible countries, shipping methods, estimated delivery times, and any additional costs like customs duties or taxes.
- Order processing time. Outline the time it takes for your business to process and dispatch orders. Distinguish between order processing time and shipping time. Adida's standard method includes 1-3 business days of processing time and 3-5 business days of shipping time.
- Order tracking. Explain how customers can track their orders, including providing information on tracking services and any relevant tracking numbers. Adidas customers can check orders by visiting a special website page and entering the order number.
- Delivery іssues. Address potential delivery issues, such as delays due to unforeseen circumstances, holidays, or weather conditions. Specify the steps customers should take if they encounter problems with their delivery. For example, delays can happen if Adidas experiences higher order volume or items in customers’ orders may be out of stock due to high demand.
- Lost or missing packages. Clarify the procedure for reporting lost or missing packages, and provide information on how your business will handle such situations.
- Returns and refunds. Include details about your return and refund policy as it relates to shipping. Specify conditions for returns, whether shipping costs are refundable, and the process for initiating returns. Nike gives customers 60 days to try out their purchases.
- Address accuracy. Emphasize the importance of customers providing accurate shipping addresses during the checkout process. Clarify the responsibility of customers to ensure the accuracy of their shipping information.
- Communication channels. Provide clear contact information, such as an email address or customer support phone number, where customers can reach out with questions or concerns about their orders.
- Updates and changes. Mention that the shipping policy may be subject to updates or changes, and explain how customers will be notified of any modifications.
- Customized clauses. Depending on your business model, consider including clauses that address specific situations, such as pre-orders, bulk orders, or any unique aspects of your shipping process.
In summary, a shipping policy is a valuable tool for promoting transparency, managing customer expectations, and building trust. It serves as a reference point for customers and helps the company navigate legal and logistical aspects of shipping clearly and consistently.
