Shipping Policy for your Ecommerce store

Introduction to Shipping Policy

Did you know shipping queries make up 70%-80% of all customer calls? 

Where is my order? What are the shipping costs? Do you deliver to my country?

These are some of the questions every e-commerce retailer is familiar with. As an e-commerce entrepreneur, you are bound to be answering several questions. Most of those questions will be around shipping. 

How much do you charge for shipping, how long does it take for shipping and delivery, what happens in case of delayed orders, and much more. 

Online shopping is built on the trust of customers. Therefore, you must try to give as much information about your shipping details, delivery, return, and exchange policy as possible. First, it builds confidence and trust among customers. Second, it saves you from the dreaded WISMO calls.

What is a Shipping Policy?

A shipping policy is a company document that entails every relevant information about the shipping rules and procedures of your business. This would include how orders are shipped, how long they take to be delivered, shipping costs, etc.

A shipping policy page can be as detailed or brief as you want it to be. It may not leave you feeling excited in the morning. And sure, it’s not legally required of you to create a shipping policy for your online store. But it’s a brilliant resource to address all the questions your customers may ever want to ask about shipping. 

A shipping policy should include all shipping information about shipping carriers, costs, delivery times, shipping methods, payment systems, refund and exchange, tracking methods, and delivery restrictions.

Before drafting a shipping policy for your ecommerce business, ask yourself the following questions:

• Do you offer free shipping options, flat-rate shipping, or calculated shipping to customers?
• What kind of payment options do you offer? Are you or your 3PL partner equipped to handle COD orders?
• How many carriers and mail classes do you support?
• How will you make tracking information available to your customers?
• How efficient is your delivery service? What are your shipping times? Can you provide multiple shipping options like Same Day/Next Day services or hyperlocal delivery?
• How long will order processing or manufacturing take, in the case of both custom and regular orders?
• How will you handle returns and exchanges?
• Do you ship internationally? Who manages customs on arrival?
• What is your refund policy?

These are some of the questions every online entrepreneur should ask themselves before creating a fool-proof shipping policy. We believe these are some of the most commonly asked customer questions. Answering these questions in advance should help reduce confusion and enhance the post-purchase customer experience.

Top 10 Essential Elements of a Shipping Policy

What you include in your shipping policy depends entirely on your shipping operations and supply chain. The idea is to provide transparency to customers at all times. We think there are 10 essential things every shipping policy must include. Let’s take a quick look at them below.

1) Order Processing Duration

After placing an order online, how long does it take to get shipped and arrive at the destination? The final order delivery processing times vary from one sector to another and depend on a lot of factors. Usually, custom made orders will take longer when compared with the products that are ready to ship.

2) Delivery Time

Delivery time is the actual time an order takes to reach the customer once it’s been shipped. Delivery times can vary depending on the kind of carriers and delivery services you offer. List out the carriers you integrate with, the mail classes you ship with (Standard, Express, Freight, etc.), and the time it takes.

3) Shipping Costs

Tell your customers whether you offer free shipping, variable, or flat-rate shipping right in your shipping policy. With this information, customers can gauge the overall cost they will be paying for an item and make a better purchase decision. It also reduces logistics costs and cart abandonment.

4) International Shipping

You need to figure out all the destinations where you want to deliver the products. Also, properly mention all about the customs clearance and related duties. The shipping policy is the place where you provide all sorts of special shipping instructions for all types of international shipping management.

5) Shipping Limitations

If you do not service certain locations, ship on holidays or Sundays, have weight limitations, etc., add that to the shipping restrictions section of your shipping policy. 

6) Possible Interruptions and Delays

Covid-19 and the resulting lockdowns proved how so many things are out of our hands. The same goes for shipping. It’s a fact of ecommerce that sometimes orders get delayed and nobody is at fault. To contain customer grievances in such situations, it’s best to communicate in advance how you will be handling delays. 

7) Returns, Exchanges and Refunds

You may or may not want to make returns/exchanges/refunds a part of your shipping policy. Whatever you do, clarify how your online store will manage returns/exchanges and refunds, how long they will take and how to initiate the process. A solid return policy builds confidence among customers. 

8) Damages and Losses

Some items get lost or damaged during the transit process. This is where the shipping policy of your product helps you to bear the loss from the provider. In such cases, knowing everything about how insurance policies work and how much coverage they can provide for such loss.

9) Order Tracking Information

If you don’t want anxious customers calling you up about their order status, mention how they can track their orders in the shipping policy itself. Let them know how and when they will receive tracking information. Build and manage customer expectations by clearly stating at which points of the post shipping process they will hear from.

10) Additional Information

This section allows you to cover all the bases that the previous sections did not cover. It can include payment modes, information on certain features you offer like Proof of Delivery, hyperlocal delivery, multiple international shipping options, free domestic shipping, in-store pickup or drop-off, etc.

Category Specific examples 

We looked high and low to find you the best examples of shipping policies across industries. The best shipping policies are clear, concise, and comprehensive. In our search, we have found shipping policies of all shapes and sizes. We hope some of these examples below will help you draft one for your online store.

1) Luxury Goods

Nordstrom is an American luxury retail store that ships to several countries worldwide. As you can see, it has an exhaustive shipping policy that outlines everything from scheduled pickups and deliveries to expedited and international shipping. Nordstrom does this in a very easy-to-understand drop-down menu format. It has a separate policy for Returns and Exchanges. You may fit in the returns policy within the shipping policy itself if you choose to. Nordstrom’s shipping policy is a great example to use for creating your own shipping policy template.

2) Fashion

Net-a-Porter is a one-stop destination for fashionistas all over the world. It has a simple yet informative shipping policy that clearly states the shipping fees, delivery partners, terms for taxes and duties, shipping restrictions as well as tracking information that Net-a-Porter provides. Additionally, their 24/7 customer helpline number is displayed on the Policy page itself! This is a great reference to create a shipping policy for your own store.

3) Cosmetics 

Nykaa is a cosmetics brand that also sells products from global beauty brands like M.A.C., Estee Lauder, etc., on its platform. Nykaa has chosen the FAQ format for its shipping policy. FAQs are a great way to provide relevant information in digestible bites. However, it might not work for all brands. Still, if you think the FAQ format resonates with your brand image, just go for it. 

4) Consumer Electronics

HP’s shipping policy is another good example of what your own online store’s shipping policy can be like. HP has highlighted all the necessary information, including the time of the day when shipments are delivered via Standard or Express shipping. It’s also mentioned how shipping rates are calculated. It does lack a bit in the structure that you can totally improve upon but the information is all in there.

5) Logistics and Supply Chain

DHL shipping policy is truly as detailed as it can get. But it’s also because DHL handles so much of the shipping and supply chain management itself. Depending on the kind of niche you operate in, you may want to include some or all of the topics DHL covers, in your own shipping policy.

Free Shipping Policy Template

We know drafting shipping policies from scratch can be nerve-wracking. To help you along the way, we have provided a free shipping policy template down below. This template should cover all your shipping bases. We strongly suggest switching it up to make it sound more in line with your brand so that customers respond easily to it. We hope this shipping policy template helps and urges you in making one for your own store!

Domestic Shipping 

[Inform customers about the domestic locations you ship to, domestic shipping rates, the carriers you ship with, and the kind of delivery speeds you offer.]

We provide local delivery to all domestic locations. You can choose between Standard and Express shipping options at the checkout page. The charges of shipping operation are usually calculated on the basis of delivery area pin code or zip code during final checkout. This gives free shipping on all orders above X amount.

 

Shipping option	Mail Class	Estimated delivery time	Price
Carrier 1	Standard/Express	X to X business days	$X
Carrier 2	Standard/Express	X to X business days	$X
Carrier 3	Standard/Express	X to X business days	$X

International Shipping

We offer international shipping to X no. of countries [link to list of countries] across the world with the help of our carriers, Carrier 1, Carrier 2, and Carrier 3 (feel free to add as many carriers you use for international shipping).

[You may also want to add any international shipping restrictions you may have at present] 

Due to the ongoing COVID – 19 restrictions we do not ship to the following countries [link to list of countries]. 

We offer both calculated and flat-rate shipping on international orders.

For calculated shipping – Cost of shipping per order will be calculated and then visible on the final checkout page.

For flat-rate shipping – We offer flat-rate shipping at [currency X] to [list of countries]. 

Shipping options	Mail Class	Estimated delivery time	Price
Carrier 1	Express	X to X business days	$X
Carrier 2	Freight	X to X business days	$X
Carrier 3	Expedited	X to X business days	$X

Taxes, duties and customs are paid by [customers or sellers, depending on your policies] customers. The recipient will borne all local taxes levied by the state at the time of customs clearance.

Tracking Information

You will receive an email notification from us as soon as your order is shipped. The email notification will include your Order Number and Tracking Number. You can use either of these numbers to check the status of your order on our website, [www.xyx.com].

Please note, the tracking link may need 24 hours – 48 hours to become active.

If you have not received your order within X business days or are unable to track your order, please get in touch with us at [support@xyx.com]. 

Refunds, Returns, and Exchanges

[Provide a clear description of your returns policy here. Include things like duration of the return window, restrictions on returns, how to initiate returns/exchanges and how fast refunds will be processed]

We offer 30 days returns to all products bought from [www.xyz.com]. For a full refund items must be unused, untorn and in the original packaging. The only amount deducted from your purchase will be the shipping costs for returns. 

If you have any further questions, please don’t hesitate to contact us at [support@xyz.com].

Final Conclusion

A shipping policy is a binding agreement between your ecommerce business and your customers. It’s the single most important piece of the document where you can share all the information your customers might ever need to know about your terms of shipping.

A shipping policy is a great place to build trust so that both you and your customers are on the same page. Here, you can manage customer expectations in a way that makes the shipping process hassle-free for online shoppers.

FAQs

 Q1. Who needs to have a shipping policy?

All businesses or platforms that sell and ship products online to customers need to have a shipping policy. This includes ecommerce storefronts, like Shopify, marketplaces like Amazon, Etsy and ecommerce businesses.

A shipping policy is not a mandatory document but it eases the process of shipping and assures customers that they are shopping from a trustworthy store.

Q2. How often should I update my shipping policy?

Shipping policies need to be updated every time there is a change in your delivery and supply chain. If your delivery times or any other shipping terms change permanently, make it a point to update the info in your shipping policy. 

If the changes to your shipping policy are only temporary, for instance, due to the sale season or some other restriction, display the information on your website, checkout pages and product pages. 

Q3. Where should I place the shipping policy on my website or ecommerce store?

The shipping policy should be displayed at several places so that the customer is always abreast with your shipping information. Here are a couple of ideas:-

1. a) Website Footer

Check out how Net-a-Porter has added Delivery, Returns & Exchanges and Payment links in their footer section.

1. b) Product Description Page

Customers linger longer on product pages. Having your shipping policy there is a brilliant idea!

1. c) Website Banner

Let the first thing a customer sees on your website be the shipping policy. That’s what H&M did, and it works.

Q4. Where can I find more shipping policies to use as a reference?

Here are the links to all the shipping policies we looked at while writing this article. We hope this helps you in drafting just the right one for your business.

Papa Don’t Preach – https://www.papadontpreach.com/pages/delivery

HP – https://www.hp.com/us-en/shop/cv/shippingpolicy

Nykaa – https://www.nykaa.com/shipping-policy

DHL – https://mydhl.express.dhl/in/en/legal/terms-and-conditions.html

Nordstrom – https://www.nordstrom.com/browse/customer-service/shipping-methods-charges?origin=footer&cm_sp=corp-_-corp_CustomerService-_-globalfooternav_shipmethod

FILA – https://www.fila.com/customer-service/shipping/shipping-policy-and-rates.html

H&M – https://www2.hm.com/en_us/customer-service/delivery.html

Hamleys – https://www.hamleys.com/delivery-policy

Net-a-Porter – https://www.net-a-porter.com/en-in/content/help/delivery/

Aachho – https://www.aachho.com/pages/shipping-policy

Nike – https://www.nike.com/help/a/shipping-delivery