How to Create Your Own Shipping Policy

A detailed shipping policy that clearly outlines shipping information is a simple way to help build trust with your e-commerce customers and manage customer expectations. 

Shipping policies should provide details on shipping information, often including return and exchange policies as well, so the customer can make informed decisions when ordering. Having an accurate shipping policy that is easy to read can help customers to know what to expect and therefore increase customer satisfaction. This can help you to drive business.

What Is a Shipping Policy?

A shipping policy is a resource that informs your customers about information related to shipping. This is a web page or document detailing shipping information for orders placed online. 

The shipping policy will typically include details related to shipping costs, delivery times, and delivery options/methods. It will also frequently include information regarding returns and exchanges to make it a comprehensive resource. 

A shipping policy can be as detailed as you need it to be. It should provide the customer with enough information to make informed decisions before making a purchase. 

Why Do You Need One?

A shipping policy informs your customers on what to expect, can help to answer shipping related questions, and protect you from potential customer complaints. More than half of online shoppers abandon their carts when extra costs add up too high. By outlining your shipping costs, methods, and delivery options up front, the customer will know exactly what to expect before placing their order. 

A shipping policy can offer the following benefits:

• Informs customers on shipping costs, methods, and delivery times: Customers are then able to calculate shipping based on where they live and how fast they need the item. As a result, they will not be blindsided with higher-than-expected costs upon checkout.
  
• Manages customer expectations: By outlining shipping details including delivery times, customers know what to expect and can therefore be realistic about how long it will take their item to arrive.
  
• Reduces the number of support calls and chats: When you have detailed and clear shipping information for the customer, this will limit questions about shipping through your support channels.
  
• Protects the business: A clear and accurate shipping policy, also including return and exchange information, can also protect you from customer complaints regarding a lack of information on higher-than-expected costs.

What Should Your Shipping Policy Include?

While your shipping policy needs to be concise, clear, and easy to read, it should also contain enough details to answer all the questions a customer might have about shipping times, costs, and methods. You should include the following information in your shipping policy:

Shipping Costs

You need to offer clear details on shipping costs for different locations and methods. This allows the customer to calculate their total order costs before checkout and can reduce cart abandonment rates. 

Shipping Methods & Delivery Times

This can commonly be outlined in a table format that details all the methods of shipping that you offer and expected delivery times. Include processing time. This information can detail standard shipping options, express shipping, and expedited options.

International Shipping Options

Different e-commerce businesses will have varying policies on international shipping and rates. Be sure to detail what yours is exactly — how much it will cost, who handles customs and imports, who your international carrier is, and who is responsible for international taxes as well as any potential extra fees or charges.

Shipping Restrictions

Some products are not legally permitted to be shipped to certain locations due to state or other legislature. Additionally, you may not ship to certain countries or to PO boxes.

Be sure to detail all your shipping restrictions as well as which parties may be impacted by them.

What to Do in the Event of Missing or Lost Packages

Packages can go missing or be lost, and most of the time, this is out of your control. You should outline what to do when and if this does happen.

Direct the customer on how to report a missing or lost package and what steps to follow. This can create peace of mind in the ordering process even if the package is delivered as promised.

Return & Exchange Information

Outline your return policy and how to exchange items to ensure that customers understand that they have options when they are ordering. This can often be included in your shipping policy.

Where to Display Your Shipping Policy

The shipping policy needs to be accessible to customers before they make a purchase, so they are well informed and can calculate costs before checking out. It can be included as a link in your website footer, in a banner, as a pop-up box, or in the checkout process. 

Updating Your Shipping Policy

Your shipping policy will need to be updated as your business evolves. For example, as you scale up, you can often move fulfillment centers or work with a 3PL (third-party logistics) provider who can split inventory to make it geographically closer to your customers. This can impact shipping costs and delivery times.

It is recommended that you update your shipping policy at least every six months or any time you make a big change that impacts shipping details. Your shipping policy needs to be always kept current.

Tips on Creating a Shipping Policy

Your shipping policy should be easy to read but also as detailed as possible. It is often preferable to use tables that make it clear and easy to navigate through the different options. 

Your shipping policy should include your shipping methods, associated costs, and expected delivery times as well as shipping cutoff times. For example, outline holiday shipping deadlines and how long international shipping will take. 

You can also outsource order fulfillment to a 3PL, which will then handle your order processing, shipping, and delivery. A 3PL provider often has advanced technology, relationships with shipping carriers, and the ability to help you provide more efficient and cost-effective order fulfillment for your customers. 

References

Ecommerce Shopping Cart Abandonment Statistics (2021). (December 2020). Fundera.