1. 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. 

3. 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.

3.1) Order Processing Duration

Once an order is placed, how long does it take to get shipped? Order processing times differ from industry to industry. Custom-made orders will take longer processing times than items that are ready to ship. If for any reason your order processing durations change, during peak seasons, sales, etc., be sure to update that on your website, product, and checkout pages.

In the image below, see how "Papa Don't Preach" has clearly mentioned their order processing times in their shipping policy:

3.2) 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.

The image below shows how the global toy retailer, Hamleys, does a brilliant job of including both the delivery times and shipping charges in their shipping policy:

3.3) 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.

Here's an image of "Nike" stating delivery charges and shipping options for orders of varied mail classes:

3.4) International Shipping

List out all the destinations you deliver to internationally. Also mention how customs clearance and duties will be handled. If you have any special shipping instructions for international shipping (special packaging, shipping surcharges, etc.), the shipping policy is the right place to include all of that.

In the image below you can see "Aachho" has a dedicated section listing out everything customers might want to know about international shipping, including carriers, customs clearance, and returns/exchanges:

3.5) 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.

Here's an image of "FedEx" clearly laying out the ground rules of shipping prohibited or restricted items:

3.6) 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.

This image shows how "H&M" does a fantastic job of intimating customers about possible delays right on their shipping policy page:

3.7) 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. 

Here's an image of "FILA's" return policy with very clear instructions on the window for free returns and non-returnable items:

3.8) Damages and Losses

Some items get damaged or lost in transit. Your shipping policy is where you want to sort out well in advance who bears the brunt of such a loss. It’s worth mentioning here how insurance policies work and how much coverage they provide. 

Check out the image of "Net-a-Porter's" shipping policy where it gives directions to customers on what to do next if they receive a damaged product:

3.9) 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. 

"HP's" shipping policy includes a detailed section on how customers can track their orders. See the image below:

3.10) 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.