Shipping Policy Guidelines For ECommerce Merchants (Author: Joe Cole)

The purpose that a shipping policy serves for a web-based business is that it communicates to consumers the terms and conditions for delivering a product or service purchased on the merchant's eCommerce website. For best results it has to be written in a clear and concise manner and to be made available to consumers through a link on the merchant's website, as well as sent to customers in the confirmation emails that they receive after they place an order. In order to avoid misunderstandings and to minimize customer disputes and chargebacks, your shipping policy should include the following information:

- Details on the shipping options that you offer and the expected delivery time frame for each one of them.
- A full disclosure for all shipping and handling fees. It is extremely important that your customers know in advance the exact   amount of the shipping charge.

This is one of the most common causes for disputes and chargebacks.

Once the merchandise has been shipped and the customer has been sent an email with the expected delivery time frame, you should monitor the shipping process. If there is a delay, you should immediately inform your customer of the new circumstances and provide him or her with the updated delivery date. Keep in mind that if your customer does not receive the product by the expected delivery date, it is very likely that he or she will file a dispute with his or her card issuing bank, initiating a chargeback.

Be advised that fraudsters have exploited a weak link in the shipping process. When placing an order on an eCommerce merchant website, they will provide the stolen card number and will use the cardholder's correct billing address as a shipping address, thus making the transaction look completely legitimate. Once the merchandise has been shipped and they are
given a tracking number, they will redirect the shipment to their own address. To protect the integrity of your card processing account and your customers from this type of fraud, you should consider not providing a confirmation number on a selective basis, when selling higher-risk merchandise or shipping to higher-risk addresses.