An online shop is a great way to access a wider customer base and increase sales. When starting your online shop, terms and conditions are essential to protect your business from potential liability and legal disputes. In this article, we introduce some basic terms that should be included in your online shop’s terms and conditions in Australia.
Payment
Your payment clause should outline how the customer is to pay and at what time they are to pay. A clear payment process in your terms and conditions ensures that you will be paid in appropriate time.
With online shopping, the most common method of payment for new businesses is to use a third party gateway. If you use gateways like PayPal or Stripe, detail this in your terms and conditions. For time and condition of payment, you could either accept a lump sum payment or accept payment in installments.
Narrowing the list of acceptable payment methods and structures can make administrative and legal work easier. However, having flexible payment options can improve customer experience.
Refunds
Your terms and conditions should incorporate your Returns Policy by referencing it in the terms. See our article here for more information about returns policies and your legal obligations.
Delivery
Good delivery procedures can greatly enhance customer experience. However, so many factors will affect your products between the time you ship them off and the time they reach your customer. To best protect your business and make the process clear for your customers, you want to account for as many of these factors as possible in your Delivery clause.
Think about:
- Where do you offer shipping to?
- Which companies are going to deliver the product?
- How long will the shipping take?
- Who’s responsible for items damaged or lost in transit
If goods are damaged or lost in transit, you will generally still be liable to the customer, not the delivery company! This may be further complicated if the package is marked as delivered, in which case the customer will need to check with the courier. To minimise conflict, consider using tracked delivery with signature, and have insurance over the delivery. This will protect the costs of damaged or lost packages and provide a clear timeline of the delivery process.
International delivery and returns can also be expensive (especially for small business). We recommend that you carefully document the process of any international deliveries and returns to avoid surprises.
Where can I get my online shop terms and conditions drafted?
Well-drafted and comprehensive terms and conditions can ensure a great shopping experience for your customers whilst protecting your online shop. However, there’s much more to terms and conditions than clauses on payment, returns and deliveries. For help with drafting your online shop’s terms and conditions, contact us for a free, no-obligation chat.
