How to Write a Shipping Policy That Builds Trust and Boosts Sales
Nearly half of all online shoppers abandon their carts when unexpected shipping costs appear at checkout. That single statistic reveals why your shipping policy is one of the most important pages on your ecommerce website—and why getting it wrong can cost you thousands in lost sales.
A well-crafted shipping policy does more than explain delivery times. It answers questions before customers ask them, builds confidence that leads to completed purchases, and protects your business when shipping issues inevitably occur. Research shows that 98% of shoppers say delivery impacts their brand loyalty, making shipping transparency a critical factor in customer retention.
This guide walks you through creating a comprehensive shipping policy with practical templates you can customize for your business.
Why Your Ecommerce Business Needs a Shipping Policy
Before diving into the specifics, consider what a shipping policy actually accomplishes for your business.
Reduces Cart Abandonment
Unexpected costs are the leading cause of cart abandonment. When customers reach checkout and discover shipping fees they did not anticipate, 47% will leave without completing their purchase. A clear shipping policy displayed prominently throughout your site eliminates this surprise and keeps customers moving toward checkout.
Decreases Customer Support Inquiries
Every "Where is my order?" email costs your business time and money to answer. A comprehensive shipping policy that covers processing times, delivery estimates, and tracking information serves as a self-service FAQ. Customers can find answers themselves instead of contacting support.
Builds Customer Trust
Professional ecommerce operations communicate clearly about what customers can expect. A detailed shipping policy signals that you take fulfillment seriously and have systems in place to handle orders efficiently. This professionalism builds confidence, especially for first-time buyers.
Protects Your Business
When shipping problems occur—and they will—having documented policies protects you. If your policy clearly states that international customers are responsible for customs duties, you have grounds to decline refund requests for duty charges. If you specify that packages marked as delivered are the customer's responsibility, you reduce disputes over claimed non-deliveries.
Seven Essential Elements of a Shipping Policy
Every effective shipping policy addresses these seven areas. Include each one to cover the questions customers ask most frequently.
1. Processing Times
Customers want to know when their order will actually leave your warehouse, not just how long shipping takes once it is in transit. Be specific about processing time versus shipping time.
Example language:
"Orders placed before 2:00 PM EST Monday through Friday are processed the same business day. Orders placed after 2:00 PM EST or on weekends are processed the next business day. During peak seasons (November through December), processing may take an additional 1-2 business days."
Include any factors that affect processing time, such as custom orders, personalization requests, or items that ship from different locations.
2. Shipping Methods and Delivery Times
List every shipping option you offer with realistic delivery estimates. Be conservative with your estimates—it is better to exceed expectations than to disappoint customers.
Create a clear table or list that includes:
- Shipping method name (Standard, Expedited, Express, Overnight)
- Carrier used (USPS, UPS, FedEx, DHL)
- Estimated delivery timeframe
- Cost or conditions for free shipping
Example format:
Standard Shipping (USPS Priority Mail)
- Delivery: 3-5 business days
- Cost: $7.99 or FREE on orders over $75
Express Shipping (UPS 2-Day)
- Delivery: 2 business days
- Cost: $14.99
Overnight Shipping (FedEx Overnight)
- Delivery: Next business day
- Cost: $29.99
Be honest about what you can deliver. Surveys show that 62% of consumers find an accurate estimated delivery date more important than fast shipping. Customers prefer realistic estimates over optimistic promises that lead to disappointment.
3. Shipping Costs and Free Shipping Thresholds
Eighty percent of shoppers expect retailers to have a free shipping threshold, and 62% will not purchase without free shipping. If you offer free shipping, make the conditions crystal clear.
When setting a free shipping threshold, calculate it strategically. The threshold should be approximately 30% above your average order value. This encourages customers to add items to reach free shipping while ensuring you cover your costs.
Example calculation: If your average order value is $50 and your average shipping cost is $8, a free shipping threshold of $65-75 encourages customers to spend more while protecting your margins.
Explain your shipping costs transparently:
"Shipping costs are calculated based on package weight and destination. Standard shipping within the continental United States ranges from $5.99 to $12.99. Orders over $75 ship free via Standard Shipping."
4. Shipping Restrictions
Not every product can ship everywhere, and not every address type works with every carrier. Spell out any limitations.
Common restrictions to address:
- Geographic limitations (no international shipping, no Alaska/Hawaii, specific countries only)
- Address type restrictions (no P.O. boxes for certain carriers)
- Product-specific restrictions (hazardous materials, temperature-sensitive items)
- Size or weight limitations for certain shipping methods
Example language:
"We currently ship to all 50 U.S. states and Canada. We cannot ship to P.O. boxes for expedited orders, as UPS and FedEx do not deliver to P.O. box addresses. Certain oversized items ship via freight carrier and may have additional delivery requirements."
5. Lost, Damaged, and Delayed Packages
Shipping problems happen. Having a clear protocol documented protects both you and your customers.
Specify:
- How customers should report missing packages
- Your timeframe for investigating shipping issues
- Who is responsible at what point (during transit vs. after delivery)
- Your process for handling damaged items
- What documentation you require (photos, tracking confirmation)
Example language:
"If your tracking shows delivered but you have not received your package, please check with neighbors and building management. If the package cannot be located, contact us within 48 hours at [email protected]. We will file a claim with the carrier and either reship your order or issue a refund once the investigation is complete (typically 5-7 business days)."
"For packages damaged during transit, please photograph the damage to both the packaging and contents and email them to [email protected] within 48 hours of delivery. We will arrange a replacement shipment or refund."
6. International Shipping
If you ship internationally, be extremely clear about customs, duties, and taxes. This is where customer confusion—and complaints—most commonly occur.
Decide and document whether you use:
- DDP (Delivered Duty Paid): You pay customs duties and include them in the product price or collect them at checkout
- DDU (Delivered Duty Unpaid): The customer pays customs duties upon delivery
Most small businesses use DDU because it is simpler to implement, but customers may be surprised by charges. As of August 2025, the United States eliminated de minimis exemptions, meaning duties now apply to all U.S. imports regardless of value. The EU will implement similar changes by July 2026.
Example language for DDU shipping:
"International orders may be subject to customs duties, import taxes, and brokerage fees imposed by the destination country. These charges are the responsibility of the recipient and are not included in our shipping costs or product prices. We recommend checking with your local customs office for estimated charges before ordering."
Example language for DDP shipping:
"For orders shipped to Canada and the EU, all customs duties and import taxes are included in your order total at checkout. No additional charges will be due upon delivery."
List which countries you ship to, expected delivery timeframes for each region, and any products that cannot be shipped internationally.
7. Order Tracking
Customers want to know where their package is. Nearly 73% of consumers want real-time tracking updates.
Explain how customers can track their orders:
"Once your order ships, you will receive an email with your tracking number and a link to track your package. You can also view tracking information by logging into your account on our website. Please allow 24 hours for tracking information to update after receiving your shipping confirmation."
Consider whether you send shipping notifications via email, SMS, or both, and whether you provide proactive updates about delays.
Shipping Policy Template
Use this template as a starting point, then customize it for your specific business:
Processing Time
Orders are processed within 1-2 business days (Monday-Friday, excluding holidays). You will receive a shipping confirmation email with tracking information once your order ships.
Domestic Shipping Options
| Shipping Method | Estimated Delivery | Cost |
|---|---|---|
| Standard (USPS) | 5-7 business days | $6.99 or FREE over $75 |
| Priority (USPS) | 2-3 business days | $12.99 |
| Express (UPS) | 1-2 business days | $24.99 |
International Shipping
We ship to [list countries]. International shipping costs are calculated at checkout based on weight and destination.
- Estimated delivery: 7-21 business days depending on destination
- International orders may be subject to customs duties and import taxes, which are the responsibility of the recipient
Shipping Restrictions
- We do not ship to P.O. boxes for Priority or Express orders
- Certain products cannot be shipped internationally due to regulations
Lost or Damaged Packages
If your package arrives damaged or does not arrive within the expected timeframe, please contact us at [email] within 7 days. Please include your order number and any relevant photos.
Returns
For information about returns and exchanges, please see our [Return Policy].
Best Practices for Displaying Your Shipping Policy
Creating a shipping policy is only half the battle. You also need to ensure customers actually see it.
Place It in Multiple Locations
Link your shipping policy from:
- Your website footer (standard placement customers expect)
- Your main navigation menu
- Individual product pages
- Your shopping cart page
- Your checkout page
Shopify and most ecommerce platforms allow you to add policy links to checkout automatically. Take advantage of this feature.
Use Clear, Simple Language
Avoid legal jargon. Write in the same voice you use throughout your website. Customers should understand your policy without needing to reread it multiple times.
Keep It Updated
Your shipping policy is not a set-and-forget document. Update it when you:
- Add or remove shipping carriers
- Change your free shipping threshold
- Expand or limit your shipping destinations
- Experience predictable seasonal delays
- Adjust processing times
Review your policy quarterly to ensure it still reflects your actual operations.
Highlight Free Shipping Prominently
If you offer free shipping, mention it everywhere—in your header, on product pages, and at checkout. A visible progress bar showing how close customers are to the free shipping threshold encourages them to add more items.
Track Your Shipping Costs Carefully
Creating and maintaining a shipping policy requires understanding your actual shipping costs. Many small businesses underestimate what they spend on shipping because they do not track it systematically.
Monitor these metrics:
- Average shipping cost per order
- Shipping cost as a percentage of revenue
- Free shipping qualification rate
- Shipping-related customer service inquiries
- Delivery success rate by carrier
Tracking these numbers helps you set appropriate free shipping thresholds, choose the right carriers, and identify problems before they become expensive patterns.
Keep Your Finances Organized from Day One
Shipping costs can significantly impact your profitability, especially as your order volume grows. Between carrier fees, packaging materials, handling labor, and returns processing, ecommerce logistics involves numerous expense categories that need careful tracking.
Beancount.io provides plain-text accounting that gives you complete transparency and control over your financial data—essential for understanding your true cost per order. With version-controlled records and AI-ready formatting, you can track shipping expenses by carrier, calculate margins accurately, and make informed decisions about your pricing and free shipping strategy. Get started for free and see why ecommerce businesses trust plain-text accounting for their financial management needs.
