Shipping policy: what it must say, with a fill-in template

What a shipping policy must state

A shipping policy is the page that tells buyers when their order will leave, which carriers you use, what shipping costs, where you ship and what you do when something goes wrong. For a US online store, the policy is also where you make the shipping promise that the FTC's Mail, Internet, or Telephone Order Merchandise Rule holds you to.

The rule covers most goods a customer orders from the seller by mail, telephone, fax, or on the Internet. It does not matter how the item was advertised or how the buyer paid. If your policy or product page states a shipping time, you need a reasonable basis for it. If you state no time, the default is 30 days. That default is why the rule is often called the FTC 30 day rule.

A shipping policy that works under the rule covers these points:

• Handling time: how many business days pass between a paid order and the parcel reaching the carrier.
• Carriers and services: who delivers and the expected transit time for each option.
• Costs: flat rate, calculated or free shipping, and any free shipping threshold.
• Where you ship: domestic areas, international countries, and any address types you do not ship to.
• Delays: how and when you tell buyers about a late order, and their right to cancel.
• Refunds for orders that do not ship: how much you refund and how fast.
• Lost, damaged and returned parcels: who files the claim and what the buyer gets.

Rules vary by state and city, and some states add their own consumer protection laws on top of the FTC rule. This page is general information, not legal advice.

The FTC Mail Order Rule in one table

The rule is published as PART 435 of Title 16 of the Code of Federal Regulations, and the FTC explains it in a plain-language business guide. The table lists each requirement that a shipping policy should match.

Handling time: the number your policy promises

Handling time, also called processing time, is the time between a paid order and the moment the parcel is in the carrier's hands. Transit time is what happens after that. Under the rule, shipment means the merchandise is physically placed in the possession of the carrier, so the FTC rule is about handling time. Delivery dates depend on the carrier, and your policy should say they are estimates.

Set handling time from your slowest normal week, not your best one. Made-to-order items, seasonal peaks and supplier lead times all belong in the number. Your evidence for the promise matters. The FTC guide lists the points that support a reasonable basis, starting with Anticipated demand, then supply, your fulfillment system and records of each order.

Be careful with qualifiers. The FTC's own example is a seller who says it ships in 48 hours most of the time: that seller has to ship or send a delay notice in 48 hours all the time. A promise with a hedge is still read as a promise.

If you drop ship or use a fulfillment house, add their time to yours. Asked who is liable when a drop shipper ships late, the FTC answers: The seller is.

Shipping policy template: a fill-in structure

Copy this structure and replace each bracket with your own details. Keep every time you write here at or above what you can meet in a busy week. Delete any block that does not apply to your shop.

1. Handling time: "Orders ship within [number] business days of payment. Made-to-order items ship within [number] business days. Orders placed after [cut-off time] on a business day, or on weekends and holidays, start the next business day."
2. Carriers and transit: "We ship with [carrier] using [service]. Once shipped, delivery usually takes [range] business days. Delivery dates are carrier estimates, not guarantees."
3. Costs: "Shipping is [flat rate of $amount / calculated at checkout by weight and address / free on orders over $amount]. Shipping costs are shown at checkout before you pay."
4. Where we ship: "We ship to [states, territories, APO/FPO, countries]. We do not ship to [exclusions]. International buyers pay any duties and import taxes."
5. Tracking: "You will get a tracking number by email when your order ships."
6. Delays: "If your order cannot ship in the time above, we will email you before that time with a new ship date and the option to cancel for a full refund."
7. Refunds for unshipped orders: "If we cancel an order or you cancel because of a delay, we refund the full amount you paid, including shipping, to your original payment method."
8. Lost or damaged parcels: "If your parcel arrives damaged or tracking shows no movement for [number] days, contact us at [email] and we will [replace the item / refund / file a carrier claim]."
9. Contact: "Questions about shipping: [email or contact page]."

Link the policy from your footer, cart and checkout, and repeat the handling time on product pages where it differs. The FTC guide says updated shipping information you give online supersedes any shipment representation you made in the advertising, so keep checkout times and the policy in step.

Shipping policy example for a small business

Example: a candle shop that makes stock in batches and ships from home with one national carrier. The numbers are assumptions for the example, not recommendations.

"Orders ship within 3 business days of payment. Orders placed after 2 pm Eastern on Friday, or on weekends and holidays, start on the next business day. We ship with one national carrier's ground service; delivery usually takes 2 to 5 business days after shipping. Shipping is $6 per order and free on orders over $50. We ship to all US states and APO/FPO addresses and do not ship internationally. You will get a tracking number by email. If your order cannot ship within 3 business days, we will email you before then with a new date and a link to cancel for a full refund. If we cancel or you cancel because of a delay, we refund everything you paid, including shipping, to your card. If your candle arrives broken, email a photo within 7 days and we will send a replacement."

Each line maps to a point in the template. The refund line matches the rule: a required refund is the entire amount the customer "tendered," including any shipping, handling, insurance, or other costs, and you cannot substitute credit toward future purchases, credit vouchers, or scrip.

What to do when an order will ship late

This is the part of the policy the FTC rule is most specific about. The steps follow the FTC business guide.

1. Decide whether you can ship at all

   If you will never be able to ship, you must promptly cancel the order and make a full refund. If you can ship later, you must seek the customer’s consent to the delay.

2. Send the delay notice in time

   The notice can take no longer than the time you originally promised or, if no time was promised, 30 days. Can it go by email? The FTC answers: Yes. The FTC says an order-status page can back up notification by another means, so do not rely on it alone.

3. Give a new date and a way to cancel

   State a revised ship date. If you cannot give one, say so and give the reason for the delay. Tell the buyer they can cancel for a full refund, and give a way to cancel at your expense, such as a link or reply email.

4. Say what happens if the buyer does not reply

   For a new date of 30 days or less, no reply counts as consent. For a longer or unknown delay, the order is cancelled automatically within the originally promised time plus 30 days unless the buyer agrees to wait.

5. Ask again if you miss the new date

   If you cannot ship by the revised date, you must, before that date, seek the consent of your customers to any further delay with a renewed notice. This time the buyer's silence may not be treated as a consent to delay, so without a yes the order is cancelled and refunded.

6. Refund on time

   Send required refunds within seven working days after cancellation, or within one billing cycle if you extended the credit yourself. Do not swap in a different item: you cannot substitute anything materially different without the buyer's prior agreement.

Shipping policy template on Shopify

Shopify can generate a starting template. The steps are from Shopify's help page on store policies.

1. Open the policies page

   In your Shopify admin, go to Settings > Policies and choose Shipping policy.

2. Insert and edit the template

   Click Insert template to add Shopify's default text, then replace it with your own handling time, carriers, costs and delay terms from the structure above. Shopify notes that you're responsible for following your published policies.

3. Save and check where it shows

   Saved policies are automatically linked in the footer of your checkout pages. The page is also at /policies/shipping-policy on your store domain, which you can add to your footer menu.

Records, exemptions and state rules

The FTC guide says you are not required to keep records, but if you cannot document your systems for shipping on time, you bear the burden of proving you do comply. Keep the order date, ship date, any delay notice and its date, cancellations and refunds for each order. The FTC guide gives the enforcement look-back as three years for consumer redress and five years for civil penalties.

Some sales sit outside the rule: magazine subscriptions (and similar serial deliveries), except for the first shipment; sales of seeds and growing plants, and orders made on a collect-on-delivery basis (C.O.D.). The rule also does not cover services. Digital downloads and custom services may need their own delivery terms.

State consumer protection laws can add requirements, and if you sell on a marketplace, check its seller policies as well. This page is general information about federal rules, not legal advice. Check your state attorney general's consumer protection guidance for the states you sell into.

Where Nation fits

Questions about shipping policies