What are Terms & Conditions?

A “Terms & Conditions” (also called a “Terms of Service” and “Terms of Use”) is a document that explicitly sets out the boundaries and expectations of all parties involved in your ecommerce site: the code of conduct you expect visitors to adhere to if they want to browse your website or purchase your products, and the roles and responsibilities they can expect your business to fulfill. Think of it as a general set of rules that will govern your relationship from beginning to end.

We’ll talk at greater length about the topics it covers below; but broadly, you can expect your Terms & Conditions to cover topics such as ownership of site content, acceptable and unacceptable uses of the site, owner accountability, payment methods and terms, guarantees and warranties, disclaimers, limitations of liability, dispute resolution procedures, account termination procedures, and more… as well as some of the topics we’ve already covered in this content (shipping, returns, privacy).

Why Do I Need Terms & Conditions?

As you can probably tell based on the list of topics it covers, there are plenty of reasons to offer a Terms of Service on your ecommerce website.

These reasons extend far beyond transparency and prospect trust—though let’s be honest, prospect trust should be reason enough to offer them. A Terms & Conditions can save you time, money, and headaches by addressing all possible issues at the outset.

It clarifies your business practices, protects your intellectual property (along with your site and your service), and limits your liability.

What Should My Terms & Conditions Include?

The specifics will be unique to your offering and operations, but there are some basic elements that every ecommerce Terms of Service should cover. The following is not an exhaustive list! Review the T&Cs of competitor sites to uncover other elements specific to your industry.

With that recommendation, there are a few things to keep in mind. While your Terms & Conditions needs to be comprehensive, it should also be as clear and concise as possible. Make it user-friendly for anyone who does take the time to look at it

Conditions of use

The conditions of use—which you should open with—serves a few purposes. In the first place, it identifies you: You’ll state your company’s legal name and address, your country of registration, your registration number, and/or your tax details (Sales Tax ID number, VAT number etc.).

Product information and warranties

n this clause, you’ll describe how products can be purchased, what restrictions there are to purchase (age restrictions, for example), and what happens in the event that you can’t supply a product. This is also an appropriate place to include warranty information if you provide one—though depending on the nature of your products, you may offer a separate warranty policy.