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Understand your eCommerce Website Terms and Conditions

 

An eCommerce Website Terms and Conditions (also known as a Website Terms of Service) acts as a legal contract between you (the company) and the users who make use of your eCommerce website. Think of it as a document which sets out the basic ground rules- protecting your rights against users who may abuse your website and, ensuring that your customers grasp an understanding of your provided service or products. In this blog, we will give you the full rundown of what it takes to draft a Website Terms and Conditions and highlight a few of the most important clauses.

What is an eCommerce website?

By definition, an eCommerce website is an online trading post that allows you to buy and sell products or services online. Once viewed by many as a subsidiary service offered by physical stores, e-commerce websites have rapidly evolved into leading companies and have quickly become a vital extension to even the most simple modern-day businesses. 

From fruit vendors to clothing startups, the internet is now a thriving, demand-driven marketplace for all businesses- no matter their size or products sold. The cyberspace market is not, however, a virtual Wild West and just as quickly as e-commerce sites have evolved, so have our laws and the demands of cautious consumers. 

As an online business owner, you need to be aware of both South Africa’s data privacy laws (which have recently become significantly more stringent) as well as a customer’s perception of your company. Having clear, understandable and legally-sound documentation on your website not only lowers your legal risk but it also increases the customers’ confidence in your business and determines your perceived business values.

There are now countless articles and studies supporting the belief that eCommerce is the future for many industries and without it, your business might easily be left behind. A common mistake we often see, however, and one that should be avoided, is frantically rushing into it. When setting up an eCommerce shop there are three important policies or legal steps that you need and should have displayed on your website.

Namely: A Website Terms and Conditions, a Returns Policy and a Website Privacy Policy.

Table of contents:

  1. What is a Terms and Conditions Policy?

  2. Why do you need a Terms and Conditions Policy?

  3. Basic contents of Terms and Conditions

  4. Over to you

What is a Website Terms and Conditions Policy?

A Terms and Conditions Policy is a document that details, amongst other things, how consumers may use the shop, your rights and responsibilities, that of the seller and the customers, what you are (and are not) liable for, and who customers can turn to if there’s an issue with a sale. It’s basically a set of rules that helps define a relationship between you and your customers. 

As a starting point, the fundamental basis of a set of Terms and Conditions is always the following:

  • What customers can expect of you: Which sets out how you provide your products and/or services;

  • What you expect of your clients: Which establishes certain rules for using your services and products;

  • Your website content: Which sets out the intellectual property rights to the content clients find on your website, and at its very simplest, records whether that is yours or owned by others; and

  • Conflict handling: How you address a problem or dispute with your consumers.

“Independent Contractor Agreement South Africa By Hello Contract

When running a business, it is inevitable that certain services will need to be outsourced to third parties to provide to you or your customers. This is known as using independent contractors or sub-contracting and this relationship is regulated by an Independent Contractor Agreement / Subcontract Agreement.  HelloContract helps you to create an Independent Contractor Agreement that sets the terms between your business and a contracted worker.”

While it is not required by law that your eCommerce store has a set of Terms and Conditions, it is highly recommended that you do so. Typically we use Terms and Conditions, Terms of Service, Terms of Use, Website Disclaimer and T&C’s interchangeable.

Why do you need a Terms and Conditions Policy?

There are a number of reasons why you need a Terms and Conditions Policy. Here are some of the most important ones. 

As Website T&C’s function as a basic playbook for the relationship between you and your visitors, it is an easy way to objectively set your standards and manage expectations for all parties. Furthermore, a T&C’s establishes a form of legal protection for you, it sets rules to prevent site abuse, limit your liabilities and protect your intellectual property.

Here’s a great example of the importance of website T&C’s taken from our local clothing store, Mr Price. Within their Introduction Clause, they clearly highlight the importance of their T&C’s for potential customers regarding their stated provisions.

Read full blog here: https://hellocontract.co.za/understand-your-ecommerce-website-terms-and-conditions/
Location: South Africa

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