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Think
of your terms of service (TOS) as a contract and guideline for
your online auction transactions. It's a way to inform customers
of what they can expect if they bid on and win one of your
auction items. It provides important information such as how you
handle payment, shipping, refunds, and more. Our tip outlines
what you should include in your TOS--and where.
The
Three Cs
First, be clear, concise, and comprehensive when stating your
terms of service. Of course, you want to include all the
relevant information, but don't make your TOS so long and
rambling that buyers' eyes start to glaze over--after a certain
point, they'll tune out. Don't force users to sift through
excess verbiage before you reach the heart of the matter.
Remember: Lengthy, tome-like terms of service potentially can
turn off bidders.
What
to Include
To follow is a rundown of the information that should be
included or addressed in your terms of service:
Payment: How do you handle
receiving and processing payment from buyers? Indicate which
types of payment you accept or don't accept (credit cards,
personal check, money order, cashier's check, C.O.D., etc.).
Third-party processors are becoming increasingly commonplace. Do
you accept payment through a company such as X.com/PayPal?
Depending on the type of payment a buyer sends, state whether
you'll hold an item for a specific number of days. (For example,
will you hold merchandise for a certain period of time until a
check clears? Will you ship immediately with credit card or
money order purchases?) You also might indicate how long you
will hold a buyer's item, after which time you will no longer
honor the winning bid.
Shipping: What can the buyer
expect in terms of shipping? First and foremost, indicate who is
responsible for payment of shipping costs: you or the buyer? If
possible, state the exact shipping charge (i.e., "$2.25
shipping for USPS standard"). You might consider offering
buyers different shipping options (for instance, if they'd like
next-day shipping indicate that you'll accommodate them, and who
will be charged for the additional cost). Other important
clarifications include whether you are willing to ship
internationally, whether you will purchase insurance at an
additional charge, and whether you charge handling fees.
Returns/Refunds/Guarantees:
What is your policy on buyers who request returns, refunds,
and/or guarantees? This is a tricky area. Some sellers will
state their policy in their TOS (some using the "all sales
final" disclaimer), while others won't because they believe
that stating they offer refunds will encourage some bidders to
take advantage of their policy. Either way, you should have a
set policy regarding these issues even if you decide not to
include them in your TOS. Be ready and have consistent policies
in case a buyer inquires about them. (For more information on
this topic, see our offering
refunds and guarantees tip.)
Sample
TOS
So what does a good TOS write-up look like? There are different
ways to present your terms of service--there's no right or wrong
way. Experiment and come up with a description that makes you
comfortable. To demonstrate, here's one example:
Buyer to pay $2.50 shipping/handling
for standard USPS delivery. For USPS Priority, include an
additional $1. I accept money orders, cashier's checks,
personal checks, and credit cards via X.com. Immediate
shipping with credit card and money order/cashier's check.
Merchandise paid by check will not be shipped until five days
after deposit. Insurance optional at 85 cents. International
orders accepted. Payment due within 14 days after close of
auction.
Here,
There, Everywhere
Many auction sites now allow you to indicate certain terms of
service when listing an auction. For example, there are fields
in which you can indicate whether the buyer pays for shipping,
whether you accept credit cards, and so on. However, don't rely
solely on these fields.
For starters, you're limited as to
what exactly you can indicate. In order to fully state your TOS
and to provide potential buyers with multiple areas to see them,
you also should include your terms of service in your auction
description. Furthermore, it's a good idea to include your TOS
in your end-of-auction emails as well. One last cautionary note:
In your auction description, do not include a URL to a
subsequent page (an About Me-style page, for instance) that has
your terms of service. Don't assume that buyers will take the
time to click on the link.
Lastly, sellers often complain about
buyers who don't fully read their TOS (the problem of receiving
bids from international buyers when a seller states they ship
only domestically seems to be a perpetual issue). You can't
always be sure that a buyer reads your TOS, but if you state
them clearly, concisely, and in multiple places you at least can
be assured that you've covered yourself if any problems arise.
Back to Auction tips &
tactics
by Vendio Services
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