5 Legal Documents Necessary to Bind your eCommerce Business

E-Commerce is thriving. The global market size is predicted to reach $4.9 trillion by 2021. In the US alone. eCommerce counts for 10% of retail sales. That number is expected to grow by 15% each year, luring in more and more entrepreneurs every day. 

While the online blogs make it look like eCommerce is as easy as setting up a blog, there is a lot that's happening behind the curtains. Most up and coming businesses focus on getting the logistics, and that is, undeniably, the most significant part. 

However, with the market growing exponentially every second, you also need to protect your company legally. Below you will learn about top 5 essential legal documents that business owners need to establish before the  launch of website. For other legal needs of your ecommerce business, find necessary contracts and get your templates with with Prospero.

1. Terms and Conditions 

For any business, Terms and Conditions is the first legal document to be finalized. Even if you are launching only an app to connect to your customers, T&Cs are strongly recommended by the legal experts at Prospero. Though not mandated by law, this agreement provides a layer of protection for your business. 

A T&C generally summarizes what your business is, how you intend to use the website and sets out your rights on all your published content. For an eCommerce in particular, T&Cs are exceedingly imperative for the following reasons. 

• They protect your Intellectual Property. 

• They allow you to withdraw services to accounts that do not comply with your terms. 

• They build trust between your company and its clients. 

• They set your usability of payment gateways with credit card operators. 

Additionally, T&Cs are also of significance in case of a dispute. It is best to get this document in order, as neglect could cost your reputation as well as finances. 

2. Privacy Policy 

Every single website collects data about their ways in a number of ways. For eCommerce services, this is of further significance as the data such as email addresses, session activity, and email addresses, to name a few, could be used to retarget your customers for marketing. 

A privacy policy is a document obligated by law, made between the website and its users. The document outlines how you collect, keep, use, share, and protect your users' data. Such privacy statements, when done right, will offer your clients a clear picture of your data policies and keep them reassured while availing your services. 

3. Cookie Policy 

For those who are unfamiliar with the term "cookie" in the context of the internet, cookies are messages of information that web servers pass to your browser when you visit websites. Ecommerce websites use them in order to save your login details, keep track of customers' preferences, enable shopping-cart, or e-billing services. 

Similar to the privacy declaration, a cookie policy establishes the website's requirements without disabling the users' legal rights. Depending on your geographic location, a cookie policy might be required by law. Regardless, it is in your best interest to draft one. 

4. Return Policy 

A return policy might make a marginal difference in your customers' experience with your brand. For 80% of consumers, an inconvenient return policy is a daunting aspect. A thoroughly drafted return policy is vital to manage the expectation of your clients. It could also be the key to convert a prospective client to a long-term customer. 

E-commerce businesses should prioritize setting up their return policies along with logistics to ensure that it is fair to both parties.  

5. Warranty Policy

Depending on the types of products and services you offer, a warranty policy might also be vital for your business. A warranty serves as product insurance placing a certain guarantee to the customer in written form. It has an overview of terms and conditions in which repairs or exchanges would be made in case the product does not function as described initially. 

The warranty and guarantees could be incorporated into your Terms of Use, but the customers might find it helpful if it was available separately. 

These legal documents will ensure that your e-commerce store is legally protected from risk. Make it a point to display these where customers can easily access them, so they are aware of your terms and policies.