Simple actions to protect your business and limit your exposure to fraud:
Terms & Conditions: Have clear, readable and, most importantly, understandable terms and conditions of sale so that both the buyer and you, are aware of each party’s rights and obligations.
Returns Policy: Have a clear policy on your website which is (at least) compliant with the law. State what you do when there is a problem, how a customer can return goods and the costs involved. It is often not worth the trouble of arguing about returns. If it is in accordance with the policy, accept the return of a product.
Records: Make sure you have a record of each product sold and, if possible, make it unique. If challenged about, say, the quality of the product, you need to know it was purchased from you.
Shopping Platforms: Ebay and Amazon, for example, and others like them have their own returns policies, systems, claims adjudication processes etc.
Insurance: take out business insurance and look at including cover for fraud.
Paypal: Gives sellers certain protection so may be worth considering using as a means of payment.
Unusual transactions: Look out for unusual transactions such as late night orders, high-risk countries, P.O box addresses or hotels/ guest houses, free/ anonymous email addresses, high quantity orders, high value orders etc.
This should not be relied upon for legal advice. If you would like any further information or advice please email email@example.com.