Return policy guide (with a free template)

Running an online store comes with legal responsibilities, especially around returns and refunds.

This article will provide a complete guide to writing a return policy that aligns with regulations in the EU, UK, and the US.

What is a return policy?

A return policy is a set of guidelines that helps a business to manage returns or refunds. It defines when a customer can return an item, the timeframe within which returns are accepted, the process to request a return or refund, etc.

Having a clear return policy helps simplify the return process and gives your customers an exact idea of what they can expect when they buy from you.

Is a return policy legally required?

If you sell online, a return and refund policy is a must-have: most countries’ industry regulations require stores (even digital ones) to have an agreement to inform users about their policy on returns and refunds.

For example, in the EU not having a return policy can expand the right of withdrawal from 14 days to 1 year and 14 days. Also, you’ll have to pay the return shipping costs for EU customers.

In the US, not having a clear return policy can result in legal complications and damage your brand reputation.

What to include in a return policy

Your return and refund policy should include at least the following sections:

• Timeframe for return: how long do your clients have to return the products? This usually falls between 14 and 30 days.
• Condition of return: what condition the products should be in when they’re returned. As a general rule, products should be unused, in their original packaging, and with all tags attached.
• Shipping cost: let your clients know who’s responsible for the shipping costs.
• Refund method: how you’ll issue refunds, whether through the original payment method, as store credit, or as an exchange.
• Exceptions and exclusions: what items aren’t eligible for return, like final sale items, custom-made products, or perishable goods.
• Contact information: this is so customers can reach out with any questions or issues related to their return.

How to write a return policy

To write a return policy, cover the essentials your customers need to know: the timeframe for returns, the condition items must be in, who pays return shipping, how you issue refunds, any exceptions (like final-sale or custom items), and how customers can reach you. Keep the language clear and specific to your business. Our free return policy template below is a good starting point. To best protect your business, we recommend generating a complete Terms and Conditions document with your return terms built in.

Where to put a return policy

Make sure that your return and refund policy is easy to find on your website so that customers see it before they buy. A few key places to list this policy include:

• your website footer,
• FAQ page,
• product page,
• cart,
• checkout.

Please note that you could add the return policy in your Terms and Conditions rather than having a separate agreement.

Return policy template

Please be aware that what we provide is a standard template structure. Depending on your business structure, the product you offer, and your location, you may need to modify clauses or include additional details to comply with legal standards.

Examples of return policies

Looking for return policy examples? Below are return policy examples from different types of business, showing how the essentials come together.

Small business return policy example

The return policy of a small business can vary a lot depending on what kind of business it is, what products it sells, and who its customers are. Use the sample return policy for small business below as a starting point, then adapt it into your own template.

For instance, a small e-commerce business might let you return items within 30 days for a full refund, while a local artisanal shop might only offer exchanges or store credit. Sometimes, small businesses might also have a no return, no refund policy (also called a “final sale” policy) on their products, meaning that items can’t be returned.

Boutique return policy example

A boutique return policy usually reflects the personalized and customer-focused nature of small, independent shops.

In a boutique setting, the return policy is often flexible and customer-focused, while also protecting the business from excessive returns. For example, a boutique might let you return items within 14 to 30 days of purchase, as long as they’re in their original condition and packaging with tags attached. The policy might also include options like store credit or exchanges instead of full refunds, especially for items on sale or custom orders.

SaaS business return policy example

SaaS businesses usually have a return policy based on subscription terms and refunds for digital products.

Since SaaS products are often delivered instantly and used immediately, some companies have a limited refund period, like offering refunds within the first 7 days of a subscription if the customer is unsatisfied. Some SaaS companies might also have rules about trial periods, cancellations, and things like setup fees or custom integrations.

Returns and refunds in the EU and UK

Online, mail and telephone order customers have the right to cancel their order for a limited time even if the goods are not faulty. Here are the rules:

• You must offer a refund to customers if they’ve told you within 14 days of receiving their goods that they want to cancel. They don’t have to give any reason.
• Customers have another 14 days to return the goods once they’ve told you.
• You must refund the customer within 14 days of receiving the goods back.

Returns and refunds in the US

In the United States, laws surrounding return and refund policies can vary by state. However, it’s a good practice to offer a clear and concise policy. A 30-day return policy is often considered standard.

Return shipping costs

• Usually, EU consumers have to pay for the return shipping costs, but this is something you must inform them about before the purchase.
• In the UK, return shipping costs are borne by consumers, unless sellers have stated otherwise. Also, you must take back at your own expense the goods that, by their nature, cannot normally be returned by post.
• In the US, it’s common for customers to pay for return shipping unless the item is defective or the wrong item was sent.

Exceptions to refund policies

Common exceptions vary by region. In the EU and UK, some purchases are excluded from the legal right to cancel; in the US, retailers commonly exclude:

EU and UK	US
Perishable goods	Perishable items
Personalized items and custom-made items	Gift cards
Services that have been fully performed	Downloadable software
Newspapers and magazines	Health and personal care items
Culture and sports events
Trips and accommodations

Return policy FAQ