What is a refund policy and why do you need one?

A refund policy tells your customers exactly when and how you'll accept returns or give refunds. It's your rulebook for handling situations when things don't go as planned.

Why it matters:

• Protects your business from unreasonable return requests
• Builds customer trust by being upfront about your terms
• Required by law in many places
• Reduces disputes and chargebacks

What to include:

• Time limit for returns (7 days, 30 days, etc.)
• What condition items need to be in
• Who pays return shipping
• How you'll process the refund
• What items can't be returned (custom work, digital downloads, etc.)
• How customers should contact you

Questions to ask yourself when creating your policy

How much risk can you handle? More flexible policies attract customers but cost you more in returns and shipping.

What's your turnaround time? If you make custom pieces that take weeks, you'll need different terms than someone dropshipping.

What can't you take back? Think about hygiene, customization, or perishable items that make returns impossible.

How will you handle damaged items? Decide if you'll replace, refund, or offer store credit.

What's your customer service style? Match your policy to how hands-on you want to be with problem-solving.

Common situations and how to handle them

Customer changes their mind: Set clear time limits and condition requirements. "Returns accepted within 14 days of delivery for unused items in original packaging."

Item arrives damaged: Always replace or refund damaged items. "We'll send a replacement or full refund for any items damaged during shipping."

Custom or personalized items: Be upfront that these can't be returned unless there's an error on your end. "Custom orders can't be returned unless we made a mistake."

Digital products: Make it clear these sales are final. "All digital downloads are final sale."

International orders: Address customs fees and return shipping costs. "International customers are responsible for return shipping and any customs fees."

Tips for writing your policy

Be specific, not vague. Say "14 days" instead of "reasonable time frame."

Use plain English. Skip legal jargon. Write like you're talking to a friend.

Lead with what you will do. Start with "We accept returns" before listing restrictions.

Be fair but firm. Protect your business while treating customers right.

Update as you learn. Your first policy won't be perfect. Adjust based on real situations.

Examples

Flexible approach (jewelry maker): "Not happy with your order? Return it within 30 days for a full refund. Items should be in original condition with tags attached. You cover return shipping ($5-15 depending on location), and we'll process your refund within 3 business days. Custom engraved pieces can only be returned if we made an error."

Strict approach (print seller): "All sales are final due to the custom nature of our prints. We only accept returns for damaged items or printing errors. Contact us within 7 days of delivery with photos, and we'll send a replacement. No returns for customer mistakes or change of mind."

Middle ground (clothing brand): "Return unworn items within 21 days for store credit or exchange. Original shipping costs aren't refundable, and you pay to ship items back. Sale items and custom orders are final sale. Email us first to get your return started."

Migrating your shop policies

Already have a refund policy on a custom page? Move it to the new policy field instead. Here's why:

• We create the policy page automatically
• It shows up consistently in your shop footer
• Customers can find it easily
• You get an active policy indicator in your admin

To migrate:

1. Copy your existing policy text from your custom page
2. Paste it into the Returns and refunds field in Shop preferences
3. Delete the old custom page
4. Save your changes

Managing your policy

Edit anytime: Change the text and click Save. Updates appear immediately in your shop.

Check if it's active: Look for the policy tag in your admin that shows if you have an active refund policy.

Preview your policy: Click the preview button to see how it looks in your storefront.

Delete if needed: Click "Delete policy" to remove it completely. This wipes the policy and removes the page from your shop.

Switch back to custom pages: You can always move your policy to a custom page if you want more control over formatting.