Terms and conditions for an online shop selling to consumers

An online shop's terms of sale are read by customers when they want a refund, and by regulators to check what the customer was told. The terms have to say when a contract is formed, what the price includes, how cancellation and returns work, what a customer gets for faulty goods, and where the risk sits while a parcel is in transit. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Online shops in England and Wales selling physical goods to consumers through their own website, from a single-product brand to a multi-category store, alongside any marketplace sales governed by the marketplace's rules.

What matters in online shop terms

Orders, acceptance and the information you must give

The Electronic Commerce (EC Directive) Regulations 2002 require the shop to explain the steps to place an order and to acknowledge orders electronically, and the terms should say that a contract is formed when the shop accepts the order by despatch confirmation, not when the customer clicks, so that stock and pricing errors can be corrected. The pre-contract information the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require, including the cancellation right and the model form, must be given before the order and confirmed afterwards, and the company's registered details displayed as the Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 under the Companies Act 2006 require.

Prices, delivery charges and payment

The headline price a consumer sees must include all mandatory charges under the Digital Markets, Competition and Consumers Act 2024, so delivery charges are shown before checkout or as a clear stated extra, and card payments cannot carry a surcharge under the Consumer Rights (Payment Surcharges) Regulations 2012. The terms should say what happens when a price is shown wrongly (the shop may cancel and refund before despatch) and when payment is taken.

Cancellation and returns

A consumer may cancel within fourteen days of receiving the goods for any reason under regulation 30 and must return them within fourteen days of cancelling under regulation 35, with the shop refunding within fourteen days of getting the goods back under regulation 34, including standard delivery charges; the customer pays return postage only if told so before ordering. The terms should say which goods are outside the right (personalised, sealed hygiene items, perishables), that the shop may reduce the refund for handling beyond what a shop would allow, and how to cancel. A returns policy more generous than the law is a marketing choice the terms should describe separately.

Faulty goods and the consumer's rights

Under the Consumer Rights Act 2015 goods must be of satisfactory quality, fit for purpose and as described, with a short-term right to reject within thirty days under section 22, then repair or replacement, then price reduction or final rejection, and the shop cannot exclude those rights. The terms should describe the process for reporting faults, say that the shop pays return costs for faulty goods, and that the rights do not cover fair wear, misuse or damage after delivery.

Delivery, risk and data

Goods remain at the shop's risk until the consumer receives them under section 29 of the same Act, so the terms should say that a parcel lost in transit is replaced or refunded, that delivery times are estimates, and what happens when a delivery fails through a wrong address or non-collection. The terms should refer to the privacy notice for the data collected at checkout and to any marketing consent, which must follow the Privacy and Electronic Communications (EC Directive) Regulations 2003.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A customer wore the dress and then returned it within fourteen days. Do we have to refund?

The customer can cancel within fourteen days, but the shop can reduce the refund where the goods have been handled beyond what is needed to establish their nature and characteristics, and the terms should say so. Wearing it is more than trying it on.

A parcel was marked delivered but the customer says it never arrived. Whose loss?

The shop's, until the goods are in the consumer's possession. The terms can require a signature or a safe place instruction, and the shop claims against the carrier, but the consumer is refunded or resupplied.

Can we charge a restocking fee on returns?

Not on a cancellation within the fourteen days, beyond a deduction for excessive handling. Restocking fees belong to a separate goodwill returns policy, if you offer one, outside the statutory right.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a clothing brand selling online

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.