Return Policy Template With Examples (US and UK Rules)

A return policy template gives you ready-made wording for how long customers have to return items, what condition goods must be in, how refunds are paid and who covers shipping. A good policy is short, specific and easy to find before purchase. It also has to sit within the law: some US states require you to post your policy, and UK online sales carry a 14-day cancellation right no matter what your policy says. Below are copy-ready examples for online stores, physical shops and service businesses, plus the legal minimums and how to record refunds on your invoices.

This is general information, not legal advice. Consumer protection rules vary by state and country, so check with a local adviser if you sell in many places.

What a return policy template should cover

• Return window: how many days from purchase or delivery.
• Eligible items: condition (unused, with tags, original packaging) and exclusions (final sale, perishables, personalized goods, intimate items, gift cards).
• Proof of purchase: receipt, order number or invoice.
• Refund method: original payment method, store credit or exchange.
• Refund timing: how quickly you process after receiving the item.
• Return shipping: who pays, prepaid labels, and how to send items.
• Fees: restocking fees, if any, as a dollar amount or percentage.
• Damaged or wrong items: how to report and what you will do.
• Contact: email or form to start a return.

US return policy laws you need to know

There is no general federal requirement to accept returns of non-defective goods in the US. The main legal obligations come from state disclosure laws, warranty law for defective products, and card network rules that make an unclear policy a chargeback risk.

Jurisdiction	Rule	If you fail to comply
California (Civil Code 1723)	If you do not give a full cash refund, credit or equal exchange for at least 7 days after purchase (with proof of purchase), you must conspicuously post your policy at registers, entrances, on item tags or on order forms	Buyer can return goods within 30 days for the purchase price
New York (General Business Law 218-a)	Retailers must conspicuously post their refund policy, including conditions, time limits, cash or credit, and any fees; online sellers can show or link it before billing information is requested	Buyer may get a cash refund or credit, at their option, within 30 days for unused, undamaged goods with proof of purchase
Other states	Several states have their own disclosure rules	Varies; check your state attorney general's site

California exempts some goods from the posting rule, including food, plants, flowers and other perishables, goods marked "as is" or "all sales final," customized goods received as ordered, items used or damaged after purchase, items not returned in original packaging, and goods that cannot be resold for health reasons. You can read the text of New York General Business Law 218-a on the state senate site.

UK return rules for online sellers

If you sell to UK consumers online, by phone or by mail order, the Consumer Contracts Regulations give customers the right to cancel within 14 days of delivery without giving a reason, as explained in the GOV.UK online and distance selling guidance. If you fail to tell customers about this right, the cancellation period can extend by up to 12 months. Customers then have 14 days to send goods back, and the refund is generally due within 14 days. Some goods are excluded, such as personalized items and perishable goods, and the rules do not apply to sales of £42 or less. Your own policy can be more generous, never less.

Return policy template examples

Example 1: Online store (30 days)

Returns. You can return most items within 30 days of delivery for a full refund. Items must be unused, in original packaging, with tags attached. Final-sale items, gift cards and personalized products cannot be returned.

How to return. Email [address] with your order number. We will send a return label. Return shipping is free for exchanges; for refunds, $6.95 is deducted from your refund to cover the label.

Refunds. We inspect returns within 3 business days of receipt and refund to your original payment method. Your bank may take 5-10 business days to show the credit.

Damaged or incorrect items. Contact us within 7 days of delivery with a photo, and we will replace the item or refund in full, including shipping.

Example 2: Physical retail shop

Full refund to the original payment method within 14 days of purchase with a receipt. Exchange or store credit within 30 days with a receipt. No refunds on sale items marked "final sale." Opened cosmetics and earrings cannot be returned for hygiene reasons. A copy of this policy is available on request.

Example 3: Service business or digital product

Because our work is customized, payments for completed services are non-refundable. If you cancel before work starts, we refund your deposit minus a $50 administration fee. If you are unhappy with a deliverable, tell us within 7 days and we will revise it at no charge, up to two rounds. Digital downloads are non-refundable once downloaded, except where the file is faulty.

Restocking fees, exchanges and store credit

Restocking fees are common for large, bulky or special-order goods, often 10% to 25% of the item price, to cover inspection, repackaging and loss of value. If you charge one, state the amount in the policy and at checkout, apply it only to non-defective returns, and waive it when you shipped the wrong item. New York's statute specifically requires posted policies to disclose fees such as restocking fees.

Exchanges are cheaper for you than refunds because you keep the sale. Many stores offer free exchange shipping but charge for refund returns, which nudges customers toward an exchange without blocking refunds. Store credit works well for returns after the main window, but if a customer is entitled to a refund under your policy or the law, do not force credit on them.

Return policies for B2B sales and invoices

Business customers buying on account need the return terms in writing too, usually in the quote, order confirmation or invoice terms. Spell out who authorizes returns (a return merchandise authorization number), the window, the condition required, whether freight is credited, and how the credit appears: as a credit note against the open invoice, or a refund if the invoice is already paid. Consumer protection statutes mostly do not apply to B2B sales, so your contract terms carry more weight.

How to write your return policy step by step

1. Check your margins. Estimate return rates and costs (shipping, inspection, unsellable items) before picking a generous window.
2. Choose a window and say whether it runs from purchase or delivery. Delivery is fairer for online orders.
3. List exclusions clearly.
4. Decide on shipping costs and any restocking fee, and state them in dollars or percent.
5. Set refund timing you can actually meet.
6. Publish it everywhere it matters: product pages, checkout, footer, receipts, invoices and order confirmation emails. For in-store sales, post it at the register.
7. Align it with your shipping policy; our shipping policy template covers delivery times and lost parcels.

Worked example: processing a partial return

This is an illustrative example. A customer in a state that does not tax separately stated shipping (8.25% combined sales tax rate in this example) buys three items from an online store on invoice #2026-0418:

• Jacket, $120.00
• Scarf, $35.00
• Gloves, $25.00
• Subtotal $180.00, sales tax at 8.25% $14.85, shipping $8.00, total $202.85

She returns the jacket within 30 days, unused. The policy says refunds exclude original shipping and deduct a $6.95 return label. The store issues credit note #CN-2026-0051 referencing invoice #2026-0418:

• Jacket returned: $120.00
• Sales tax refunded on jacket: $9.90
• Less return label: -$6.95
• Total refund: $122.95 to the original card

The original invoice stays unchanged; the credit note documents the return and keeps sales tax records right. Our credit note guide explains numbering and layout, and you can check tax amounts with the sales tax calculator. Whether sales tax applies to shipping charges depends on the state; see sales tax on shipping.

Common return policy mistakes

• Hiding the policy. A policy customers never saw is hard to enforce and invites disputes.
• Vague promises. "Hassle-free returns" without a time limit is a commitment you may regret.
• Slow refunds. Customers who wait weeks often file a card dispute. Our guide on how to handle chargebacks shows how a clear, accepted policy helps you win.
• Different policies in different places. Website, receipts and invoices must match.
• Ignoring faulty goods. A "no returns" policy does not remove legal rights for defective items.
• Editing original invoices. Always issue a credit note instead.

Put the policy on your invoices and receipts

A one-line summary on every invoice or receipt, such as "Returns accepted within 30 days of delivery. Full policy at [URL]," reminds customers of the rules at the moment they matter. You can include that line in the notes of your invoice terms and conditions. If you sell through your own site, our guide to ecommerce invoices for Shopify and WooCommerce covers where policies appear in order emails.

Need a clean invoice or credit note for a return? Use our free invoice generator: no sign-up, add your return terms in the notes, and download it as a PDF in under a minute.