Key Terms and Conditions for Online Stores

If you run an online store in England and Wales, you must have a terms and conditions document that explains vital information to your customers, such as your delivery and refund terms. This document is also known as terms of sale or terms of supply. This article will explain the key terms and conditions you need for your online store to ensure it operates smoothly.

Product, Pricing and Payment Information

Product Information

If you are selling physical products through your online store or e-commerce site, this section of your terms would include important information about your goods and product descriptions. For example, you might have a clause explaining that product packaging can vary from pictures shown on your website. In addition, if you run a business where measurements are essential, for example, if you make custom picture frames or curtains, you would want a clause stating that it is the customer’s responsibility to ensure the measurements they have given you are correct.

Pricing Information

Pricing information should be clearly included on your website for each product that you sell. However, it is a good idea to include a clause as to what you will do if you have accidentally included an incorrect price on your website. For example, if you advertise a computer for sale at £100 when the correct price is £1,000, this clause will clarify that you have not accepted the customer’s order and have not formed a contract with the customer. Instead, you can contact them with the correct price and ask them if they wish to proceed with the order.  

Payment Information

In addition to product and pricing information, you should include payment information in your general terms and conditions. You should explain all the methods of payment that you accept. Likewise, if you are using a third party to process payments or provide ‘buy now, pay later’ solutions, you should identify them in this section.  

Delivery Information

You should outline clearly to your customers what they can expect when they order from you. For example, you should tell them how long it will take them to receive their order and the delivery cost involved. You should also include a statement limiting your business’ liability around delays or other issues not within your control.

If you sell digital goods like ebooks, you should explain how the customer will get the content they have ordered for you. For example, if a customer orders an ebook from you, you could explain that they will receive the ebook via email or be sent information on how they can download their ebook as soon as you have accepted their order.

Dealing with Problems: Returns and Refunds

There will always be situations where a customer wants to return the goods they have ordered or want a refund. Perhaps the item they ordered is faulty or arrived damaged, or they have changed their minds.

If the product is faulty, your customer is entitled to a refund within 30 days of their order. After that period, you should repair or replace the item. If that is not possible, you must refund your customer.  

For most goods, customers also have the right to change their mind about the order they made for 14 days and are entitled to a refund for these goods. As an online business, you need to clarify to your customers that they have this right, and your terms and conditions should incorporate a return policy that explains how you will refund customers and any reasonable deductions that you may make. For example, if you had to arrange to collect the item from the customer, you may want to deduct that from any refund to the customer.

This right may not apply if, for example, you sell sealed hygiene products that you cannot resell once opened. If your business does sell products like this, include a clear statement in your terms and conditions to explain situations where customers cannot change their minds and receive a refund. 

Other Information You Should Include 

Other information that you must include in your terms and conditions includes:

• information about your company;
• how customers can contact you;
• how you contact a customer in the event of any query with their order; 
• who you sell to; and 
• where in the world you sell to.

For example, if you only sell to UK-based customers, you should state that. If you only sell to adults, you need a clause confirming this. It is also a good idea to include links to your other essential policies, including your privacy policy and your cookie policy and your e-commerce site terms of use.

Key Takeaways

If you are running an online store in England and Wales, you must have effective terms and conditions that are clear. Having these terms and conditions in place will help you avoid issues with customers and clarify how you will deal with any problems that do arise. Some of the critical clauses in your terms and conditions should cover:

• product, pricing and payment terms;
• delivery information;
• returns and refunds; and
• essential information about your company and who you will supply.

If you need help with writing your online store’s terms and conditions, our experienced e-commerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions