Return and Refund Policy for an Online Store in India: How to Write It
A clear return and refund policy builds trust, cuts disputes and is often needed for payment gateway approval. Here is what to include and how to write it.
- A return and refund policy tells buyers when they can return an item, how to request it, and how and when they get their money back.
- Include: return window, eligible and non-returnable items, condition of items, how to raise a request, who pays return shipping, refund method and timeline, COD refunds, cancellations and contact details.
- Payment gateways often ask for this page. Razorpay's documentation, for example, lists a Cancellation and Refunds policy among required website pages.
- Write it in plain words, link it in your footer and checkout, and follow it every time.
You have set up your online store, and now your payment gateway asks for a "Refund Policy" page. Or a customer messages you asking, "Can I return this?" and you do not have a clear answer.
A good return and refund policy solves both problems. This guide shows you what to include, gives you a simple structure you can adapt, and lists the mistakes that cause disputes.
Why your store needs a return and refund policy
- Payment gateway approval: gateways review your website before activating payments. Razorpay's business website guide lists six pages: shipping policy, contact us, pricing details, terms and conditions, privacy policy, and cancellation and refunds policy.
- Customer trust: new stores have no reviews yet. A clear policy tells buyers they will not be stuck with a wrong item.
- Fewer arguments: when rules are written down before purchase, you can point to them calmly.
- Legal duties: consumer law expects sellers to share return, refund and grievance information and not to refuse refunds the law requires.
If you are still setting up payments, read our guide on adding a payment gateway to your online store.
What to include in your return and refund policy
| Section | What to say |
|---|---|
| Return window | How many days after delivery a buyer can request a return |
| Eligible items | Which products can be returned or exchanged |
| Non-returnable items | Items you do not take back, and why (hygiene, custom-made, clearance) |
| Condition | Unused, with tags, in original packaging |
| Damaged or wrong item | How to report it, what proof you need (photos, unboxing video) |
| How to request | Exact steps: WhatsApp, email or order page |
| Pickup or self-ship | Who arranges the courier and who pays |
| Refund method | Original payment method for prepaid orders; bank or UPI for COD |
| Refund timeline | When you start the refund after receiving the item, and that banks may take extra days |
| Exchanges | Whether size or colour exchanges are allowed |
| Cancellations | Before dispatch, after dispatch, and if you cancel |
| Contact and grievance | Name, email, phone and business address for complaints |
How to write your policy step by step
Step 1: Decide your rules before you write
Sit down with your product list and answer these questions:
- How many days do you want to allow for returns? Pick a number you can actually handle with your courier.
- Which items can never come back? For a fashion store, this may be innerwear and items marked "final sale".
- Will you offer exchange only, refund only, or both?
- Who pays for return shipping if the buyer simply changed their mind?
- How soon after the item reaches you will you check it and start the refund?
Step 2: Write in plain, short sentences
Your buyer may read this on a phone, maybe in a hurry. Avoid long legal paragraphs. Use headings and short lines, like this:
Returns: You can request a return within [X] days of delivery. Items must be unused, with original tags and packaging.
Not returnable: Innerwear, customised products and items marked "Final Sale".
Damaged or wrong item: Message us within [X] hours of delivery with photos of the product and package. We will arrange a replacement or refund.
Refunds: Once we receive and check the item, we start your refund within [X] working days. Prepaid orders are refunded to the original payment method. COD orders are refunded by UPI or bank transfer to the details you share.
Fill the brackets with your own numbers. Do not leave placeholders on the live page.
Step 3: Cover cash on delivery clearly
COD buyers often worry about refunds the most. Say exactly which details you need (UPI ID, or account number and IFSC) and how you will confirm the transfer. Never ask for passwords, OTPs or card PINs, and say so in the policy, so buyers can spot scammers who pretend to be you.
High COD returns hurt small stores. Our guide on reducing COD returns (RTO) covers ways to cut them before they happen.
Step 4: Add a cancellation section
- Before dispatch: most stores allow free cancellation.
- After dispatch: explain whether the buyer can refuse delivery, and how a prepaid refund works then.
- If you cancel: for example, when an item is out of stock, say that you will refund the full amount.
Step 5: Add contact and grievance details
List a real name or designation for complaints, an email, a phone or WhatsApp number, and your business address. Consumer protection rules expect sellers to provide a way to raise grievances, so check the current requirements with your adviser.
Where to show your policy on the store
- Footer: a "Return and Refund Policy" link on every page.
- Product page: a one-line summary near the Buy button, such as "7-day easy returns" or "Not returnable", matching your actual rule.
- Checkout: a link next to the order button.
- Order confirmation: include the link in your confirmation message or email.
For clothing stores, a clear size chart reduces size-related returns. See how to make a size chart for your store.
Common mistakes to avoid
| Mistake | Why it hurts | Better approach |
|---|---|---|
| Copying another store's policy | Promises you cannot keep | Write rules that match your products and courier |
| Vague words like "refund soon" | Buyers keep messaging and complaining | Give a clear number of working days |
| Hidden non-returnable items | Feels unfair after purchase | Show it on the product page too |
| Different rules on different pages | Confuses buyers and gateway reviewers | Keep one policy and link to it everywhere |
| "No refunds under any condition" | Can conflict with consumer law for defective or wrong items | Allow refunds or replacements for genuine problems |
| Not following your own policy | Damages trust and invites complaints | Treat the policy as a promise |
Return and refund policy checklist
- Return window stated in days.
- Returnable and non-returnable items listed.
- Steps to request a return explained.
- Return shipping cost explained.
- Refund method and timeline for prepaid and COD.
- Cancellation rules.
- Contact and grievance details with business address.
- Linked in footer, product page and checkout.
- Last updated date at the top.
- Reviewed by a CA or lawyer.
Final word
A return and refund policy is not just a page for your payment gateway. It is a promise to your buyers. Keep it short, specific and fair, and follow it every time. That is how a new store earns trust without reviews.
Next step: write down your answers to the five questions in Step 1, then draft your policy page today. If you are building a store from scratch, look at the store demo and our Meesho-style shopping store script, and read our guide on starting a Meesho-style store with COD.
Frequently asked questions
Is a refund policy required for an online store in India?
Payment gateways commonly ask for one. For example, Razorpay's documentation lists a Cancellation and Refunds policy among the pages your website needs. Consumer protection rules also apply to online sellers, so ask a CA or lawyer what applies to your business.
Can I write 'no returns' on my store?
You can limit returns for certain items, such as innerwear or custom products, if you state it clearly before purchase. But you cannot refuse refunds that the law requires, for example for defective or wrong items. Get professional advice before using a strict no-returns rule.
How do I refund a cash on delivery order?
Since there is no card or UPI payment to reverse, sellers usually refund COD orders by bank transfer or UPI after collecting the customer's details. Say this clearly in your policy and tell customers which details you need.
Can I copy another store's refund policy?
Do not copy it word for word. Another store's rules may not match your products, courier or payment setup, and copied text can promise things you cannot deliver. Use it only as a reference and write your own.