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    How to write a return and refund policy for your Indian online store

    What the E-Commerce Rules expect from your return and refund policy, how to handle COD refunds, and a clause-by-clause template you can adapt for your store.

    Illustration: writing a return and refund policy for an online store
    Yashh Mittal
    Yashh Mittal
    Founder
    6 Aug 2026 · 4 min read
    Topic: Business setup & legal
    In short

    A return and refund policy for an online store in India must state accurate return, refund, exchange and return shipping terms. You can limit change-of-mind returns, but you cannot refuse defective, misdescribed or late goods. Spell out COD refunds and show the policy before checkout.

    What the e-commerce rules require

    The Consumer Protection (E-Commerce) Rules, 2020 do not set one return window for every store. They ask for honesty and clarity instead. If you own your stock and sell it on your own site, rule 7 asks you to show accurate information on returns, refunds, exchanges, warranty and delivery. That includes the cost of return shipping. You cannot refuse to take back goods that are defective, spurious, not as advertised, or delivered late. Late delivery is excused only for force majeure. Refunds you accept must be paid in a reasonable time, following RBI rules.

    Returns vs exchanges vs refunds

    These three words mean different things, so define each one. A return is the product coming back to you. An exchange swaps it for another size or colour. A refund sends money back to the buyer. Many small stores offer exchanges freely but refunds only for damaged or wrong items. You can do that, as long as the policy says so plainly. You must still take back and refund faulty or misdescribed goods.

    Timelines to state

    Buyers want dates, not vague promises. State three numbers. How many days after delivery they can ask for a return. How long pickup or self-shipping takes. And how many days after you receive the item the refund will land. Pick a return window your courier and cash flow can support, then stick to it. A short window you honour builds more trust than a long one you dodge.

    COD refunds

    Cash on delivery makes refunds harder, because there is no card or UPI payment to reverse. Say exactly how COD buyers get their money back. The usual route is to collect a UPI ID or bank details, then pay by UPI or bank transfer once the return passes a quality check. Never ask for a card PIN or an OTP. Store credit is fine as an option. For faulty goods, though, store credit alone is not enough, because the rules say you cannot refuse a refund.

    A template you can adapt

    ClauseWhat to write
    Return windowThe number of days after delivery a buyer can ask for a return
    Items you excludeAnything you do not take back, such as innerwear or custom orders
    Damaged, wrong or late ordersThat you always take these back and refund them
    ExchangesWhether you swap size or colour, and who pays the shipping
    Return shipping costWho pays it, and how much if the buyer does
    Refund method and timingHow money goes back for prepaid and COD orders, and in how many days
    CancellationsUntil when a buyer can cancel, and any charges
    ContactHow to start a return, and your grievance officer's details

    Show it before checkout

    A policy buried in the footer does little. The rules ask for this information to be clear and easy to see, and buyers decide faster when they can find it. Link the policy on every product page and in the cart. Add one line near the Pay button, such as 7-day easy returns. Repeat the key terms in the order confirmation email. On cancellations, remember that the rules bar charges unless you bear similar charges when you cancel. The Storemate starts each store with a draft Return and Refund Policy page to edit before you publish. For unusual categories, check the wording with a lawyer.

    Frequently asked questions

    Is a return policy mandatory for an online store in India?

    In practice, yes. The E-Commerce Rules ask sellers to show accurate return, refund, exchange and return shipping information, and payment gateways check for a refunds policy.

    Can I have a no-returns policy?

    Only for change-of-mind returns. You still cannot refuse to take back goods that are defective, spurious, not as advertised, or delivered late.

    How do I refund a COD order?

    Collect the buyer's UPI ID or bank details and pay by UPI or bank transfer once the return is checked. State in your policy how many days it takes.

    Sources

    • Department of Consumer Affairs - Consumer Protection (E-Commerce) Rules, 2020
    • Razorpay Docs - business website details

    Keep reading

    • ComplianceThe legal pages your Indian online store needs, and what each must say
    • PlaybooksSize guides and content that reduce returns
    • PlaybooksCOD is quietly killing your margins: how to cut RTO in 2026
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