What Should Your Purchase Conditions Include? A Legal Checklist for eCommerce Stores

Having clear Purchase Conditions is an essential part of running any successful eCommerce store. This is the case whether you're selling physical products, digital downloads, services, or a combination of things.

Purchase Conditions serve as the foundation for the relationship between you and your paying customers. Having well-drafted Purchase Conditions will help set and manage shopper expectations, reduce disputes, and help you comply with applicable consumer protection laws.

In this article, we'll walk through the key information every eCommerce store should consider including in its Purchase Conditions, including pricing errors, discounts, delivery terms, returns, refunds, product availability, digital goods, and governing law.

We'll help you understand the practical purpose behind each clause so you can draft them in a way that is both enforceable and customer-friendly, and show real-world examples of each.

Why Is It Important to Have Clear and Thorough Purchase Conditions?

Clear, well-structured Purchase Conditions put you and your customers on the same page from the start. Without clear Purchase Conditions, your customers will be left having questions about things like when to expect delivery, and what they can do if they're unsatisfied with their purchases once they receive them.

Not having clear Purchase Conditions also leaves room for interpretation, and when there's room for interpretation, disputes tend to follow. A customer might believe they're entitled to a refund when your policy is to not allow refunds. They may expect same-day shipping when your actual timeline is several days.

Where Do You Display Your Purchase Conditions?

While your Purchase Conditions can be written as a standalone policy, they're most often integrated into a Terms and Conditions agreement. Even if you do have a standalone Purchase Conditions Policy, you should still reference and link to it within your general Terms and Conditions to help ensure people notice it and know it exists.

The same goes for policies that may cover some of the same content as your Purchase Conditions, such as a Return and Refund Policy. Even if you have this as a separate policy, it's a smart best practice to still include a short clause within your Terms agreement that summarizes your return policy requirements and links to the full policy.

This cross-linking helps make sure that people aren't likely to claim they had no idea about your policies or were misled.

What Information Should Be Included in Purchase Conditions?

The main information that should be included in your Purchase Conditions includes the following:

• Pricing errors
• Discounts and promotions
• Delivery terms
• Returns
• Refunds
• Product availability
• Digital goods
• Governing law for disputes

Let's look at some real-world examples of each of these and dive deeper into what specific information should be included.

Pricing Errors

Pricing errors happen, even to the most meticulously careful online retailers. A misplaced decimal point, outdated sale tag, or glitch in the checkout process can display an incorrect price. This simple type of error can turn into a big and expensive problem if customers expect you to honor that price, even if it's clearly wrong and irrationally low.

When addressing pricing errors in your Purchase Conditions agreement, state that while you strive for accuracy, prices may at times be incorrectly listed due to human or technical error, and that you reserve the right to refuse or cancel any order placed at an incorrect price. Some ecommerce stores go even further, specifying that if the actual price is higher, they will contact the customer before processing payment or shipping.

The tone of this matters a lot. Make sure you avoid sounding accusatory or harsh, and instead just calmly explain that errors are rare but possible. This helps preserve goodwill while protecting you from being locked into a loss-making sale.

Here's how Middletown Nissan presents this information, starting the section by noting that it tries to make sure all prices are accurate at all times, but that sometimes errors may appear. It states that the "dealer is only responsible for the correct price" which helps make it clear that the incorrect prices will not be honored:

Here's how lululemon presents this information in a legally-sound but less tactful way, using all caps and stating it "reserves the right to cancel or refuse to accept any order placed based on incorrect pricing":

Discounts and Promotions

If you run promotional events, offer discounts, have a rewards program, or all coupon codes, you should address all of this in your Purchase Conditions agreement. People may be unclear about whether or not they can stack discounts, or might think a certain promotional event runs for a longer time than it actually does. Something as simple as noting that coupon codes can only be used once can go a long way in keeping your customers' expectations in check so they don't expect ongoing and excessive discounts.

Here's how Molly's Suds addresses discount codes very thoroughly, letting shoppers know that third party discount codes are not valid, that valid codes are subject to exclusions or restrictions. Each code can only be used once, cannot be redeemed for cash, and may expire:

Delivery Terms

Many people are now used to almost instant delivery, with same-day and within-a-few-hours delivery options so widely available in some regions. Because of this, the delivery process can be one of the most common sources of customer frustration when they aren't sure when to expect an item and may end up having to wait many days or weeks. To avoid this frustration, make this information a priority in your Purchase Conditions document.

Set clear expectations about your shipping methods, delivery timelines, and geographic limitations. If you only ship within certain regions, state that upfront. If delivery estimates are not guaranteed, say this clearly in your Purchase Conditions agreement

You can also explain who bears the risk once a product is shipped. Does liability transfer to the customer upon dispatch, or only upon receipt? For high-value items, you might specify signature requirements or recommend purchasing insurance.

If you offer multiple shipping speeds, include the conditions for each. For example, expedited delivery might exclude weekends and public holidays. Overnight delivery might not be an option for orders placed after a certain point in the day. If delivery delays occur due to events outside your control, like strikes, weather disruptions, or customs holds, make sure your clause states that you're not liable for these situations, while still committing to making reasonable efforts to fulfill orders promptly.

Here's how Michael's notes that order processing can take from 1 to 3 business days and shows that this doesn't include weekends. It also lists all of the shipping methods available:

It includes a chart with multiple shipping rates outlined depending on what the total purchase amount is, and what the shipping method selected is, which is incredibly helpful to shoppers:

Returns

Your policy around returns is going to be a major trust signal for customers, but it's also an area where clarity protects your business. This section should specify things like:

• Whether returns are accepted at all.
• If there are any exceptions. If certain products are non-returnable, such as perishables, custom-made goods, or items marked as final sale, this needs to be clearly stated.
• The time frame in which returns must be made, like a 30 day window from the delivery date.
• What the process is for initiating a return, like needing to contact the company for a return authorization number.
• The condition in which items should be returned, for example, needing to be unused and with the original packaging.
• Who's responsible for the costs of return shipping.

In some jurisdictions, such as the EU, you are required to accept returns for online purchases within a certain cooling-off period. Even if not legally mandated, offering a fair and transparent returns process can enhance customer loyalty and reduce disputes, so long as the terms are unambiguous.

Remember: even if you have a full and separate Return and Refund Policy, you should still make brief mention of your return policy and link to the full document.

Here's how Beekeeper's Naturals lets shoppers know that they have to send in an email to start a return request, and that returns are not accepted without prior approval:

The eligibility of returns is explained, including information for opened items, unopened items, and limitations on excessive returns:

Here's how Michael's includes an exceptions section that lists out exceptions to its standard return policy, including custom orders, clearance items, and certain brand name items. Michael's also reserves the right to limit returns or exchanges, which can be a great way to safeguard yourself against excessive, potentially fraudulent returns:

Refunds

The refund section of your Purchase Conditions is very closely related to the returns section. The refunds section should explain how and when customers will receive their money back, and in what form, if different from the original payment method used. Specify whether refunds will be issued to the original payment method, in-store credit, or another form, and how long processing will take after receiving a returned item.

If you offer partial refunds for items that are returned in less-than-perfect condition, or restocking fees for certain categories, outline those details here. This is also the place to address refunds for defective products versus refunds due to a change of mind, as the requirements may differ.

Transparency in refund conditions not only helps you meet legal requirements, but it can also prevent "chargeback" disputes with credit card issuers, which often side with the customer if your policy is unclear or poorly communicated.

Michael's has a very short but concise refund section that notes how refunds will be issued in the same format as the original payment except for exceptions outlined, and that shipping and handling costs of the original purchase may be deducted:

Best Buy explains its refund timeline, including processing time that will occur after a returned item is received back. It even notes the time needed for a bank to process the refund. It also outlines how different methods of payment affect the refund, noting how gift card refunds will be issued back to a gift card:

Product Availability

Inventory issues are inevitable in eCommerce, especially when demand outpaces your supply like during certain times of the year or a big sale event, or if a technical or manmade error occurs in tracking your stock.

Your Purchase Conditions are where you should make it clear that product availability is not always guaranteed until an order is confirmed. This protects you when circumstances beyond your control (or sometimes an error in your control) make fulfillment of an order impossible.

If you use a "backorder" system, explain how it works, whether customers will be charged immediately or only when the item ships, and what happens if the delay becomes prolonged. If a product is discontinued after an order is placed, state your process for offering substitutions, store credit, or refunds.

Here's how lululemon addresses product availability in a very short and to-the-point clause:

Digital Goods

Selling digital products like software, eBooks, or online courses, comes with unique considerations. Your Purchase Conditions should clarify that once a digital item is delivered (for example, via download or email link), the sale is typically final. This helps prevent abuse of refund policies, as digital goods can't be "returned" in the traditional sense.

If you do allow refunds for digital items in certain cases, such as corrupted files or undeliverable downloads, spell out the specific criteria required for this, and what a customer should do.

Here's how CreativeProcess notes that it can't offer a refund for change of mind on digital products, but that in some limited cases a refund is available, including technical issues and if the product was misrepresented in the description:

Governing Law

No matter where your eCommerce business is based, your Purchase Conditions should state which jurisdiction's laws will govern the agreement and where disputes will be resolved. This is especially important if you sell internationally, as it helps avoid being pulled into legal proceedings in multiple countries. Pairing this with a dispute resolution process, such as requiring mediation before litigation, can also help avoid drawn-out and expensive legal conflicts with customers.

When choosing the governing law, make sure you choose one that you're familiar with and able to comply with fully, including any consumer protection rules that apply to online transactions.

Here's how Molly's Suds combines governing law and arbitration information together in an effective way:

How Do You Make Your Purchase Conditions Easy to Find and Access?

The best way to make your Purchase Conditions easy to find and access is to:

• Include each component of your Purchase Conditions within your Terms and Conditions agreement. People know to look at a Terms and Conditions agreement for important information, so including your Purchase Conditions here makes sense.
• Present your T&C to customers and have them agree to it before they complete a purchase. This can be done as part of the checkout process.

The best practice here is to present the Purchase Conditions as part of a Terms and Conditions agreement during checkout with a click-to-accept checkbox. This clickwrap method provides legal evidence that the customer actively agreed to the terms, making them easier to enforce in the event of a dispute.

Here's an example of an easy, common, and highly effective way to make sure your Purchase Conditions, included within a Terms and Conditions agreement, are easily accessible to a user, and that you get their agreement to everything within them:

While you can and should also include a link to your Terms and Conditions with your Purchase Conditions to your website footer, this alone won't be enough to be effective for your eCommerce store. Make sure you use some sort of an "I Agree" checkbox at checkout and link to your Terms agreement to be legally protected.

Summary

Your Purchase Conditions are a critical tool for helping shape relationships with your customers, keeping them informed, while also managing your risks. By covering key areas like pricing errors, delivery terms, returns, refunds, product availability, digital goods, and governing law, you create a framework that protects both you and your customers from a variety of potential things that could negatively affect one or both of you.

Good Purchase Conditions are transparent, specific, and accessible. They anticipate common issues and explain how they will be handled, leaving little room for unpleasant surprises. When drafted carefully and presented clearly, they not only reduce disputes but also build trust. It's very common to include these conditions as part of larger agreements, such as a Terms and Conditions agreement, Return and Refund Policy, or Shipping Policy. As long as all of the information is addressed thoroughly, and your customers can easily find the information at any time, how you present your Purchase Conditions is somewhat flexible.

Just remember to always present them to shoppers at checkout and have them click a box or button to show they agree to the conditions.

Whether you operate a niche online store or a large-scale marketplace, investing the time to craft clear, legally sound Purchase Conditions will pay off as you end up with smoother operations, fewer conflicts with customers, less time spent answering questions about things like your shipping and refund policies, and a stronger reputation in the marketplace.