Direct answer: A US refund policy should state the return window, condition requirements, restocking fees, who pays return shipping, exchange options, final-sale categories, and how refunds are issued. Add a clear disclaimer that the policy is not legal advice.
This guide gives a plain-English template you can adapt for Shopify, Etsy, and DTC stores, and links to a free generator that produces a starter draft.
Who this is for
US-based Shopify, Etsy, and DTC store owners drafting or refreshing a refund policy before publishing.
Structure of a good refund policy
- Return window (e.g. 30 days from delivery).
- Condition requirements (unused, original packaging, proof of purchase).
- Who pays return shipping.
- Restocking fee (if any) and when it applies.
- Exchange rules.
- Final-sale categories.
- Damaged / defective handling.
- How refunds are issued and expected timing.
- Contact details.
- Legal disclaimer (state laws may add requirements).
State laws to be aware of
Some US states (California, Massachusetts, New York, Virginia) require specific disclosures for return policies displayed at checkout or at point of sale. Always have an attorney review before publishing.
Common US refund policy defaults (illustrative only)
| Store type | Window | Restocking fee | Return ship |
|---|---|---|---|
| Apparel | 30 days | 0% | Customer |
| Electronics | 14 days | 10–15% | Customer |
| Beauty (unopened) | 30 days | 0% | Customer |
| Furniture / oversize | 14 days | 10–20% | Customer |
Example calculation (USD)
A Shopify apparel store might set: 30-day window, no restocking fee, customer pays return shipping unless the item arrived damaged, exchanges offered for size/color, clearance items are final sale, refunds within 5–10 business days after inspection. Add contact email and legal disclaimer.
Common mistakes to avoid
- Copying a policy from a competitor without checking your carriers, restocking cost, or state law requirements.
- Making refund windows longer than your return-handling capacity.
- Hiding the policy behind a checkbox instead of in the footer and cart.
- Not translating the policy into the customer's language for international sales.
Best practices
- Link the refund policy from every product page and checkout.
- Match the policy to what your CX team actually enforces.
- Revisit annually and after every carrier price change.
Frequently asked questions
Is a refund policy legally required in the US?
It varies by state. Regardless, publishing a clear policy reduces disputes and chargebacks.
Can I charge a restocking fee?
Generally yes if disclosed clearly. Check state law and payment-processor rules.
Does this template replace an attorney?
No. Have a licensed attorney review before publishing.