Terms of Business Template for E-commerce Businesses (UK 2025)
Last updated: February 2025
Why E-commerce Businesses Need a Terms of Business
E-commerce terms of business govern the sale of goods and services online, covering ordering processes, delivery terms, returns and refunds, and consumer protection compliance. These terms must comply with the Consumer Contracts Regulations 2013 for distance selling, the Consumer Rights Act 2015, and electronic commerce regulations. The terms serve as the legal foundation for potentially thousands of daily transactions and must be clearly presented during the checkout process to be enforceable.
Key Clauses for E-commerce
- Ordering, payment, and contract formation process
- Delivery terms, timeframes, and risk of loss provisions
- Returns, refunds, and the 14-day cancellation right
- Product descriptions, pricing accuracy, and error correction
Common Mistakes
- Not complying with the 14-day cooling-off period for distance selling under the Consumer Contracts Regulations 2013
- Failing to clearly explain when the contract is formed, which is usually upon dispatch rather than upon order placement
Template Sections
- Ordering process and contract formation
- Delivery, returns, and refund policy
- Consumer rights and cancellation provisions
FAQ
What consumer rights must e-commerce terms of business include?
Under the Consumer Contracts Regulations 2013, online buyers have a 14-day right to cancel from the date of delivery, receive a full refund within 14 days of return, and be provided with clear pre-contractual information including the seller's identity, full price, delivery costs, and cancellation rights. Your terms must not attempt to restrict these statutory rights.
When is the contract actually formed in an e-commerce transaction?
Your terms should clearly state when the contract is formed. Best practice for e-commerce is that the order is an offer from the customer, and the contract is formed when you dispatch the goods and send a dispatch confirmation. This allows you to reject orders for out-of-stock items or pricing errors without breaching a contract.
Generate this contract in 60 seconds
AccountsOS generates customised, UK-compliant terms of businesss. From £10/month.
Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
View all templates