The right to cancel online orders in the UK: what eBay business sellers must offer

What is the right to cancel online orders in the UK?

The right to cancel online orders in the UK lets a consumer who buys goods from a business at a distance change their mind. According to gov.uk's guide to online and distance selling for businesses, a buyer of goods from a business online can cancel up to 14 days after the order is delivered, without giving a reason. If the business does not tell them about this right, they can cancel at any time in the next 12 months.

The rules come from the Consumer Contracts Regulations, and they apply to eBay business sellers just as they apply to any online shop. They are one reason eBay requires business sellers to have a returns policy.

This guide explains the general rules in plain words. It is not legal advice, so check gov.uk for the detail and take advice if your situation is unusual.

Who does the right to cancel apply to on eBay?

The right applies when a consumer buys from a business. On eBay UK, that means it applies to sales by business sellers. eBay's business seller policy says you must register as a business if, for example, you sell items you bought to resell, make items to sell or buy items for your business. Business sellers must show full business contact details and create a returns policy stating how long buyers have to return items for a full refund.

A genuine private seller clearing out personal belongings is not trading, so these rules do not apply in the same way. Using a private account while trading does not remove your buyers' rights; it just means you are on the wrong account. Our guide to eBay private seller vs business seller explains the difference.

What must you tell buyers before they order?

Businesses selling at a distance must give buyers certain information before the contract is made, including who you are, how to contact you, the total price with delivery, and the right to cancel with how to use it. On eBay, much of this comes from your business details and your returns policy.

• Your identity and contact details. eBay shows the business contact details you provide.
• The total price. The item price and postage, so the buyer knows what they will pay.
• The right to cancel. That the buyer can cancel within 14 days of delivery, and how to do it.
• Who pays return postage. If you want buyers to pay the cost of sending goods back after a change of mind, tell them before they order.

Put the key points in your eBay returns policy and keep the wording consistent with any notes in your listings. Conflicting statements, such as a listing that says "no returns" next to a policy that allows them, confuse buyers and do not remove their legal rights.

Getting this right matters for your risk. If you do not tell buyers about the right to cancel, the 14-day period extends, and they can cancel at any time in the next 12 months.

How do refunds work when a buyer cancels?

When a buyer cancels within the period, you refund them. gov.uk's guide to accepting returns and giving refunds covers the detail, including the time limits for refunds.

How a buyer cancels

A buyer can cancel by telling you clearly that they want to, for example through eBay's returns process or a message. They do not have to use particular words or give a reason. On eBay, most buyers start a return request, which keeps the record in one place. Treat a clear message as a cancellation too, and reply promptly with how to send the item back.

Cancelling before dispatch

The cancellation period runs from when the order is placed until 14 days after delivery, so a buyer can also cancel before you have posted the item. If you have not dispatched it yet, cancel the order on eBay and refund in full. That is quicker and cheaper for everyone than posting the item and waiting for it to come back.

What the refund includes

• The price of the item.
• The standard delivery charge the buyer paid to receive it. If they chose a more expensive delivery option, you only have to refund the cost of the standard option.

Return postage

If you told the buyer before they ordered that they pay return costs for a change of mind, they pay to send it back. If you did not, the cost falls on you.

Reducing a refund

You may be able to reduce the refund if the value of the item has gone down because the buyer handled it more than was needed to see what it is and how it works, much as they could in a shop. Trying on a jumper is fine; wearing it out is not. Keep photos of returned items as evidence.

A worked example: a cancelled eBay order

Example: suppose a hypothetical business seller sells a lamp for £40.00 with £3.50 standard postage. The buyer changes their mind 6 days after delivery. The figures are invented to show how the rule applies.

In this example the seller who stated that buyers pay return postage saves the return label cost on every change-of-mind return. Over a year of returns, that line in the policy is worth having, as long as it is clear before the buyer orders.

Which goods are exceptions to the right to cancel?

The law has exceptions, but they are narrow. gov.uk lists them, and they include, for example:

• goods made to the buyer's specification or clearly personalised;
• goods that deteriorate quickly;
• sealed goods unsuitable for return for health or hygiene reasons once unsealed;
• sealed audio, video or computer software once unsealed.

Do not stretch these. A standard product is not "personalised" because the buyer chose a colour from your options. A bundle you put together from stock items is not made to the buyer's specification either, and an item in ordinary retail packaging is not a sealed hygiene product just because it comes in a box. If you rely on an exception, say so clearly in the listing and check the exact wording on gov.uk.

Faulty goods are different

The right to cancel is about change of mind. If an item is faulty or does not match your description, other consumer rights apply, and eBay's Money Back Guarantee also covers items that do not match the listing. Under the eBay Money Back Guarantee, buyers can request a return for an item not as described within 30 calendar days of delivery, or within your longer return window, and you must respond within 3 business days. In those cases the seller normally bears the cost.

How should you set up your eBay returns policy?

Your eBay returns policy is where your legal duties and your buyers' expectations meet.

1. Cover at least the legal minimum. Make sure your policy allows returns for change of mind within at least 14 days of delivery.
2. Decide who pays return postage. State it clearly in the policy.
3. Consider a longer window. Some sellers offer longer returns to attract buyers. Under the Money Back Guarantee, your longer window also applies to items not as described.
4. Keep your contact details current. Buyers must be able to reach you to cancel.
5. Write down your process. How you check returned items, when you refund and how you record it.

Deliver on time as well. gov.uk says goods must be delivered within 30 days unless you agree otherwise with the customer, and eBay measures late deliveries against your estimated delivery dates.

A quick checklist

• Confirm you are on a business account if you trade on eBay.
• Check your returns policy allows change-of-mind returns for at least 14 days after delivery.
• State clearly who pays return postage.
• Refund the item and standard outbound postage when a buyer cancels in time.
• Photograph returned items and record each refund. Our guide to record keeping for eBay sellers shows how.
• Read gov.uk's list of exceptions before relying on one.