E-commerce Returns & Refunds Policy (Philippines, 2026)

A bad returns policy costs you orders. A too-generous policy costs you margin. The right policy builds trust and protects you.

Here's a framework that works for PH ecom in 2026.

TL;DR

7-day return window for most categories.

Customer pays return shipping (unless defective).

Refund within 7 business days.

Methods: GCash, original payment method, store credit.

Clear policy page on your site.

Document the policy at checkout.

Legal basics

PH Consumer Act (RA 7394):

Defective products: customer entitled to refund or replacement.

Mislabeled / misrepresented products: same.

Change of mind: NOT legally required to refund (but most businesses do for goodwill).

DTI may step in if:

You misrepresent products.

Defective items aren't replaced/refunded.

Hidden fees or pricing.

Consult a lawyer for your specific case. The framework below is a starting point.

Policy components

1. Return window

7 days from delivery for most categories. 14 days for higher-AOV (apparel, electronics).

Don't go below 7. Builds distrust.

Don't go above 30 (without strong reason). Increases return rate disproportionately.

2. Conditions

Original packaging.

Unworn / unused.

Tags attached (apparel).

Original receipt or order number.

For consumables (food, supplements, beauty): typically no returns once opened (only sealed/unopened).

3. Who pays return shipping?

Two approaches:

Customer pays (recommended): clear, sustainable margin protection. Free returns: builds trust but adds 5–8% to operational cost.

Hybrid: customer pays unless defective. Most PH stores use this.

4. Refund methods

Original payment method (preferred for cards/Shop Pay).

GCash transfer (fast for PH customers).

Store credit (sometimes preferred for repeat shoppers).

Process within 7 business days of receiving returned item.

5. Restocking fees

Optional. 10–15% restocking fee for non-defective returns.

Use sparingly. Customers see them as punitive.

6. Exclusions

Common categories with no returns:

Sale items (final sale clearly marked).

Hygienic products (intimate apparel, opened beauty).

Custom or personalized orders.

Gift cards.

Make exclusions clear at the time of purchase, not buried in policy.

Sample policy text

```

Returns & Refunds

We want you to love your purchase. If you don't, here's how returns work:

ELIGIBILITY

Return any unworn, unused item within 7 days of delivery for a refund or exchange. Items must be in original packaging with tags.

EXCEPTIONS

Sale items, hygienic products (opened beauty, intimate apparel), and custom orders are final sale.

HOW TO RETURN

1. Email returns@yourbrand.com with your order number and reason.

2. We'll send return shipping instructions.

3. Customer pays return shipping (unless item is defective or wrong).

4. Once received, refund processes within 7 business days.

REFUND METHODS

Refunds go to the original payment method. GCash and Maya users receive refunds via GCash. Card payments are reversed. Refunds typically reflect within 5 business days.

DEFECTIVE OR WRONG ITEM

If the item arrived damaged or wrong, we cover return shipping AND replace or refund — your choice. Email us with photos within 48 hours of delivery.

QUESTIONS

hello@yourbrand.com or Messenger.

```

Adjust to your specific business.

Where to publish

Dedicated /policies page (or /returns).

Linked in footer (visible from every page).

Linked at checkout.

Mentioned in post-purchase email.

Hidden policies = customer distrust.

Cost of returns

Track:

Return rate (% of orders returned).

Reason for return (sizing, defect, change of mind).

Refund amount vs net order value.

Healthy PH ecom return rates by category:

Beauty: 2–5%.

Apparel: 8–15%.

Home: 3–7%.

Electronics: 5–12%.

If your rate is significantly higher: investigate root cause (sizing, quality, descriptions).

Reducing returns

Better product descriptions

If returns are sizing-related: add clearer sizing guides.

Better photography

If returns are "looks different in photos": improve photography (lifestyle, multiple angles, video).

Better customer service

If returns are "didn't know X": add FAQ on PDP.

Quality control

If returns are defects: tighten supplier QC, change suppliers if needed.

Goodwill returns

Sometimes the policy says "no" but goodwill says "yes":

Long-time loyal customer.

Major holiday gift mistake.

Genuine misunderstanding.

Make exceptions occasionally. Customer for life > one refund saved.

Returns and ad attribution

Most platforms (Meta, Google) report revenue without subtracting returns. So your reported ROAS is gross, not net.

Adjust for this:

Calculate your true return rate.

Net ROAS = Gross ROAS × (1 - return rate).

Use net ROAS for true business decisions.

Common mistakes

1. No policy = customers won't buy.

2. Vague policy ("contact us") = mistrust.

3. Too restrictive (3 days, customer pays everything) = lost sales.

4. Too generous (90 days, free returns always) = abused.

5. Not honoring policy = bad reviews + DTI complaints.

Want a policy template?

A clear policy is foundational. My Shopify Expert service includes policy review. Or learn the system in the Shopify Course Philippines.