Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
- What Are Ecommerce Terms And Conditions (And Why Do They Matter)?
What Should An Ecommerce Terms And Conditions Template Include?
- Business Details And Contact Information
- Ordering Process And Contract Formation
- Pricing, GST And Payment
- Shipping, Delivery And Risk
- Returns, Refunds And Exchanges (ACL-Compliant)
- Product Descriptions And Availability
- Promotions, Discount Codes And Gift Cards
- Intellectual Property (Your Content And Brand)
- Prohibited Conduct And Website Use Rules
- Limitation Of Liability (Done Carefully)
- Governing Law And Jurisdiction (Australia)
- Do You Need A Shopify Terms And Conditions Template If You Sell Online?
- What Other Legal Documents Should Your Online Store Have?
- Key Takeaways
If you run an online store, you’re probably juggling product pages, fulfilment, marketing, customer messages and returns - all while trying to grow. It’s easy to treat your store terms as a “later” job.
But your terms and conditions are one of the most practical tools you have to protect your revenue, reduce disputes and set expectations with customers before anything goes wrong.
This guide walks you through what to include in an ecommerce terms and conditions template for an Australian online store, how to tailor it to your business, and the key compliance risks to watch out for. We’ll also cover why many store owners start with a Shopify terms and conditions template - and why your final terms should still be specific to your products, delivery model, and customer journey.
What Are Ecommerce Terms And Conditions (And Why Do They Matter)?
Ecommerce terms and conditions (sometimes called “store terms”, “website terms”, or “online shop terms”) are the legal rules that apply when customers browse your site and buy from you.
In plain English, your terms help you:
- Set clear expectations about delivery timeframes, returns, refunds and warranties
- Reduce customer disputes by having a consistent process you can point to
- Protect your brand and content (like product photos, copy and logos)
- Manage risk around chargebacks, fraud, abusive behaviour, and misuse of your website
- Comply with Australian Consumer Law (ACL) by avoiding misleading promises and unfair contract terms
They’re also a key part of building trust. Customers want to know what happens if an item arrives damaged, what your turnaround time is, and how you’ll handle returns.
Even if you’re using a Shopify terms and conditions template (or another ecommerce template), it’s important to treat it as a framework - not a set-and-forget document. Your terms should match how your business actually operates.
What Should An Ecommerce Terms And Conditions Template Include?
A strong ecommerce terms and conditions template usually covers two things:
- Website use rules (what customers can and can’t do on your site)
- Sales terms (what happens when a customer places an order)
Below are the most common clauses we recommend online stores think about.
Business Details And Contact Information
Start with the basics: who is selling the products, where you’re located, and how customers can contact you.
This is especially important if you operate under a business name that’s different from your legal entity name.
Ordering Process And Contract Formation
You’ll usually want your terms to explain when an order becomes binding. For example:
- When a customer clicks “Place Order”, are they making an offer?
- Do you accept the order only once you email confirmation?
- What happens if there’s an obvious pricing error?
This section can be critical for avoiding messy disputes when stock runs out, a discount code misapplies, or there’s a website glitch.
Pricing, GST And Payment
Your terms should clearly deal with:
- Whether prices are in AUD
- Whether prices include GST (if applicable)
- Accepted payment methods
- What happens if payment fails or is reversed
- Fraud checks or order verification steps (if you use them)
This is also where you can address chargebacks and your process for handling suspected fraudulent orders.
Note: GST and pricing can be tax-sensitive, so if you’re unsure how to present pricing or GST on your store, it’s worth confirming the right approach with your accountant or tax adviser.
Shipping, Delivery And Risk
Delivery is one of the most common sources of customer frustration, so your terms should be very clear on:
- Shipping timeframes (and that they are estimates, not guarantees, if that’s true)
- Dispatch times versus delivery times
- International shipping limitations (if relevant)
- Address accuracy (and what happens if the customer enters the wrong address)
- When risk passes (for example, on delivery versus on dispatch)
If you use third-party couriers, it’s still your customer relationship - so your terms should set expectations without trying to “contract out” of obligations you can’t avoid under the ACL.
Returns, Refunds And Exchanges (ACL-Compliant)
In Australia, your returns and refunds position must comply with the Australian Consumer Law. This is where many “template” store terms can get businesses into trouble, because the wording is often too broad or too absolute.
Your terms should explain:
- Your process for change-of-mind returns (if you offer them)
- Timeframes for returns (where permitted)
- Condition requirements (e.g. unused, original packaging), again where permitted
- How you handle faulty products and what the customer is entitled to under the ACL
A common mistake is using language like “no refunds under any circumstances.” That is likely to be misleading and non-compliant for consumers when a product has a major failure.
If your store sells goods and you mention warranties, you also need to be careful about how you describe them. The ACL provides automatic consumer guarantees, and your terms shouldn’t suggest customers have fewer rights than they actually do. This comes up a lot when businesses talk about “2-year warranties” - if you reference time-based warranty statements, make sure they’re accurate and not misleading. (This is often where a short legal review is worth it.)
Product Descriptions And Availability
Your terms can help manage expectations about:
- Colours and images (e.g. variations due to screens)
- Measurements and sizing (especially for apparel, furniture and custom products)
- Stock availability and backorders
- Product changes (e.g. updates to ingredients, packaging, or design)
This section is also connected to misleading or deceptive conduct risk - if you describe products in a way that over-promises, it can create compliance and dispute issues later.
Promotions, Discount Codes And Gift Cards
If you run sales, discount codes, referral promotions, giveaways or gift cards, your terms should explain:
- Expiry dates and restrictions
- Whether codes can be combined
- Minimum spend requirements
- What happens if a return occurs after a code was used
If you run competitions or promotional giveaways, it’s also worth checking whether your campaign triggers any additional regulatory requirements depending on how it’s structured.
Intellectual Property (Your Content And Brand)
Your store likely contains valuable content: product photos, branding, descriptions, videos, packaging designs and more.
Terms and conditions commonly include an IP clause that says customers can’t copy, reproduce or exploit your content without permission.
This clause won’t replace registering your brand assets (like trade marks), but it’s still a helpful layer of protection for day-to-day misuse.
Prohibited Conduct And Website Use Rules
Your website terms can address things like:
- Misuse of the website (hacking, scraping, reverse engineering)
- Abusive behaviour towards staff
- Fake reviews or misleading claims
- Interference with checkout or payments
This can be especially useful if you have community features, reviews, or user-generated content.
Limitation Of Liability (Done Carefully)
Many store owners want a clause that limits liability - for example, excluding indirect losses, or capping liability to the purchase price.
Liability clauses can be useful, but they need to be drafted carefully, because:
- You generally can’t exclude non-excludable consumer guarantees under the ACL
- If you use overly one-sided terms, you can increase the risk of the clause being considered an unfair contract term
A better approach is usually to tailor your liability wording to your product type, your customer base (consumer versus business customers), and how you actually fulfil orders.
Governing Law And Jurisdiction (Australia)
Most Australian online stores will specify that the terms are governed by Australian law (often the law of a particular State or Territory).
This doesn’t “avoid” consumer law, but it helps clarify what legal framework applies if a dispute escalates.
Do You Need A Shopify Terms And Conditions Template If You Sell Online?
Many store owners search for a Shopify terms and conditions template because they want something fast, familiar, and easy to implement.
Templates can be a helpful starting point, especially when you’re launching and trying to get the basics in place. But it’s important to understand the trade-off:
- Templates are general - your store is specific.
- Templates can be incomplete - particularly for high-risk categories like subscriptions, digital products, pre-orders, custom goods, food, or health-related products.
- Templates can include risky wording - especially if they attempt to exclude refunds too broadly or use blanket disclaimers.
If you’re using any kind of online terms generator, it’s worth double-checking whether the output is tailored to Australia and aligned with the ACL. Many store owners only realise there’s a problem when a customer complaint escalates or a payment provider asks for proof of policies.
As a practical rule: if your store has anything “non-standard” (subscriptions, pre-orders, customisation, digital downloads, age-restricted goods, international shipping, or marketplace selling), you’re usually better off tailoring your terms properly from day one.
How To Tailor Your Ecommerce Store Terms To Your Business (Without Guessing)
A good ecommerce terms and conditions template is not just a legal document - it should reflect your real processes. If your terms say one thing but your fulfilment workflow does another, you’ll end up with unhappy customers and inconsistent decisions internally.
Here’s a practical way to tailor your store terms.
1. Map Your Customer Journey
Write down the steps from “customer lands on website” through to “order delivered and any return handled”.
This helps you identify what your terms actually need to cover, such as:
- When payment is processed
- When you confirm orders
- What happens if stock is unavailable
- What “dispatch” means in your business
- How returns are initiated
2. Identify Your Product Risk Points
Different products create different disputes. For example:
- Apparel: sizing, fit, hygiene returns, change-of-mind expectations
- Food/cosmetics: expiry dates, allergens, storage conditions, “results may vary” claims
- Digital products: instant access, refunds after download, licensing
- Custom products: production lead times, approval steps, cancellations
Your terms should address your specific categories, rather than relying on generic wording.
3. Align Your Terms With Your Support Scripts
Whatever your customer support team (or you) says in emails and DMs should match your terms.
If you often offer store credit for change-of-mind returns, say so clearly. If you don’t accept returns for certain product categories for hygiene reasons (where permitted), spell that out.
4. Don’t Confuse Store Terms With Privacy Compliance
Your terms and conditions are not the same as your privacy documentation.
If you collect customer information (names, emails, addresses, payment details via a payment processor, browsing data via cookies), you will usually also need a Privacy Policy that explains what personal information you collect, how you use it, and who you disclose it to.
Many online stores also need a cookie notice or cookie policy depending on how tracking is handled, but the Privacy Policy is usually the core document customers expect to see.
5. Make Sure Your Checkout Actually “Binds” Customers To The Terms
Even well-drafted terms can be harder to enforce if customers were never given reasonable notice of them.
A common approach is to include a statement at checkout such as “By placing your order you agree to the Terms and Conditions” with a hyperlink to the terms.
From a practical point of view, you want your terms to be easy to find:
- Linked in the website footer
- Linked at checkout
- Referenced in order confirmation emails (where possible)
Common Compliance Risks For Online Store Terms In Australia
Most disputes don’t happen because a business had no terms at all - they happen because the terms were unclear, overly broad, or inconsistent with Australian legal requirements.
Here are common problem areas we see for Australian ecommerce businesses.
Refund Language That Conflicts With The ACL
The ACL gives consumers rights that can’t be excluded. Your terms should not suggest that customers have “no refunds” for faulty goods, or that you decide everything at your discretion.
It’s fine to explain your process, but the wording needs to leave room for non-excludable consumer guarantees.
Unfair Contract Terms (Especially For Standard Online Terms)
If your ecommerce terms are “take it or leave it” (which they usually are), they may be considered standard form terms. That means unfair contract terms can become a serious compliance risk.
Examples of terms that may raise red flags include:
- Giving your business the right to change the contract with no notice
- Allowing you to cancel orders at any time without refund (or without a clear basis)
- Automatic renewals without clear disclosure (for subscriptions)
- Excessive penalties or cancellation fees that don’t reflect real costs
If you charge fees for cancellations, make sure they are transparent and reflect genuine costs, and that your website messaging matches your terms. Overly aggressive cancellation fee wording can create issues under the ACL.
Misleading Statements About Warranties Or Guarantees
If you offer a “warranty”, make sure you use that term correctly, and don’t represent it as replacing consumer rights. Also be careful with statements like “no warranty applies to sale items” - sale items may still have ACL rights.
Missing Subscription And Auto-Renewal Terms
If you sell subscriptions (for example, a recurring product box), you need terms that clearly explain:
- Billing frequency
- Minimum term (if any)
- How cancellations work
- How customers can update payment details
- What happens if payment fails
Subscriptions are a high-dispute area, so clarity here is important.
Not Addressing Digital Products Or Instant Delivery
Digital products often require different refund logic and licensing wording (for example, that customers are buying a licence to use the content rather than ownership of the IP).
If you sell downloadable content, your terms should reflect how access is delivered, what happens if a file is corrupted, and how support is provided.
What Other Legal Documents Should Your Online Store Have?
Your ecommerce terms are essential, but they’re usually only one part of a compliant online store setup.
Depending on what you sell and how you operate, you may also want to consider:
- Privacy Policy: sets out how you handle personal information collected via your store, email marketing and customer accounts - usually a must-have for online businesses collecting customer details. A tailored Privacy Policy is a key starting point.
- Website Terms And Conditions: if your store terms focus heavily on sales, you may also want broader Website Terms and Conditions covering site usage rules, IP, and prohibited conduct.
- Shipping Policy: some businesses separate shipping details into a dedicated policy so it’s clearer and easier to update - a Shipping Policy can reduce delivery-related disputes.
- Returns Policy: similar to shipping, a stand-alone returns policy can help customers understand their options, but it must stay consistent with your terms and the ACL.
- Competition Terms: if you run promotions, giveaways or trade promotions, specific Competition Terms & Conditions can help you set clear entry rules and reduce complaints.
- Business Structure Documents: if you operate through a company (or plan to), your foundations like a Company Constitution can matter for decision-making, ownership and growth.
Not every store needs every document, but most growing ecommerce businesses end up needing more than just a single page of terms.
Key Takeaways
- Ecommerce terms and conditions help set expectations, reduce disputes, and protect your online store - they’re not just “legal fine print”.
- A Shopify terms and conditions template can be a starting point, but your store terms should be tailored to your products, shipping model, refunds process and customer journey.
- Your terms should be written to comply with Australian Consumer Law (ACL), especially around refunds, returns, warranties and product claims.
- Common risk areas include overly strict “no refunds” wording, unclear subscription terms, and liability clauses that try to exclude non-excludable consumer rights.
- Most online stores also need supporting documents like a Privacy Policy and (often) a Shipping Policy to create a clearer, more compliant customer experience.
If you’d like help putting together ecommerce terms for your online store (or reviewing your existing store terms), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








