The Right of Withdrawal in Online Retail – What Do I Need to Know as a Seller?

A missing or defective withdrawal notice can cost you a whole year of your customers' cancellation rights – let me show you what really matters when it comes to deadlines, the model form and compensation for loss of value.

You sell online – through your own shop, Amazon, Etsy or eBay. And then a customer returns the goods after three weeks without a word? Or you have just realised that your withdrawal notice has been defective for months? For online retailers, neither of these is a fringe issue. And both can prove costly: a mistake in your notice does not extend your customers’ right of withdrawal by days, but by up to a whole year.

In brief

For most contracts concluded online, consumers have a 14-day right of withdrawal without needing to give any reason. As a retailer, you must inform them of this right properly before the contract is concluded. If you fail to do so, or do so incorrectly, the deadline is extended by up to twelve months. Certain goods (custom-made, sealed items once opened, perishables) are exempt from the right of withdrawal. Where the value of the goods has been diminished through excessive handling, you can claim compensation for that loss of value – but only if you gave the correct notice beforehand.

How I can help you

• Reviewing and drafting your withdrawal notice and terms and conditions so they are legally sound
• Assessing whether your products fall under an exemption from the right of withdrawal
• Representing you in disputes over late, incomplete or damaged returns
• Advising on claims for compensation for loss of value where goods have been used excessively or opened
• Defending you against unjustified warning letters alleging a defective withdrawal notice

When you actually need a withdrawal notice

The right of withdrawal under section 312g of the German Civil Code (BGB) applies to contracts you conclude as a business with consumers away from business premises or by means of distance communication. The classic online purchase falls squarely within this. It does not apply in B2B dealings: if you sell exclusively to businesses, the obligation to provide a withdrawal notice falls away. In practice, a clean distinction within the ordering process is worthwhile here if you serve both groups of customers. The reason is simple: if it comes to it, you must be able to prove that the buyer was acting as a business.

Under section 312g(2) BGB, the right of withdrawal is excluded from the outset for certain categories of goods, for example:

• goods made to the customer’s specifications or clearly tailored to their personal requirements,
• goods that are liable to deteriorate rapidly or have a short expiry date,
• sealed goods that are not suitable for return for reasons of health protection or hygiene, where the seal has been removed after delivery (typically cosmetics, underwear, certain foodstuffs),
• sealed audio or video recordings or software, where the seal has been removed after delivery,
• newspapers, periodicals and magazines (with the exception of subscription contracts).

If you want to rely on one of these exemptions, you should have it examined legally on the facts of the individual case. The courts interpret these categories narrowly. A mistake here hits you twice over: you have neither given proper notice nor rightfully refused to take the goods back.

When the deadline starts – and the consequences of a defective notice

The withdrawal period is, as a rule, 14 days under section 355 BGB. When it begins is governed by section 356 BGB, and this varies depending on the type of contract:

• For the sale of goods, the period generally begins when the consumer, or a third party named by them (not the carrier), takes possession of the goods.
• Where several items from one order are delivered separately, the period does not begin until the consumer receives the final part-delivery.
• For services and digital content, the period begins as soon as the contract is concluded.

In every case, however, the period only begins once you have informed the consumer of their right of withdrawal in accordance with the requirements of Article 246a § 1(2) sentence 1 no. 1 of the Introductory Act to the Civil Code (EGBGB). If this information is missing altogether, or is incomplete or misleading, the period does not begin to run at all. The right of withdrawal then only expires twelve months and 14 days after the point at which the period would otherwise have started (section 356(4) BGB). In other words: a customer may, in certain circumstances, still withdraw months later if your notice was defective. And that then brings with it all the obligations to unwind the contract.

The procedure: what to do when a withdrawal is declared

1. Accept the declaration of withdrawal. The customer must state their decision to withdraw unambiguously. They do not need to give any reason. Since the reform, simply returning the goods with no accompanying statement is no longer, on its own, necessarily sufficient as a withdrawal. In practice, however, it is usually treated as one. Disputing it is legally risky.
2. Check that the deadline was met. For the deadline to be met, it is enough that the declaration of withdrawal was sent in good time – it does not have to have reached you. Say a customer sends an email at 11:50 pm on the 14th day. They have withdrawn within the deadline, even if you only read it the following day.
3. Refund payments. You must refund the consumer all payments, including standard delivery costs, within 14 days at the latest (section 357(1) BGB). As a rule, you use the same means of payment that the consumer used.
4. Exercise your right of retention. Under a contract for the sale of goods, you may refuse to make the refund until you have received the goods back or the consumer has provided proof that they have sent them (section 357(4) BGB). Whichever happens first is decisive. This protects you from having to pay out first and never getting the goods back.
5. Clarify the return costs. The consumer only bears the cost of returning the goods if you informed them of this in advance. If you offered to collect the goods yourself, the consumer is not liable for these costs.

Compensation for used or damaged goods

A frequent point of contention: the customer returns goods that have visibly been worn, unpacked and used – must the full purchase price still be refunded? Under section 357a BGB, the consumer owes compensation for any loss in the value of the goods. The condition is that they have handled the goods in a way that went beyond what was necessary to establish their nature, characteristics and functioning. The yardstick is what would be possible in a shop: trying clothes on is allowed, wearing them for days is not; testing a device is allowed, putting it into permanent use is not.

You can only assert this claim for compensation, however, if you first gave the consumer proper notice of their right of withdrawal. If your notice was defective, you lose not only the shortened deadline but, as a rule, the compensation claim as well. That is a further reason to have the notice drafted to be legally sound rather than copied from some run-of-the-mill template.

An example from practice

An online retailer of electronics accessories has used the same withdrawal notice since the shop opened. They took it from a template years ago and have not touched it since. A customer orders a pair of headphones, visibly uses them for several weeks and then returns them, saying they have “simply gone off the idea”. The retailer refuses to refund, pointing to the expired 14-day deadline. On legal examination, it turns out that the notice no longer matches the current statutory model. The period therefore never started to run, and the withdrawal was within time. The retailer has to refund the purchase price. Despite the visible signs of use, they cannot claim any compensation for loss of value. The reason: compensation under section 357a(1) BGB requires that the consumer was given proper notice before the contract was concluded. A correct notice provided only now does not work retrospectively on the use that has already taken place.

Common mistakes

• Outdated notice texts, or ones copied from the internet, that no longer match the current wording of the law.
• A missing or incomplete model withdrawal form, even though providing it is part of your information obligations.
• A blanket exclusion of the right of withdrawal for products that do not in fact fall under a statutory exemption – for instance, only slightly customised goods.
• Refusing to refund even though the goods have already been returned and proof provided – there is then no longer any valid right of retention.
• Automatically deducting “flat-rate” amounts for loss of value without genuinely examining whether the loss in value actually went beyond what was necessary to inspect the goods.
• Refunding too late, beyond the 14-day deadline, for instance because internal processes are too slow.

Frequently asked questions

Do I also need to provide my own withdrawal notice for sales through eBay or Amazon?

Yes. The statutory information obligations apply to you as a business regardless of the sales channel. Do not rely on the platform automatically providing a legally sound notice for your particular range of products. This is especially true if you carry products that are exempt from the right of withdrawal.

Can I exclude the right of withdrawal for special offers or reduced goods?

No, a reduced price or a sale promotion is not a statutory ground for exclusion. The exemptions under section 312g(2) BGB attach to the nature of the goods, not to their price or the occasion of the sale.

What applies if the customer returns the goods damaged because they were packed improperly?

If the goods arrive damaged because the consumer packed them poorly, that may give rise to a claim for compensation for loss of value. The condition is that you gave proper notice. According to the prevailing view, however, the business bears the general transport risk of the return, provided the consumer sent the goods off properly.

Does the 14-day period also apply to digital products such as e-books or software downloads?

With digital content, the right of withdrawal can expire early if the consumer expressly agreed to immediate performance and confirmed that they were aware they would lose their right of withdrawal. Without this twofold confirmation, the right of withdrawal remains in place, even if the download has already taken place.

How long do I need to keep proof that a withdrawal notice was given?

There is no deadline fixed by law for this. For evidential reasons, however, it is advisable to keep such proof beyond the ordinary retention periods under commercial and tax law. The reason: disputes over whether the notice was given in time can still arise years later.

Your next step

A defective withdrawal notice is not a mere formality but a commercial risk. It can leave you facing an extra year of your customers’ cancellation rights, lost claims for compensation for loss of value and, in the worst case, a warning letter. Have your withdrawal notice, your model withdrawal form and your terms and conditions reviewed thoroughly from the ground up, rather than improvising when a dispute arises. This is especially important if you sell products that may be exempt from the right of withdrawal. In the area of contract law I can help you set your online shop up on a legally sound footing and, in specific disputes with customers, clarify your position. Get in touch to arrange an initial consultation.

This article provides general information and is no substitute for legal advice in an individual case. Last updated: 2026-09-09.

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