First time running a small online store (handmade leather goods). I set up my terms and conditions quickly using a template and skipped the dispute resolution section because it looked complicated. My thinking was, if something goes wrong, we can 'work it out like adults'. Fast forward eight months: I have an unhappy customer claiming a custom order arrived damaged. They rejected my offer of a partial refund and are now saying they will file a chargeback and leave reviews everywhere. I'm worried this will become a pattern and I have no formal step to point to. Has anyone successfully added a dispute process retroactively? Or am I stuck dealing with this ad hoc forever?
Conflict
I didn't include a dispute process and now regret it
Retroactively is tricky because anything you add now only applies to future orders, not the one alreqady in progress. For this customer, I'd keep everything in writing And stick to what you already offered. After that, get a clause in place for new buyers. You're not stuck forever, just not for this current mess.
Can I ask what the clause would even say? I run a small print shop and my terms are also a template. A dispute process sounds like something that could backfire if I write it badly.
It usually backfires because people copy a clause from a big retailer that has an arbiTration requirement or something. For a small handmade shop, a short plain-language section is better. Something like: contact us within 7 days with photos, we will respond within 3 business days, and if we cannot resolve it we agree to try mediation before filing a chargeback. No legal threats, just a path.
This is why I don't do custom orders. Chargebacks on custom stuff are brutal because the buyer can claim the item wasn't as described and the card issuer often sides with them. Did you have a signed approval of the design before you made it?
I do have a message thread where they approved the sketch and the leather color. It's not a formal sign-off, but it's there. I didn't think to put it in a document. I'm mostly worried that without an explicit process, the chargeback will look like I was disorganized and they'll win.
The chargeback decision usually cmoes down to evidence, not whether your terms mention a dispute process. Save those messages as a PDF. The bigger issue is your partial refund offer is already on record. If you offered a specific amount, don't undercut it now. Whatever you do, don't stop replying to them.
Also check your payment processor's dispute rules. Some of them have a required response window that's shorter than you'd expect. I almost missed one because the email went to spam.
salt_and_cedar's version makes sense. Would you put that in the the checkout flow or just in the terms page? I feel like nobody reads the terms page.
Both. One line at checkout that says 'by ordering you agree to our returns and dispute process' with a link, plus the full page. But honestly the best prevention is an order confirmation email that restates the key points: timeline, what counts as damage, how to report it. People screenshot emails faster than they read terms.
I'd add one thing. Don't make the process sound like a legal trap. Mine says 'if we can't agree, we'll use a neutral mediator before either of us escalates.' Two customers have mentioned it as a reason they trusted me. Small sample but it surprised me.
Thanks, this helps. I'm going to reply to the customer today with a clear, calm summary of what was offered and propose a phone call. Then I'll draft the new section this weekend. I'll probably come back with the wording before I publish it.