Digital undo: let customers undo their purchase online

The digital cancellation feature allows your customers to exercise their right of cancellation directly online. The feature is designed to comply with the new EU requirement in the Consumer Contracts Act, which takes effect on June 19, 2026, and it works in all online stores without any setup. The customer cancels in two simple steps; you’ll be notified, and the order is automatically marked so you can keep track of it.

What is digital cancellation?

Cancellation is the customer’s legal declaration that they are canceling their purchase (“I am canceling order #1234”). As a general rule, consumers have a 14-day right of withdrawal starting from the day the item is received. The new legal requirement means that the cancellation must be possible online via a clear and easily accessible feature, not just via email or a paper form.

Cancellation is not the same as a return

It is important to distinguish between two things that are often confused:

• Cancellation is the declaration of intent itself. It states that the customer wishes to cancel the purchase. This is done via the digital cancellation feature.
• A return is the practical process of sending the item back. This is handled through the returns center.

A cancellation therefore does not automatically refund or cancel the order. It records the customer’s declaration and notifies you, and then you decide how to proceed. This gives you full control over the sequence of events—for example, waiting to issue a refund until the item has been received.

Here’s how the customer experiences it

The customer can access the cancellation page in two ways: via the link in the order confirmation email, or by navigating to the page themselves and entering their order number and email address. No login is required, so this also works for customers who shopped as guests.

1. The customer finds their order (via the link or by entering the order number and email address).
2. The order is displayed, and the customer can enter a reason. The reason is optional.
3. The customer clicks “Cancel Purchase.”
4. On the confirmation screen, the customer clicks “Confirm Cancellation.”
5. The customer sees a receipt on the screen and receives a confirmation via email.

These two steps are required by law. They ensure that the customer does not cancel by accident and that there is clear documentation of what has happened.

How to Handle a Cancellation

Every time a customer confirms a cancellation, three things happen automatically:

• The order is labeled “Canceled,” so you can view and filter it in the order overview.
• A timestamped note is added to the order with the customer’s reason, if any. The note serves as documentation.
• You’ll receive a notification email, and the customer will receive their confirmation.

You can find all canceled orders in one place by going to the order list and filtering by the “Canceled” label. On each individual order, you can read the note before deciding what to do next. You handle the financial transaction yourself: for example, you can issue a refund via “Credit Order” or your payment gateway, cancel the order, or forward it to the returns center if the item needs to be returned first.

Choose which label you want to use for order cancellations

The first time a customer cancels an order, the system automatically creates a red “Canceled” label. If you want to use a different label or rename it, you can manage this yourself. Go to Orders > Order Labels, open the desired label, and check the box next to “Use this label for cancellations.” Only one label can be the cancellation label at a time, so the selection automatically changes if you choose a new one.

Digital Content and Exceptions

Some items are exempt from the right of withdrawal. This includes, among other things, custom-made items, sealed hygiene products where the seal has been broken, and digital content where the download has begun. This feature does not block these orders, as the law requires that the customer always be able to exercise their right of withdrawal. It is up to you, as the store, to determine whether a withdrawal request can be rejected.

If you sell digital goods, the system records when the customer downloads the file. If the customer has already downloaded the item, they will see an informational note stating that the right of withdrawal may have expired. The customer can still exercise their right of withdrawal, and you have the download time as documentation when assessing the case.

Make the feature visible to your customers

The law requires that the cancellation feature be easily accessible for as long as the right of withdrawal is in effect. A “Cancel Purchase” link is automatically included in the order confirmation email, so your customers can always go directly to their specific order. If you want to make the feature even more visible, you can add a link yourself—for example, in your footer or in a menu—that points to the /withdrawal page.

Can I turn this feature off?

Yes. The digital cancellation feature is enabled by default, but you can disable it if you’d rather handle cancellations manually, such as via email. Go to your theme’s settings, find the Checkout section, and check the box next to “Disable digital cancellation.” This will hide all “Cancel Purchase” links in the store, and the cancellation page itself will become inaccessible. This option is available in the newer built-in themes, including Montana and Delaware.

Please note that the right to cancel is still required by law. If you disable the digital feature, you’re only removing the automatic online shortcut. You must continue to give your customers the option to cancel, and you must inform them correctly about their right to cancel. If you’re unsure about what applies to your store, we recommend seeking legal advice.

Frequently Asked Questions

Is the money automatically refunded when a customer cancels?
No. A cancellation is merely the customer’s declaration. The order is labeled “Canceled,” and you’ll be notified, but you decide and process the refund yourself—for example, via “Credit Order,” your payment gateway, or the returns center. This gives you control over when and how the amount is refunded.

How do I know when a customer has canceled an order?
You’ll automatically receive a notification email every time a customer confirms a cancellation. You don’t need to check manually. If you want a complete overview, you can always filter the order list by the “Cancelled” label.

Where can I find all the orders that have been canceled?
Go to the order list and filter by the “Cancelled” label. This will gather all cancelled orders in one place, and you can review them one by one. On each individual order, you can read the timestamped note with the customer’s reason, if provided.

Does the customer need to log in to cancel an order?
No. The customer doesn’t need to log in or create an account. They simply click the link in the order confirmation or enter the order number and email address. That’s why it also works for customers who shopped as guests.

How do I document a cancellation if a customer files a complaint?
Every cancellation is saved with the order, including a timestamp, the customer’s reason (if provided), and their IP address. The customer also receives a confirmation email that serves as proof on a durable medium. You can find the documentation by filtering the order list by the “Cancelled” label.

How is VAT handled when I refund a canceled order?
The cancellation itself does not change anything from an accounting perspective. VAT is not handled until you process the credit, and it follows your normal procedure for credit memos. If you’re unsure about the correct VAT treatment, we recommend consulting your accountant.

Can a customer cancel an order several months after the purchase?
No. The digital “Cancel Purchase” link is only displayed while the right of withdrawal is in effect. As a general rule, this is 14 days from delivery, with a small buffer to account for shipping time on orders that have already been shipped. Once the deadline has passed, the customer can no longer cancel the purchase online, and an old link will simply display a message stating that the deadline has expired. It’s up to you to decide whether, in exceptional cases, you’ll accommodate a late request.

Are we in compliance with the law if we do nothing?
The new requirement means that consumers must be able to cancel their order online via an easily accessible feature. The digital cancellation feature is designed specifically for this purpose and works in your store without any setup. As a store owner, you are responsible for compliance; if you have any doubts about your specific situation, you should seek your own legal advice.

Does this also apply to B2B sales and goods that are normally exempt?
The right of withdrawal applies to consumer sales, not B2B. The existing exceptions also remain in effect, such as custom-made goods and sealed hygiene products. The feature does not automatically block these orders. It is up to you to determine whether a cancellation can be rejected.

I have multiple stores. Do I need to set this up in each one?
The feature works in every store without any setup. There is no consolidated overview across stores, so you handle cancellations in each individual store, just as you do with orders. In each store, you can choose which label to use for cancellations.

How do I add a visible link to the feature myself?
Point a link to the /withdrawal page, for example, in your footer or a menu. If you’re using one of the newer themes, the cancellation page is built-in. If you’re using an older or custom-built theme, the theme must include a withdrawal.html template for the page to display. The link in the order confirmation email works regardless of the theme.

I’m copying withdrawal.html from Montana to my own theme. Should I copy anything else?
Yes. Montana’s withdrawal.html uses the components/alert.html component, which displays the error message “Your order was not found.” Without it, the page will fail if a customer enters an incorrect order number or email address. Therefore, be sure to copy components/alert.html as well when using Montana’s withdrawal template. This pitfall is specific to Montana because the template has only this one component include, which is easily overlooked. This requires some development work, so if you have a developer on staff, they can handle it.