Starting June 19, 2026, every online store in the EU will be required to include a Withdrawal button on their website. It might sound like a minor legal update, but it's actually a turning point: this button doesn't just change the legal landscape - it reshapes how returns processes work in ecommerce and how we design customer experiences.
In this article, I'll break down what the new law actually requires, how it impacts returns solutions, and why it's time to stop treating returns management as a cost center and start seeing it as a strategic growth lever.
What is the Withdrawal button - and what does the law require?
Under the updated EU Consumer Rights Directive 2023/2673, the EU now requires all online retailers to provide a clearly visible Withdrawal button that allows customers to cancel contracts - easily, accessibly, and in a legally compliant way.
Here's what that means in practice:
- The button must be easy to find and prominently placed
- It must be available throughout the entire withdrawal period (14 days)
- A complete online form must be provided (name, order number, preferred contact method, etc.)
- After submission, the customer must receive confirmation on a durable medium (e.g. email)
- The button must be clearly labeled with wording such as "Cancel contract"
In Germany, a similar law has been in effect since 2022. Several court rulings have already established exactly how the button must be implemented. Retailers who are still waiting are risking legal action - especially those selling cross-border.
Why this isn't just a UI problem
From our perspective - and from what we see in practice - integrating the Withdrawal button is far more than a design tweak - it's an operational overhaul of your entire returns workflow.
The moment a customer clicks "Cancel contract," a process begins that legacy tools simply can't handle cleanly. Many stores still rely on:
- Manual refunds via email
- Unstructured PDF forms
- Label generators with no workflow logic
- Zero automation for store credit, exchanges, or fraud checks
This new law forces us to rethink returns as an automated, documented, and user-friendly process.
Compliance is now a returns workflow automation problem
Being legally compliant doesn't come from ticking a box in your CMS. It requires a robust, automated returns system that meets these requirements:
- Automated acknowledgment confirmations
- AI-powered workflows for refunds, store credit, or exchanges
- Properly structured withdrawal forms with all required fields
- Automated return label generation with shipping carriers
- Full documentation and audit trail
With solutions like 8returns, you can automate every requirement without compromising on UX or scalability.
Compliance = competitive advantage
At first glance, this might feel like extra work. That reaction is understandable. But in practice, a very different picture emerges.
Retailers who get ahead of this aren't just protecting themselves from legal risk - they're gaining real operational advantages:
| Legal Requirement | Strategic Advantage |
|---|---|
| Prominently display the Withdrawal button | Build trust and reduce support costs |
| Ensure continuous availability | Technically stable, scalable workflows |
| Confirm via durable medium | Clear communication, fewer follow-up queries |
| Required fields in the withdrawal form | Better data for analyzing return reasons |
| Real-time processing | Foundation for automated refunds |
What a modern returns solution looks like in 2026
1. Self-service returns portal
Customers can initiate returns on their own - whether through the Withdrawal button or the traditional flow - with full integration into shipping, warehousing, and customer communications.
2. Automated returns workflow
With intelligent routing and dynamic decision logic, processes like refunds, exchanges, and store credit can run on autopilot.
3. AI for prevention and analytics
Analyzing return reasons helps reduce returns over time. For brands dealing with a high return rate, this is a game-changer.
Old vs. new: AI-powered workflows are not required by law
| Process Step | Before the Law | After the Button Goes Live (June 2026) |
|---|---|---|
| Withdrawal request | Email or phone | Withdrawal button with structured form |
| Acknowledgment | Manual (if at all) | Automated, with timestamp and medium |
| Return shipment | Label via email or paper | Automated return label system |
| Refund / Exchange | Manual decision | AI-powered workflow, e.g. store credit |
| Compliance documentation | None or inconsistent | Fully digital & audit-ready |
EU Withdrawal button - step-by-step checklist
☐ Button clearly visible on website - labeled "Cancel contract" or legally accepted wording
☐ Return shipping with tracking link and label - not legally required, but nice to have
☐ Form includes: name, contact details, order number
☐ Automated acknowledgment confirmation (e.g. via email)
☐ Return shipment with tracking link and label
☐ Complete audit trail for legal review
The bottom line: act now - don't wait until June
Many retailers think they still have time. But here's the reality: if you only update the UI without automating your entire returns process, you're setting yourself up for costly consequences - not just legally, but in customer satisfaction too.
At 8returns, we see it clearly: the winners in the years ahead won't just be compliant. They'll automate their returns processes, reduce their return rate, and drive higher net revenue retention at the same time.
