How can I prevent Etsy buyers from requesting refunds on digital downloads?

Hi! You can’t stop a buyer from requesting a refund on Etsy, but you can drastically reduce “I thought this was physical” purchases by adding a couple of very explicit friction points before checkout—and then handling refund messages in a calm, consistent way that protects your shop (and reviews).

How to reduce mistaken digital purchases (this helps a lot)

1) Put “DIGITAL DOWNLOAD – NO PHYSICAL ITEM” on the first photo.
Not just the description—make it unmissable in the thumbnail/first image. A lot of buyers never read past photos.

2) Use a required Personalization box as an acknowledgment (even if it’s not personalized).
For example: “Type YES to confirm this is a digital download and no physical item will be shipped.” This is one of the best ways to filter out impulse buyers who didn’t read.

3) Repeat the message in 3 places buyers actually notice:

• Title (near the front): “Digital download” / “Instant download”
• First photo overlay (big text)
• The first 1–2 lines of the description (before anything else)

4) Make your mockups honest.
If your listing photos show printed products (posters, planners, stickers, etc.), add a caption like “Mockup only—files are delivered digitally.”

5) Add it to your Shop FAQ + Message to Buyers.
Etsy doesn’t let you set return/exchange policies on digital listings the same way as physical items, so using your FAQ and “Message to Buyers” is a smart backup for clarity.

How to handle refund demands for digital downloads

Etsy tells buyers that digital items can’t be returned or canceled, but you can still choose to refund if you want to as a customer-service decision (especially if you believe it was a genuine mistake). A simple approach many sellers use is:

• If the buyer seems genuinely confused and you want to avoid drama: offer a one-time courtesy refund and politely restate it’s a digital item (and that you’re doing it as an exception).
• If they’re pushy or threatening reviews: stay polite, keep everything on Etsy Messages, and don’t argue—just repeat the facts and your policy.

Here’s a message you can copy/paste and tweak:
“Thanks for reaching out! Just a heads-up: this listing is an instant digital download (no physical item is shipped). You can download the files from your Etsy account under Purchases. Since digital items aren’t returnable/cancelable on Etsy, I’m not able to offer a refund, but I’m happy to help you download/open the files or confirm you purchased the correct item.”

If you do decide to refund as goodwill, you can add:
“I’ve gone ahead and refunded this as a one-time courtesy since it was an honest mistake. For future orders, please note this shop sells digital files only.”

What to do about negative reviews (and threats)

• If a buyer threatens a bad review to force a refund, that’s considered extortion on Etsy. Keep the messages on Etsy and report the message/review if it happens.
• Etsy usually won’t remove a review just because it’s unfair, but they may remove reviews that violate policies (for example: extortion, private info, hate speech, or if it’s only about a third party).
• If the review stays, a short, calm public response is often your best move (and it reassures future buyers). You have a limited window to respond, so don’t wait too long.

A solid public reply template:
“This is a digital download listing (no physical item). I messaged the buyer with download instructions and I’m happy to help if they need assistance accessing the files.”

If you want, paste one of your listing titles + your first photo text (exact wording), and I’ll rewrite it to be more “mistake-proof” without hurting Etsy SEO.