Hiring a Developer to Build Your E-commerce Platform: Contract Essentials

For brick-and-mortar retailers, moving online is more than “getting a website.” Your e-commerce platform becomes a storefront, a checkout counter, a customer service desk, and—if you’re not careful—a source of unexpected costs. The fastest way to protect your budget, timeline, and brand is to treat your build like a real business project with a clear ecommerce website contract (or online store development agreement) that spells out what you’re buying, how it will be delivered, and what happens when things change.

This guide walks you through the essential contract terms to include when you hire ecommerce developer contract services—so you can launch confidently and avoid common disputes.

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Why contracts matter more when you’re transitioning from physical retail

In a physical store, you can usually see problems early: a contractor misses a deadline, materials don’t arrive, a fixture doesn’t fit. In e-commerce development, you can lose weeks (and thousands of dollars) before you realize the scope was misunderstood or the platform can’t support your real-world needs (inventory, tax, shipping, returns, POS integration, etc.).

A strong contract for building ecommerce site functions like a blueprint. It aligns expectations, sets guardrails for changes, and gives you enforceable rights if the project goes off track.

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Start with the right contract structure

Before diving into clauses, confirm you’re using the right contract format. Most e-commerce builds use one of these approaches:

• Master Services Agreement (MSA) + Statement of Work (SOW): Best for ongoing relationships, future enhancements, and support retainers. The MSA contains legal terms; the SOW contains project specifics.
• Single online store development agreement: Works for one-time builds, but make sure it still includes detailed scope, deliverables, and support.
• Agile / Time & Materials with rolling SOWs: Useful when requirements are evolving, but it must include budget controls, prioritization rules, and acceptance criteria.

If you’re a retailer new to software procurement, an MSA + SOW model tends to be easiest to manage: you can update the SOW as you learn without renegotiating the entire agreement.

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1) Scope of work: define what “done” means in retail terms

Scope is the #1 source of conflict in an ecommerce website contract. “Build a Shopify site” is not scope. A strong scope answers:

Core deliverables (examples)

• Platform and architecture (Shopify, Magento/Adobe Commerce, WooCommerce, custom headless, etc.)
• Number of templates/pages and which ones (home, category, PDP, cart, checkout, account, returns, store locator)
• Checkout configuration (guest checkout, gift cards, discount stacking rules)
• Product catalog setup (variants, bundles, subscriptions, digital goods)
• Content migration (blog posts, product descriptions, images)
• Integrations (POS, ERP, inventory, CRM, email marketing, loyalty)
• Shipping and tax rules (carriers, zones, in-store pickup, Avalara/TaxJar)
• Accessibility requirements (e.g., WCAG 2.1 AA target)
• SEO basics (redirects, metadata templates, schema markup where applicable)
• Analytics and tracking (GA4, Meta pixel, server-side tagging if needed)

What’s explicitly out of scope

Your contract for building ecommerce site should list exclusions to prevent assumptions:

• Product photography
• Copywriting
• Ongoing SEO/content marketing
• Paid ads setup
• Advanced personalization/AI recommendations
• Marketplace integrations (Amazon, Walmart) unless specified

Tip for brick-and-mortar retailers: Write scope based on how you actually operate: returns policy, in-store pickup flow, gift receipts, loyalty rules, employee roles, and tax exemptions. These “small” things often become major rework if discovered late.

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2) Timeline, milestones, and dependencies (your team has responsibilities too)

A timeline clause should include:

• Project start date and estimated launch date
• Milestones (discovery, design approval, development, UAT, launch)
• Review windows (e.g., “Client will provide feedback within 5 business days”)
• Dependencies (POS access, inventory data, brand assets, domain credentials)

Also include a realistic clause acknowledging that the developer is not responsible for delays caused by missing client inputs.

Retail reality check: If your inventory or POS data is messy, the contract should call out data cleanup as a client task (or a paid add-on).

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3) Pricing model: fixed fee vs time-and-materials (and how to avoid surprises)

E-commerce projects commonly price in three ways:

Fixed fee (best when scope is stable)

• Include detailed deliverables and acceptance criteria
• Include a change order process (see below)

Time & materials (best when scope will evolve)

• Include an hourly rate card
• Set a monthly cap or “not-to-exceed” limit
• Require written approval for exceeding estimates

Hybrid

• Fixed fee for discovery/design, T&M for development sprints

Your hire ecommerce developer contract should also cover reimbursable expenses (plugins, stock photos, paid themes, environments, third-party APIs) and who pays them.

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4) Payment terms tied to deliverables (not just dates)

Avoid paying most of the project upfront. Instead, link payments to tangible outcomes:

• Deposit (10–30%) upon signing
• Milestone payments upon completion/approval of phases
• Holdback (5–15%) until launch or end of warranty period

Include invoicing cadence, late fees (if any), and dispute timelines.

Practical safeguard: Add a clause that you will not be charged for work that was not authorized in writing (especially under T&M).

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5) Change management: the clause that saves relationships

Every retailer discovers new requirements mid-build (subscriptions, complex promotions, split shipments, etc.). Your online store development agreement needs a clear change order process:

• What qualifies as a “change” (scope, timeline, integrations, new pages/features)
• How changes are requested (written request, ticketing system)
• How changes are estimated (cost and schedule impact)
• Who can approve changes on your side
• What happens if you can’t agree (continue with original scope; defer change)

Without this, you risk “scope creep” and budget drift—or the developer may claim something is out of scope after you assumed it was included.

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6) Acceptance testing: define how you approve work

Retailers often think “it looks good” is acceptance. That’s risky. Use objective acceptance criteria:

• Functional requirements (checkout works across devices, taxes calculate correctly, coupons apply)
• Performance requirements (page load targets, Core Web Vitals goals where feasible)
• Browser/device support matrix
• Bug severity definitions (Blocker/Major/Minor) and fix timelines
• UAT process and sign-off rules
• What happens if you don’t respond (e.g., deemed accepted after X days)

Include a clause stating that launch will not occur until critical/blocker issues are resolved (or are documented as accepted exceptions).

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7) Ownership and IP: you should own what you pay for

Your ecommerce website contract must address intellectual property clearly:

You should typically own:

• Custom code written specifically for your store (upon full payment)
• Designs and creative assets created for your brand
• Your content and product data

Developer may retain:

• Pre-existing tools, libraries, frameworks, and reusable components
• General know-how

Also address:

• License terms for third-party themes/plugins
• Who holds accounts (Shopify, hosting, domain registrar)
• Transfer process if you switch vendors

Retailer-friendly rule: Ensure all critical accounts (domain, platform subscription, payment gateway) are in your company’s name, not the developer’s.

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8) Confidentiality, customer data, and security obligations

If your developer touches customer data, your agreement should include:

• Confidentiality obligations
• Data protection requirements (encryption, least privilege access)
• Secure credential handling (no passwords in email; use a vault)
• Breach notification timelines and cooperation
• Compliance expectations (PCI DSS for payments—usually handled by gateways, but your site still must follow secure practices)
• If applicable: a Data Processing Agreement (DPA) for GDPR/UK GDPR/CCPA-related responsibilities

If you’re collecting emails, addresses, or loyalty info, treat it as a valuable asset. Spell out that customer data belongs to you and cannot be used for the developer’s purposes.

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9) Warranties and post-launch support (your “grand opening” matters)

Many contracts stop at launch, but you need clarity for the first 30–90 days after going live.

Include:

• Warranty period (commonly 30–90 days) for fixing defects at no additional cost
• What counts as a defect vs a new feature
• Support channels and response times (especially during launch week)
• Maintenance options after warranty (retainer hours, SLA tiers)

For retailers, launch is not the finish line—it’s opening day. Budget for post-launch stabilization and training.

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10) Service levels and uptime (especially for custom hosting)

If your platform involves custom hosting or a headless setup, consider adding SLA-style commitments:

• Uptime target (e.g., 99.9% for hosting provider)
• Backup frequency and restoration testing
• Monitoring and incident response time
• Disaster recovery expectations

If you’re on Shopify or another managed platform, SLAs may be governed by the platform provider—but your developer should still commit to reasonable response times for issues within their control.

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11) Termination rights: how to exit without losing your store

Sometimes you need to change direction or replace a vendor. Your contract for building ecommerce site should include:

• Termination for convenience (with notice and payment for work performed)
• Termination for cause (material breach, failure to meet milestones after cure period)
• Transition assistance (handover documentation, code transfer, admin access)
• A requirement to deliver work-in-progress at termination (to the extent paid for)

This is where ownership and documentation clauses become crucial.

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12) Liability limits and indemnities: allocate risk realistically

Most developers will limit liability (often to fees paid). You’ll want to ensure key protections still exist:

• Mutual indemnity for IP infringement (if their custom work infringes someone else’s IP)
• Indemnity for gross negligence or willful misconduct
• Carve-outs from liability caps for confidentiality breaches, data security incidents (negotiable), and unpaid fees
• Limitation of consequential damages (common, but understand what you’re giving up)

If you’re not used to tech contracts, this section can be dense—worth reviewing carefully to ensure the risk matches the project size.

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13) Documentation, training, and admin access (don’t get locked out)

Brick-and-mortar teams need to run the store after launch. Add contract language for:

• Admin training sessions (recorded)
• Written SOPs (how to add products, create discounts, manage returns)
• Documentation for integrations and customizations
• Delivery of credentials and access list
• Minimum handover package (architecture overview, theme/code notes)

This reduces ongoing dependency and helps new staff onboard quickly.

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14) Key clauses retailers often forget (but shouldn’t)

Content and image rights

Ensure you have rights to use product images, fonts, and brand assets. If the developer sources assets, confirm licensing.

Subcontractors

Require disclosure and hold them responsible for subcontractor work and confidentiality.

Non-solicitation (optional)

Sometimes included to prevent hiring each other’s employees/contractors for a period.

Dispute resolution and governing law

Specify venue, governing law, and whether mediation/arbitration is required.

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A practical checklist for your e-commerce development contract

Use this as a quick pass before signing:

• [ ] Detailed SOW with deliverables, exclusions, and platform choices
• [ ] Milestones with review windows and clear dependencies
• [ ] Pricing model + caps + rules for third-party expenses
• [ ] Change order process in writing
• [ ] Acceptance testing criteria and sign-off mechanism
• [ ] IP ownership and account control in your company’s name
• [ ] Security, confidentiality, and data protection obligations
• [ ] Warranty period + post-launch support options
• [ ] Termination + handover rights + work-in-progress delivery
• [ ] Liability, indemnities, and reasonable carve-outs
• [ ] Documentation and training deliverables

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Final thoughts: protect the store you’re building before it opens

When you’re moving from a physical location to a digital storefront, the goal isn’t just to “get online”—it’s to build a reliable revenue channel that your team can operate confidently. A clear online store development agreement (and a detailed ecommerce website contract) helps you control scope, budget, timelines, and ownership—so the developer relationship stays focused on execution, not misunderstandings.

If you want a faster way to generate a strong starting draft for a hire ecommerce developer contract or contract for building ecommerce site, you can use Contractable, an AI-powered contract generator, to create and customize development agreements for your project: https://www.contractable.ai

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Other questions you might ask next

1. What’s the difference between a Statement of Work (SOW) and a Master Services Agreement (MSA) for e-commerce development?
2. Should I choose Shopify, WooCommerce, or a custom/headless build—and how should the contract reflect that choice?
3. What acceptance criteria should I use for checkout, taxes, shipping, and promotions?
4. How do I structure change orders so my developer can move fast without blowing the budget?
5. What post-launch support terms (SLA, retainer, warranty) are reasonable for a small retail team?
6. Who should own the domain, hosting, Shopify account, and third-party integration accounts?
7. What security clauses should be included if the developer will access customer data?
8. How can I avoid vendor lock-in and ensure smooth handover if I switch developers?
9. What are typical payment milestones for an e-commerce platform build?
10. Do I need a separate Data Processing Agreement (DPA) for GDPR/CCPA compliance?