So, now you might have decided on the product you want to sell online. A complete research of the product has made up your mind to make it as your business instrument. So, have you researched on the different rules and regulations that might affect you while opening your E-commerce business?
If you are starting a business there are many things you should know and should focus on, as this would help you plan well to save you additional time and money that would be spent if any such issues pop up in future.
The issues that I would like to discuss, are integral parts of a business, but sometimes you never know it may come as a surprise. So, lets have a look at it.
The dreadful Word – TAXES
If you are new to the E-commerce business, then I guess you might be least aware of this fact that not only every country but also the states have different standards and guidelines when it comes to taxes.
For Example: If the demographics of your store is located in the UK where your product is exclusive of taxes and you are selling your product in some other country like Australia, then you need to include the taxes as per the country’s guidelines and then sell the product.
This is not the only thing, there are additional charges for certain products in certain states as well as countries.
To have a detailed knowledge about the different aspects, you should approach the local authority. They will help you understand the specific instances and also let you know if you are eligible for sales tax exemptions and reseller certificate.
With the boom in online sales, there are many payment gateways you will come across. Every payment gateway has some or the other restrictions on certain services and products. While approaching for any payment gateway you should know the transaction fee it applies while selling a product. You should also enquire about the aspects like, does it have a setup fee and if it provides any anti-fraud features.
Kartzhub will help you to connect with the right payment gateway as per your products and other requirements.
Trademarks, Patent, and copyrights
These are the most important factors a seller should look into as this could land him/her into some legal issues. Suppose you have set a logo of your company but have not yet registered it and you are using this logo in every product that you are selling online. Suppose, a person who recently started a business has copied your logo and registered it as well. The person can file a complaint against you for using the logo and he can gain some money from you, that too legally.
So, trademarks, patent, and copyrights should not be taken lightly. Research well before taking any symbol, word or phrase because you should not end up copying anybody.
There are many such products that are restricted for transporting by some of the shipping companies. If you approach any shipping company for your frequent product delivery, specify your products to them and if they agree, then only go forward with the agreement process
Products restricted by shipping companies:
- Alcoholic beverages
- Dry ice
- Fresh fruits and vegetables
- Hazardous materials
- Nail polish
Restriction on Age
Every website fulfills the terms set by COPPA – Children’s Online Privacy Protection Act. This act has many rules, but the basic rule that applies to any website is that you cannot collect any information from a child under the age of 13. If your target audience is the young crowd then you need to strictly follow the COPPA regulations. Every country has different guidelines for age restriction so you need to research it.
This is a very vital factor for all E-commerce websites. Online business has become the main target for data thefts. You need to have a complete research on this in order to provide a secure and encrypted checkout experience.
So, these are some of the factors that a business should pay attention to while launching your product or website in the market, as it could create problems in the future.