A lot of businesses have had to transition online due to the pandemic. Others are considering it or have done so simply because this is an increasingly common form of business.
If you’re an existing online business, or are considering setting one up, do you have the following covered?
Here are 5 tips to consider when starting out an eCommerce business.
1. Business structure
If you’re not looking to spend a lot of money and want to keep things simple, then a sole proprietorship may be suitable for you to start.
If your long-term goals are more expansive, and you’re okay with extra set-up and maintenance costs, then setting up a limited company structure may be your best option. We can help you to do so, including registering your company and setting up your constitutional documents and shareholders agreement (if you have any co-founders).
2. Terms & conditions
Any business providing goods or services should have “T&Cs” that apply to their customers or users. Customers would be expected to agree to these terms before they can actually use your service. Usually, these terms will include things like:
- Price
- Payment
- Delivery
- Term
- Warranties
- Liability
3. Data privacy
If you collect any kind of personal information, you’ll need to ensure that you comply with privacy laws. This will include having a privacy policy and cookies policy, and other requirements will depend on the nature and extent of the personal information you process. If your online business targets customers overseas, you’ll need to consider not only your local laws but also the laws of the applicable foreign jurisdictions.
4. Data security
One of the most effective ways to prevent the loss of sensitive information is by strengthening your cyber security system. As an online business, there’s always some risk of a data breach or of falling victim to an elaborate scam or ransomware. We can help you to review your data security processes and documents. For example, you might want to prepare with a data breach response plan or a data security policy. With this in hand, you and your employees will know exactly how to protect your data and what to do if there is a data breach in your business.
5. Payment
While you’re still in the early stages of setting up your ecommerce business, it’s important that you decide what your payment options will look like. Will it be a one-off payment, commission, subscription model, or will there be other fees to use your service? We can document this in your T&Cs and then we can work out whether you’ll need other policies and processes in place. For example, you may need a refund policy or shipping policy to account for things like refunds you may have to issue, transfer of risk and ownership, lost packages and shipping costs.
We at Nicholas Bent & Associates are excited to assist you and your businesses in starting your path to greatness.
Talk to us about your legal affairs.
We’d be more than happy to assist!
