Once you have decided to begin your first e-commerce business, it is advisable to research the laws and regulations pertaining to your business. Unless your e-commerce store is in compliance with the laws, it may become difficult for you to run your online store successfully.
Knowing the legal aspects of an online business earlier is the key to dealing with these issues efficiently:
It is important to know that every state has different laws and standards regarding taxes. This means you need to understand your target market and the location. For instance, if your target market is in the US, you may need to display prices exclusive of taxes; and if it is Australia, you will need to include the tax on the displayed prices.
However, it may also depend on the product you are selling and where you are selling it from. For example, if your store’s location is in New York and you are selling clothing, you should know that clothing is Taxed in New York. Whereas in Britain, you will want to add Value Added Tax to all non-essential items. To cover all the taxes, a tax lawyer or professional can be of great help.
- Payment Methods:
There are various payment methods available for e-commerce stores. It is important to know that many of these methods have put some limitations on certain products and services that you intend to sell. So, when you are looking for the right payment method for your business, make sure to know certain important things such as the limitation on certain products, whether they are hosted or non-hosted, have anti-fraud features, or need any transaction fees, monthly fees or termination fees.
Few examples of popular online payment methods are Square, PayPal, Stripe, etc.
- Copyrights, Patents, and Trademarks:
People often tend to mistake these terms and their meaning. The United States Patent and Trademark Office has described these terms as follows:
- Trademark: this means a word, symbol, or design that distinguishes the source of goods and items of a business from those of its competitors.
- Patent: Patent is a property right for a limited duration regarding an invention in exchange for public disclosure of that invention.
- Copyright: This protects the work of ownership such as music, works of art or writings expressed tangibly.
It depends on the product that you want to apply for one of these. It is advisable to make sure that you are not infringing on other trademarks or patents with your business.
In case you hold substantial inventory, check your lease, zoning codes or deed to make sure if there are prohibitions on a business similar to yours.
There are various types of insurance available for small businesses such as product liability, general liability, commercial liability, professional liability, or home-based insurance. When you search for business insurance, make sure you check with the product liability insurance. This type of insurance is suitable for manufacturers, wholesale, retail or distribution of a product. While professional liability insurance protects your business from malpractice, negligence or error.
Now that you have an idea of what possible laws you may need to follow for your business, it is essential to make your business in compliance with the laws to avoid any legal complications in the future.
Author Bio :
John Adams writes about e-commerce, business and digital media marketing for https://understandingecommerce.com/. He encourages his readers to improve their quality of life by incorporating positive and good things. As he loves to share his insight about life experiences, he has contributed to the various online platform in the same niche.