Business

Getting Everything In Line When You're Selling Online

Issue 69

The pandemic has accelerated or predicated a wide range of changes for businesses of every size, especially in how they sell their goods and services online

At the beginning of last year many firms didn’t have an established online selling presence, while others only had a basic and peripheral resource in place which seemed more like an afterthought than something designed to make a tangible difference to their operations. Losing the capacity to sell through their regular channels for months at a time has forced many business owners to rethink their online operations and to consider how they can do things differently. But while it can be fairly easy to set up online selling, booking and payment systems, doing so brings with it a number of legal, procedural and technical issues that business owners might not have come across before, and which need to be managed properly to avoid problems further down the line. We’ve been working with a growing number of clients to ensure they’ve got everything in order, and a number of key considerations have emerged along the way. A basic starting point is to ensure the terms and conditions under which you’re selling to customers remain fit for purpose in relation to any new systems you’re introducing. For example, how are you managing the flow and security of the data that you’ll be collecting as part of your new online order process? Engaging with third party providers is often the easiest route for businesses to choose when looking to enhance their online presence, but these relationships need to be set up and managed properly. Data management issues often loom large in these arrangements and need careful thought. What sort of data will you need to share to make the systems work, do you need to update your terms with existing customers in light of new processes, and what arrangements do your chosen third-party providers have in place to protect your customers’ data? This latter point is especially important – while you might not have direct control of the providers’ systems, it will be you that comes under fire if any problems arise at their end, and your reputation that could suffer as a result. Similarly, if a third party provider’s systems go down, how quickly will they be fixed and how will the financial and operational consequences of customer sales being delayed or lost be addressed? Getting all the right contractual details in place for your third-party relationships from the very beginning will help you to avoid problems in the future, and can usually be done quickly and inexpensively. The design and functionality of any e-commerce website or app you develop also needs to be carefully considered. If they resemble the existing resources provided by your commercial rivals too closely, you could easily find yourself open to charges of infringing their intellectual property, a situation which can have very costly consequences. And if you do launch an app, managing any location tracking facilities included in its architecture in accordance with privacy laws is absolutely essential. Selling online has made a huge difference to the fortunes of many businesses over the last year and could have a transformational impact on your operations. Your online strategy is more likely to succeed if you have all your legal bases covered right from the beginning. Time and money spent getting off to the right start in this area will help to ensure that the investment in your online presence pays off.

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