After going through the preparation of establishing your very first online store and laying out the plan for your products and inventory, what are you going to do next? Before venturing into a trendy online business, financial advisors and business analysts suggest that you should do some research about any possible restrictions and regulations that may have a direct or indirect effect on your first e-commerce store.
A keen understanding of these rules can help you save a lot of time, effort, and, more importantly, the money involved in your investment. It may be just one part of the equation, but at least we can sort out a portion of the issue.
DEALING WITH TAXES
First of all, you have to consider that taxes vary from state to state. If you are dealing with international clients, you need to have a keen understanding of your target country’s tax and law system. A good lawyer can explain these things to you.
In the United States, for instance, most online stores display the prices of their products exclusive of taxes and other surcharges. However, if you are dealing with other countries, such as Australia, shoppers want to see the prices that already include the tax and other mandated fees.
It is still recommended that you should talk to tax professionals to cover all grounds when it comes to taxes and regulations of your target market.
With the day and age that we are in, there are several options on how you can collect payments from your clients. This is also one of the key pieces that will keep your business machine and investment running.
One important note to consider when opting-in for payment gateways is if they have any restrictions or limitations around a specific product. In addition to that, you should also ask if these payment gateways are hosted or non-hosted; if they include any anti-fraud features; or if they deal with specific fees such as transaction, termination, monthly or setup fees.
Major e-commerce sites use multiple payment gateways, and the most common option is listed below. You can also research what they have to offer, the pros and cons, and other important details about these payment gateways.
● PayPal powered by Braintree
● First Data
● QuickBooks Online
LEGAL MARKET ISSUES – TRADEMARKS, PATENT, AND COPYRIGHTS
Many people, even professionals, fall into this traphole. However, what exactly these terms mean? The United States Patent and Trademark Office provides helpful clarifications about these confusing words.
● Trademark – Trademark defines as a word, symbol, phrase, and/or design that gives the product a unique identifier for other party’s products or goods.
● Patent – It is a property right for an invention provided by the United States Patent and Trademark Office for a certain amount of time. For an individual to get a patent for a product, the full public disclosure of the invention is needed.
● Copyright – This helps individuals to protect the time and effort they put into goods and products they created.
Knowing this stuff helps the business starters, especially if the nature of your business involves selling merchandise. Checking your product listing and comparing it to others that have their own patents or trademarks may save you a lot of money, effort, and investment.
Choosing the right shipping partners is a crucial part of your investment. However, it is equally important to know if there are any restricted items that most shipping companies don’t deal with.
It is also worth mentioning that not all companies have the same restricted items. It may be best to set a meeting, talk to them, and know what products you can and can’t ship.
Some of the most common restricted items are:
● Alcoholic beverages
● Perishable Goods
● Hazardous Materials
● Poisonous substance
If ever you are in a pinch and you really need to send out these types of products, other shipping companies that can cater to your needs. However, they require extra paperwork and of course, additional handling fees. Some also ask for insurance.
Materials based from Big Commerce
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