Setting up an online shop can be appealing. You can be your own boss, work in the comfort of your own home, and have flexible hours. However, there are some things you need to think through before launching your online shop. This article outlines important information you should consider before establishing your online shop.
1. Sales Platforms
Before establishing your online shop, consider the system you will use to sell these products. There are many established and reputable platforms already on the market, and one straightforward way of selling your products online is to use an existing marketplace such as eBay, Etsy or Gumtree. Using an existing marketplace allows you to sell your products without investing money into creating your website.
If you choose to use an existing marketplace, you need to understand the rules and requirements of that marketplace, including its marketplace terms and conditions. You should read the terms and conditions carefully and ensure that you are:
- able to sell and market your products in a way that you intend; and
- aware of any clauses which may not be favourable to you.
2. Payment Methods
The next step is to consider how your customers will pay you for your products. There are many online payment options available. One of the most popular is credit or debit card payment because of its ease and convenience.
If you choose to accept credit or debit cards, you must take steps to ensure that card details are stored in a safe and secure way, as payment details are a class of personal information and should be treated in accordance with applicable privacy laws.
Many businesses choose to offer payment through a third-party payment processor, such as PayPal or Stripe. If you choose to engage a third-party payment processor, you should read and ensure that you understand the terms and conditions carefully before being bound by the terms.
Continue reading this article below the form3. Minimum Recommended Resale Price
Suppose your prices are better than in-store prices. Accordingly, consider whether your supplier is imposing a minimum recommended resale price on you and threatening to cease supply if you do not comply. This is known as ‘resale price maintenance’ and is not permissible under the Australian Consumer Law. A recommended resale price must be used as a guide only, and a supplier cannot enforce it. It is against the law for the supplier to refuse to supply to you for failing to sell at the recommended resale price.
4. Shipping
You must consider how you will ship the products to your customers. There are many logistics and delivery providers available, so you will need to do your research and decide which provider can accommodate your needs best. You should research the different logistics and delivery providers available in the territories you will deliver to and ensure that you do your due diligence to ensure that they are reliable; this is important as you need to deliver the product to fulfil your obligations and complete the contract. You should consider including service levels in your contract with the delivery provider so that if they fail to meet delivery timelines over a certain period, you can terminate the contract and find another provider.
Alternatively, you might wish to offer flat-rate shipping. If you do so, ensure that these fees are clearly presented to your customer before they check out.
It’s now easier than ever to start a business online. But growing and sustaining an online business requires a great deal of attention and planning.
This How to Start an Online Business Manual covers all the essential topics you need to know about starting your online business.
The publication also includes eight case studies featuring leading Australian businesses and online influencers.
5. Customer Service and Refunds
Customer service is an important part of your business and your brand. As such, it is important to have a strategy for handling customer service. While this is largely a commercial decision for you, you must handle customer complaints as required by the consumer guarantees in the Australian Consumer Law. This means that in certain situations, you must provide your customer with a refund or an exchange. You can also offer additional services and refunds if you want, for example, a refund for a change of mind. This is not required by Australian Consumer Law.
Key Takeaways
With the internet becoming increasingly accessible, setting up an online business could be your dream. If you need help launching your online shop, our experienced e-commerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A marketplace is a system you can use to sell these products. For example, this may include eBay, Etsy or Gumtree. Using an existing marketplace allows you to sell your products without investing money into creating your website.
Consumer guarantees are consumer rights that you must provide your customers as per the Australian Consumer Law. You cannot contract out of these rights.
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