{"id":178662,"date":"2022-11-22T18:38:51","date_gmt":"2022-11-22T18:38:51","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=178662"},"modified":"2026-02-19T08:56:20","modified_gmt":"2026-02-19T08:56:20","slug":"online-startup-legal-considerations","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/startups\/online-startup-legal-considerations\/","title":{"rendered":"Four Legal Considerations for an Online Startup in the UK"},"content":{"rendered":"\n<p>In our increasingly digital world, online startups are becoming more common. An online startup is a business that exists primarily online, so it typically does not have retail premises for customers to visit. Instead, it takes all orders as online transactions through a website such as an online store.<\/p>\n\n\n\n<p>One main advantage of online businesses is a lack of investment in the physical retail space. Online startups also tend to require less staff than launching a business based at a physical location. However, some legal considerations exist when launching an online startup business in the UK. This article will explore four legal issues to give you a better understanding of how best to establish a new startup organisation with reduced legal risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">1.&nbsp; Deciding Whether to Use an Existing Online Marketplace<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The starting point is to decide whether to process all orders through your website or use an existing online marketplace (such as <\/span><a href=\"https:\/\/www.ebay.co.uk\/\"><span style=\"font-weight: 400\">eBay<\/span><\/a><span style=\"font-weight: 400\"> or <\/span><a href=\"https:\/\/www.etsy.com\/\"><span style=\"font-weight: 400\">Etsy<\/span><\/a><span style=\"font-weight: 400\">) instead.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Designing a website can be a time-consuming and expensive process, and this is especially true when using it as a sales platform.&nbsp; Due to this, many UK online startup businesses advertise their products on their website but use links to online marketplaces (such as eBay).<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Some companies use an even simpler system, such as:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">only having a placeholder website that links directly to a goods profile page on an online marketplace (such as a Seller page on eBay); or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">not having a website and simply listing their goods directly on online marketplaces (such as Etsy or <\/span><a href=\"https:\/\/www.notonthehighstreet.com\/\"><span style=\"font-weight: 400\">Notonthehighstreet<\/span><\/a><span style=\"font-weight: 400\">).<\/span><\/li>\n<\/ol>\n\n\n\n<p><span style=\"font-weight: 400\">The main disadvantage of using an online marketplace is paying commissions on sales.&nbsp;However, this is usually good value given that it reduces online hosting fees for your business and is usually more secure from a cybersecurity standpoint.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">2. Suitable Delivery Provider<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">One of the most common and irritating problems of the online age for customers is delayed delivery of items. This is particularly the case when the delivery takes so long that the individual may as well have bought it from a physical store.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Whilst delivery costs are ever increasing, the choice of delivery company can significantly impact customer satisfaction. A common occurrence in the UK is for a business to pick a delivery partner and then change it following numerous complaints of damaged items. There is little point in processing and taking orders if a decent number of goods are getting damaged on the way<\/span>.<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">&nbsp;It is worth picking a more reliable delivery partner, even if it costs more per order to do so, to <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/customer-contract-complaint\/\">avoid customer complaints<\/a>. Happy customers who receive deliveries quickly leave good online reviews.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Sensible Refunds Policy<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Some business owners believe the refund issue is more of a grey area for websites concerning physical stores. However, customers&#8217; refund and return rights are no different for website purchases than those made in physical stores.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">With this in mind, having a <\/span><a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/refund-policy\/\"><span style=\"font-weight: 400\">clear, straightforward refund policy<\/span><\/a><span style=\"font-weight: 400\"> on your website or online marketplace business page is crucial. Whilst these will vary in nature, they tend to confirm some of the following:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">the circumstances in which a full refund is due;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">when a customer should return an item for inspection or repairs;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">situations in which UK consumers can replace the item or obtain store credit; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">evidence required to process a refund or returns request (for example, photos above a specific resolution sent to a specified email address).<\/span><\/li>\n<\/ol>\n\n\n\n<p><span style=\"font-weight: 400\">Due to their inevitable nature, you should build the cost of refunds or returns into your company\u2019s business model.&nbsp; It is essential to have an efficient system in place to appease customers and encourage them to return to your business.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">4. Secure Payment Method System<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Your business must use a safe and secure payment system. The risks of not doing so are immense.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Many online startups use online marketplaces to process payments as their payment systems tend to be more robust and covered by insurance. So, for example, your business (or online marketplace) may allow customers to use PayPal or similar payment services.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you seek to use your payment system, the credit or debit information must be secure and encrypted so that cybercriminals cannot access it. Any credit or debit information theft is likely to breach the GDPR. Businesses are required to take all necessary steps to secure payment information. Failure to do so is likely to result in fines of up to \u00a317.5m<\/span>.<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/09\/06164254\/uk-startup-manual-290x410-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">UK Startup Manual<\/div>\n            <div class=\"body-text\">\n                <p>LegalVision&#8217;s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/uk-startup-manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">There are many legal considerations when <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/terms-and-conditions\/\"><span style=\"font-weight: 400\">starting an online startup in the UK<\/span><\/a><span style=\"font-weight: 400\">. Some of these concern the nature of your business&#8217;s web presence and payment methods. Legal considerations are crucial and must be carefully thought over, and getting it wrong can lead to problems such as a fine from the ICO. Therefore, many small businesses and online startup business owners obtain legal services and documents from expert e-commerce experts.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help with the legal steps required for an online startup, our experienced<\/span> <a href=\"https:\/\/legalvision.co.uk\/services\/ecommerce-online-business\/\"><span style=\"font-weight: 400\">E-Commerce and Online Business lawyers<\/span><\/a><span style=\"font-weight: 400\"> 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 <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1669141258503\"><strong class=\"schema-faq-question\"><strong>Why are legal considerations in place?<\/strong><\/strong> <p class=\"schema-faq-answer\">UK law places various legal requirements on online businesses, including companies that carry out business through e-commerce platforms (such as Amazon Marketplace). The priority of the law is to protect consumers from harm.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1669141278560\"><strong class=\"schema-faq-question\"><strong>Why do business owners obtain legal advice on these issues?<\/strong><\/strong> <p class=\"schema-faq-answer\">Because failing to comply with these legal requirements can be costly regarding your company&#8217;s finances and reputation.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"29d45c3efd\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/178662\" \/>            <input value=\"https:\/\/legalvision.co.uk\/startups\/online-startup-legal-considerations\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Four Legal Considerations for an Online Startup in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In our increasingly digital world, online startups are becoming more common. An online startup is a business that exists primarily online, so it typically does not have retail premises for customers to visit. Instead, it takes all orders as online transactions through a website such as an online store. One main advantage of online businesses<a href=\"https:\/\/legalvision.co.uk\/startups\/online-startup-legal-considerations\/\">Continue reading <span class=\"sr-only\">&#8220;Four Legal Considerations for an Online Startup in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13349,"featured_media":3248,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"175169,176096,176538,4590,174081,176312","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[31],"tags":[20,54,117,173],"class_list":["post-178662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startups","tag-small-business","tag-online-business","tag-startup","tag-startup-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legal Considerations for an Online Startup | LegalVision UK<\/title>\n<meta name=\"description\" content=\"If you are an online startup in the UK there are some legal considerations you need to be aware of. 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He has particular expertise in Commercial and Employment litigation, as well as data protection and privacy regulations. He is a qualified Solicitor in England and Wales and has a decade of legal experience, including advocacy within civil courts and Tribunals. Tom specialises in civil and employment litigation. He has extensive experience in advising employers and companies as to the requirements of employment law and data protection rules, as well as day-to-day advice on smooth running from a commercial perspective. Qualifications: Professional Skills Course - Law, University of Law; Legal Practice Course - Law, College of Law; Bachelor of Laws, University of Southampton.","sameAs":["https:\/\/www.linkedin.com\/in\/tom-sutherland-72b4509b\/"],"url":"https:\/\/legalvision.co.uk\/author\/thomassutherland\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/startups\/online-startup-legal-considerations\/#faq-question-1669141258503","name":"Why are legal considerations in place?","acceptedAnswer":{"@type":"Answer","text":"UK law places various legal requirements on online businesses, including companies that carry out business through e-commerce platforms (such as Amazon Marketplace). The priority of the law is to protect consumers from harm.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/startups\/online-startup-legal-considerations\/#faq-question-1669141278560","name":"Why do business owners obtain legal advice on these issues?","acceptedAnswer":{"@type":"Answer","text":"Because failing to comply with these legal requirements can be costly regarding your company's finances and reputation.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/178662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13349"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=178662"}],"version-history":[{"count":6,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/178662\/revisions"}],"predecessor-version":[{"id":196037,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/178662\/revisions\/196037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3248"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=178662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=178662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=178662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}