{"id":183310,"date":"2023-10-06T02:00:30","date_gmt":"2023-10-06T01:00:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=183310"},"modified":"2024-05-29T06:20:05","modified_gmt":"2024-05-29T05:20:05","slug":"starting-ecommerce-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/starting-ecommerce-business\/","title":{"rendered":"4 Legal Considerations Before Starting an eCommerce Business"},"content":{"rendered":"\n<p>Beginning an eCommerce business can be an exciting venture that connects you to untapped markets. At the same time, many <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/electronic-commerce-regulations\/\">areas of law<\/a> affect the eCommerce industry, ranging from the goods and services eCommerce businesses provide to how they store personal data. Therefore, before starting an eCommerce business, it is worth knowing what laws will affect your business operation. This article explains four legal points you need to know to run an eCommerce business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Consumers Rights<\/h2>\n\n\n\n<p>Depending on whether your customer is a consumer or a business, different laws will apply, namely. For example, the <em>Consumer Rights Act<\/em>&nbsp;details your:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/legalvision.co.uk\/regulatory-compliance\/defective-goods-consumer-rights-act\/\">consumers&#8217; rights<\/a>; and&nbsp;<\/li>\n\n\n\n<li>obligations if a dispute arises concerning those rights.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>On the other hand, the <em>Sale of Goods Act<\/em> automatically applies to your business where your customers are businesses unless you change these rules through the details in your business terms and conditions.&nbsp;<\/p>\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\/07\/29111635\/start-online-business-uk-560x792-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">How to Start an Online Business in the UK<\/div>\n            <div class=\"body-text\">\n                <p>Starting an online business in the UK is complex. This free guide helps you navigate the legal steps with confidence.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/uk-online-business-guide.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\">2. Information<\/h2>\n\n\n\n<p>Most eCommerce businesses must display specific information on their websites. Namely, the law requires you to display your:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>business name;<\/li>\n\n\n\n<li>physical location address;&nbsp;<\/li>\n\n\n\n<li>professional body details (if you are part of one); and<\/li>\n\n\n\n<li>your email address for your business.<\/li>\n<\/ul>\n\n\n\n<p>The actual information your eCommerce business displays must comply with particular requirements. For example, information for your customers making a sale must be clear in terms of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>prices;<\/li>\n\n\n\n<li>whether delivery and VAT apply;<\/li>\n\n\n\n<li>terms and conditions, which must be easy to access;<\/li>\n\n\n\n<li>who will carry out the contract with the customer, such as your company; and<\/li>\n\n\n\n<li>languages you offer.&nbsp;&nbsp;<\/li>\n<\/ul>\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 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Cookies and Direct Marketing<\/h2>\n\n\n\n<p>The Privacy and Electronic Communications Regulations 2003 (\u2018PECR\u2019) affords privacy rights to individuals when your business communicates with them electronically.&nbsp;<\/p>\n\n\n\n<p>If you plan to use cookies to analyse customer behaviour, you must specify this in your <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/website-privacy-policy\/\">privacy policy<\/a>. The policy should explain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your reasons for the cookies;<\/li>\n\n\n\n<li>what types of cookies you use, and<\/li>\n\n\n\n<li>if third parties use the cookie data and information about those third parties.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Otherwise, you could breach your privacy law obligations.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Dropshipping&nbsp;&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Some UK eCommerce businesses engage in <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/dropshipping-legal-considerations\/\">dropshipping<\/a>. This is where the online store sells products to consumers but never physically has the items they sell. In other words, the business does not hold or handle the items at any point in the transaction. Instead, they buy the item from a third party and then send it to the online business customer.&nbsp;<\/p>\n\n\n\n<p>A legal point you need to know about for an eCommerce business is that despite the nature of dropshipping, a company that engages in it still needs to comply with all eCommerce laws in the UK like any other eCommerce business. This includes paying taxes.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>If you are planning on running a UK eCommerce business, there are many legal points to consider. Namely, you must consider:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>that your customers have rights regardless of whether they are consumers or businesses;&nbsp;<\/li>\n\n\n\n<li>your business\u2019 legal obligations to be transparent about certain information;<\/li>\n\n\n\n<li>your business\u2019 privacy policy obligations if it uses cookies to track consumer behaviour; and&nbsp;<\/li>\n\n\n\n<li>the laws regarding dropshipping.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you need help setting up your eCommerce business, LegalVision\u2019s experienced <a href=\"https:\/\/legalvision.co.uk\/ecommerce-lawyers-lp\/\">eCommerce lawyers<\/a> 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 for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\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=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/183310\" \/>            <input value=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/starting-ecommerce-business\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"4 Legal Considerations Before Starting an eCommerce Business\" 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>Beginning an eCommerce business can be an exciting venture that connects you to untapped markets. At the same time, many areas of law affect the eCommerce industry, ranging from the goods and services eCommerce businesses provide to how they store personal data. Therefore, before starting an eCommerce business, it is worth knowing what laws will<a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/starting-ecommerce-business\/\">Continue reading <span class=\"sr-only\">&#8220;4 Legal Considerations Before Starting an eCommerce Business&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3206,"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":"1134,1179,182711,182523,183151,178185","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[34],"tags":[639,1063,1516,1517],"class_list":["post-183310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-online-business","tag-dropshipping","tag-consumer-rights","tag-cookies","tag-direct-marketing"],"acf":[],"yoast_head":"<!-- This site is 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