In the second of a two-part series, Chris Barling, CEO of ecommerce software supplier Actinic, shares his top tips for successful online selling.
Shipping is not as difficult as you might think, because there are many specialist firms to help. Many ecommerce merchants ship abroad without any problems. The big boys are UPS, Fedex, DHL and ParcelForce, but there are many others. Ask for advice from local businesses that also ship goods.
Like most aspects of business, ecommerce has its share of red tape and regulations. Any slip-ups are there for the world to see, so it's doubly important to be legal and decent. The following five tips try to cover some of the areas that you need to consider and understand. They are not definitive – but they are a good place to start.
Under the EU Distance Selling Directive, you must make clear who you are by providing full contact details, including an address and phone number. This is also good practice for building trust. Under the same Directive, you must accept goods for return for any reason within seven working days. Why not make this a selling point?
If you are VAT-registered, you should charge VAT at your usual rate when selling within the EU. But if you exceed the individual VAT threshold for Germany, France, etc, you should charge VAT at the appropriate national rate when selling to that country. Non-UK business customers in the EU who are VAT-registered in their own country should be allowed to quote their VAT registration number and be exempted from tax. You don’t have to charge VAT when selling outside the EU.
You are required to take ‘reasonable’ steps to provide access to people with disabilities – and this includes your online store. In particular, all images should have alternate text (‘Alt’) tags so visually impaired people can navigate your site.
You will need to register with the Data Protection Registry. Registering takes a few hours of work and thought, but it is essential.
You may only send direct email marketing to individuals who have explicitly agreed to receive it. If you obtained their details in the course of a sale or sales enquiry, however, you may communicate with them by email unless they opt out. You must include an ‘unsubscribe’ option or email link in every email. Make sure you implement opt-out requests.
Assuming that you are legal and decent, let the world know. Anything that adds to your credibility will help online. Why not list everything you have done to comply with legal and tax requirements?
Fraud is a potential problem when selling online. But don’t get things out of proportion. No one has managed to eliminate shoplifting yet, either. Unfortunately, some countries generate more fraudulent orders than others. If in doubt, stick to orders from Western Europe and North America.
To help avoid fraudulent orders look out for these indicators. They tend to:
Good payment processors, provide a great range of fraud indicators. You should contact buyers suspected of fraud, because rejecting genuine orders is obviously a bad idea. Most fraudsters give up at the first hurdle and you don't hear from them again.
You may be wondering whether ecommerce is really worth it. Thousands of online businesses are convinced that it is. Ecommerce is a growth industry and online sales are rising rapidly, while conventional retail is, at best, static. What’s stopping you getting your share?
Did you miss part one of this feature?
Comments
Only to add on point 11. - Its worth setting up an account with them as the published rates are not so good. Also, glad you clarified the point in 17. and being able to email people that may not have made a purchase as such, but enquired about it, as I was not sure.
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