Starting an e-commerce business checklist

[royb121 10]

Hi guys,

 

If I were to start my own e-commerce business what are the steps everyone should complete within the first 6 months? For example:

 

What are the laws? Do I need to follow specific guidelines for returning orders?

 

Should I register my business? There are plenty of companies out there that allow you to register your business name for 99p. Do I need to do this? What is the point in this?

 

Do I need to copyright my business (not sure what the difference is between this and registering my business)?

 

Do I need a VAT number? I won't be making enough to start with to pay VAT, but it's nice to have a VAT number on the site. Also, will my current employer know if I'm running my own business?

 

Does anybody have any experience with using 3rd party customer services?

 

Thanks

[Karis 11]

PCI compliance. If you're using a e-commerce payment gateway (VISA, etc) then you need to ensure your website is compliant or face hefty charges on a monthly basis.

 

It's one of the things they 'fail' to tell you about, but it's crucial you get it resolved.

[Elphi 24 10]

Hi

You do need to comply with the distance selling regulations. Make sure your returns policy is clear with reference to postage costs etc. If you're using Ebay as a channel they have their own policies so this may differ from the actual requirements.

 

You don't have to register as a limited company and could work as a sole trader (there are pros and cons for both) but obviously there are the tax issues (corporation tax/self employed) etc. Re VAT there's an annual threshold, at the moment it's £79k but you can register voluntarily but you'd need to work out if this is beneficial to you.

 

You don't have to copyright your business but I'd recommend it if you're planning to grow the business.

 

Your employer could find out, if they are very diligent but unlikely unless you're working in the same circles. Do you have a clause in your contract requiring you to inform your employer?

[indizine 10]

You only need to comply with PCI DSS if you are taking card payments directly on your website and not through a third party payment gateway. Start with Paypal and then move on to something like Sagepay, Worldpay, etc, and only pay for things you really need.

 

You can't "copyright" your business.... but you can trademark your business name and or logo, depending what the name is....some words are not allowed to be trademarked.

 

See an accountant re VAT and trading status as this will be based on what is best for you and your business.

 

You can register a domain name but beware of the 99p ones....they will catch up with you one way or another in most cases. Just pay the going rate of about £8-£10 for 2 years for a .co.uk, try http://www.123-reg.co.uk

 

Check your employment contract regarding running a business...you will find in almost every case that as long as you are not competing with your employer and it's not affecting your work it will be fine.

 

If you are doing ecommerce consider how you will reply to emails during the day....not in employers time and on their PC....you may get caught out and sacked for that depending if you are taking the mickey. Replying to emails in your lunch break would be fine. But really, it's hard to run a proper business when you work full time. people expect to be able to get replies, even contact you, during the working day at least.

 

Distance selling regulations apply to selling online so check those out.

 

Postage is often a snag for many online sellers....think this through first.

 

There is loads of info on the internet and any good web design company who does your website should be able to fully inform you and if not, don't even go there. It can be a nasty, expensive lesson with some of the idiots around who are selling websites these days. Big tip...pay cheap pay twice, if you're gonna do it, do it right, and so on and so on. Try to short cut and you will waste loads of time and money.

[AKGT 10]

If you need Web Hosting, get in contact ee have some great deals on.

[ISinvest 10]

My wife started one this year and its going great.

 

Just do it. If you worry about everything or you will probably never start.

 

see

 

http://www.bellesbagsnbows.com/

 

Have a look at this. Business started this year from kitchen table by sheffield mum of three. She already has celeb clients as well as loads of local ones. She would descibe herself as a normal mum and wife.

 

I think shes amazing! And for the sake of transparency and because Im proud Im glad shes my wife!

__________________

[Karis 11]

You only need to comply with PCI DSS if you are taking card payments directly on your website and not through a third party payment gateway. Start with Paypal and then move on to something like Sagepay, Worldpay, etc, and only pay for things you really need.

 

 

Sorry but this information is incorrect. You need to comply with PCI if your website handles data even through a third party gateway. PCI compliance also includes the transmission of data as well as card processing.

 

Basically, even if you use a third party gateway and never see the customer's data, you will still need to be PCI compliant.

[phpman 10]

Hi

 

I think people have overlooked that you need to register with the Information Commissioner (ico.org.uk) if you are planning to store user's details.

 

You'll also need a secure website which uses SSL, in laymans terms it has a URL beginning with https:// rather than http. You can do this cheaply though, for £15 a year, just google it. The https will be required when users register, login to their personal area and complete purchases.

 

My business wasn't VAT registered for a long time, I think when I started the turnover threshold was £67,000 for any twelve month rolling period.

 

Once I hit that I registered for the flat rate VAT scheme which meant I paid a flat 6% VAT on my turnover but couldn't claim back input VAT (i.e. claim it back on items I purchased).

 

Hope this helps

[indizine 10]

Sorry but this information is incorrect. You need to comply with PCI if your website handles data even through a third party gateway. PCI compliance also includes the transmission of data as well as card processing.

 

Basically, even if you use a third party gateway and never see the customer's data, you will still need to be PCI compliant.

 

Nope sorry, you don't. Loads of people use Paypal standard so PCI DSS compliance doesn't even come into it. PCI DSS is when taking card payments on your own website without going to a third party payment gateway page to complete the transaction.