E-Commerce Startup Checklist

There are many business issues and considerations unique to an online business when considering starting an e-commerce business. Below is a E-Commerce Start-up Checklist from the law firm of Griffith & Jacobson, LLC. This checklist contains many of the key issues a new e-commerce business should address before launching an online business.

For a more thorough review of the issues and considerations that you may need to address in launching your e-commerce business, please contact Arieh M. Flemenbaum at Griffith & Jacobson, LLC - 312-236-8110 or at amf@gjlaw.com

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1. Have a Business Plan:

• Define niche market
• Write brief mission statement
• Develop a business identity
• Have a reliable source for your product- manufacturers/suppliers
• Have a reliable source to deliver your product- direct delivery or drop-shippers

2. Form a business/corporate entity:

• Choice of Entity/ State Selection
• Obtain a federal tax employer identification number (EIN)
• Obtain state tax identification number
• Obtain a state/local sales tax license, as necessary
• Open a business checking account
  

3. Business Logistics:

• Establish business address
• Set up phone & fax service
• Establish PayPal/Google checkout accounts or a merchant account (direct credit card processing)?
• - review procedures, fees and dispute mechanisms
• - Information Security - determine what services are offered/needed to establish
• security for payments
• Contract with a preferred shipper - set up shipping provider accounts:
• - Establish fixed & discount shipping rates
• - Purchase shipping supplies
• Contract with suppliers/vendors

4. Web logistics:

• Choose a web hosting provider - address costs, liability for service interruptions
• & denial of service, services offered/security
• Designing your e-commerce site - Contracting a web designer and/or graphic designer
• Address web-marketing & Search Engine Optimization for your website and products - Ensuring that your clients find you on the web

5. Legal Issues:

• Terms & Conditions of Use for your website
• - Disclaimers
• - Limitation of Liability
• Warranties/liability for products:
• - charge backs, consumer disputes, procedures for returns
• - responsibility for shipping and handling costs
• Liability for 3rd party content (product descriptions, endorsements, comments)
• Safeguarding Privacy:
• - establish procedures for safeguarding certain non-personal information
• - determine marketing practices: Will you sell website user information?
• - certain industries and certain information require privacy notices
• Use of copyrighted materials/trademarks
  
  

For further information, please contact Arieh M. Flemenbaum at Griffith & Jacobson, LLC via email - amf@gjlaw.com or by phone at 312-236-8110.

For additional resources for entrepenuers and business start-ups at: http://www.gjlaw.com/CM/FSDP/PracticeCenter/Business/Starting-a-Business.asp