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
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