If you're operating a business online, then you know it's no easy feat to stay on top of e-commerce trends. What's more, you may be inundated with daily business details such as social marketing, advertising, consumer feedback, inventory, website hosting - the "to-do" list goes on ad infinitum.
While keeping your online business afloat is crucial to making money and staying relevant in the marketplace, there is one thing that matters even more, and that is compliance. No matter how great your sales might be, or how impressive your e-commerce website design is - if your online business is not in compliance, all your hard work can come crashing down in the course of mere days. Read on about how to take your business up a notch by being compliant with regulations and laws required of every e-commerce website online.
Unique Challenges Facing E-Commerce Business and Compliance
As 2020 was dubbed "the year of shut-ins," and concerns about the pandemic continue to grow, more brick-and-mortar businesses are forced to switch to selling online. In fact, as of 2021, e-commerce has grown almost 20% according to US e-commerce forecasts, and that number is expected to dramatically increase in the future. With the burgeoning demand for online purchasing, compliance issues have come into the forefront. Now more than ever, online businesses are faced with rules, regulations and laws that are unique to e-commerce.
What Happens If Your Online Business Is Not Compliant With Current Regulations?
If you're selling online, you've got to play by the rules, and that means being compliant. And proclaiming "I didn't know I should be compliant with that!" simply won't cut the mustard. Various governmental and regulatory agencies put rules in place to protect consumers. If an e-commerce business fails to comply with these rules and laws, it could be in store for a slew of unsavory consequences. For instance, a business could be heavily fined for non-compliance. Or worse, an online business could be shut down completely.
Common Regulations Your E-Commerce Business Should Be In Compliance With Now
Avoid paying fines through the nose or losing your online business altogether. Read further to learn about the most common regulations your online business should be compliant with today.
GDPR: This is known as the General Data Protection Regulation, which is meant to protect internet users' privacy when surfing or shopping online. This regulation was drafted and passed by the European Union (EU) and requires organizations to notify website visitors if data is collected from people in the EU. If you live and conduct online business in the US, don't think you're exempt from this regulation. Why? Because if you have customers in the EU, and collect their data for any reason, you need to be GDPR compliant. If your online business is not compliant with GDPR laws, you could face extreme fines of up to tens of millions.
PCI Compliance: PCI stands for Payment Card Industry which has a Security Standards Council. This Council sets forth standards that mandate credit card security is protected. Ecommerce businesses must be in compliance with PCI standards to ensure credit card information and payments accepted from branded credit cards (such as Visa or MasterCard) are handled accordingly and uphold the strictest privacy measures. If you're not familiar with these regulations or privacy standards, get more information and PCI compliance help here.
COPPA: Every website (e-commerce or otherwise) is subject to the Children's Online Privacy Protection Act, without exception. This act, as you may rightly assume, is about protecting children's privacy when visiting websites online. The Act contains many different regulations, but the one your online business is likely most subjected to is about not collecting personal information from a child under the age of 13. If you're selling a service or product targeted to a young audience, you need to be particularly mindful of the COPPA regulations. Failure to comply could result in fines up to $40,000 or more.
Shipping Compliances: If you're selling a product online, the world of e-commerce shipping can be overwhelming in terms of making sure you're compliant with shipping regulations. For instance, many shipping companies restrict certain items from being shipped. Examples of some restricted items not permissible to ship may include dry ice, aerosols, perishables, perfumes, or weapons. Different restrictions vary according to shipping companies, so check with your shipper to confirm what you may or may not legally send through their services. Furthermore, restrictions and regulations change when shipping internationally. Check out the Federal Trade Commission's e-commerce international selling guide to make sure you are in compliance with customs laws, duties, and other regulations on international shipping.
Other Noteworthy Compliances for E-Commerce Businesses
These are the most common compliances to consider while selling online. However, you should also check with your local, state, and federal government when conducting business on the internet. If you have a small business center in your area, check there first for advice about e-commerce compliance. Better yet, consider hiring business compliance professionals to make sure your business is operating by the letter of the law. Taking these steps will save you and your business a lot of complications and setbacks in the future.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
!['Cosmic Glitch' in Einstein's Theory of General Relativity Could Be Explained in This New Scientific Tweak [Study]](https://1721181113.rsc.cdn77.org/data/thumbs/full/53435/258/146/50/40/cosmic-glitch-in-einsteins-theory-of-general-relativity-could-be-explained-in-this-new-scientific-tweak-study.jpeg)
