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Does E-Commerce Have Any Limits?

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by: Tracey Aubey, Editor-in-Cheif

Implementing an e-commerce solution will help just about any business. However, it does have limitations you need to be aware of to ensure it will become a successful method enabling a new way for your customers to access your products. You need to be aware of laws related to selling goods online, user privacy, site security, tax issues, and technological costs.

  1. Legal LimitationsThere are a wide range of laws regulating data collection, data security, payment methods, and more. These laws will vary based on the country you are operating within and the countries in which your users are located. You may need to notify visitors of your website about what data you are collecting and how it is being stored. It is best to consult with a lawyer to ensure you are fully compliant with any laws that might affect your e-commerce site.
  2. User PrivacyGiving your customers the privacy they want is a key aspect of running a successful e-commerce site. With more and more data breaches from major corporations occurring each year, online privacy is quickly entering the spotlight of mainstream media. This means it is entering the forefront of everyone’s mind as they enter credit card information to purchase products online, email addresses to subscribe to mailing lists, and phone numbers for authentication.
  3. Site SecuritySite security is a key aspect of developing a long-term successful e-commerce platform. An unsecure site puts your users’ personal information and your own business information at risk. It can also result in your website going down and the chances of receiving fraudulent transactions on your site increases. You should always ensure your site is secure with security checks and competent developers.
  4. Tax LawsWith an e-commerce site, sales tax will be slightly more difficult to coordinate as states and countries all handle online transactions differently. You need to ensure you are keeping good records of all your online transactions. However, this can be seen as a benefit since some areas do not charge sales tax on online purchases which will save your customers money.
  5. Technological CostsDeveloping an e-commerce platform for your business can be an expensive and time consuming task. Whether or not it is worth the investment will depend on your individual needs. Be sure to consider the cost of developing, maintaining, and optimizing your website when determining whether or not an e-commerce site would be beneficial to your business.

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