Understanding the Rules and Regulations of E-Commerce

Understanding the rules and regulations for services

How to understand e-commerce regulations

What you'll learn:

• which digital channels are covered by e-commerce regulations,
• which consumer rights are protected under GDPR,
• what the consequences of non-compliance are for your business.

The different types of e-commerce regulation

E-commerce regulation basically falls into two areas: distance selling and data protection. If you sell products through your own website, social media channels, or through online marketplaces such as Amazon and eBay, there are steps you need to take to stay compliant.

Distance selling:

When selling products online, you must give your customers certain information both before and after each sale. Every market, even within the EU, has different distance-selling rules. As a seller, you should research and understand the distance-selling rules in every market you want to sell into.

Data protection:

If you've been trading in the United Kingdom for a while, you've probably heard of the General Data Protection Regulation (GDPR). GDPR sets out how you should collect, store and process customer data. It's unavoidable in e-commerce. The law requires you to display your data protection policy clearly on your website.

EU marketplace regulations:

EU marketplace regulations require marketplaces to charge and collect VAT from you at the point of sale. For example, if you sell something on Amazon.fr, that marketplace will collect VAT on your behalf.

Regulations in other countries:

You should also be aware of any specific regulations in the countries you export to. Most countries have thresholds for the amount that can be imported before a UK seller becomes liable for tax on sales in that country.

E-commerce is growing at an incredible pace, and it's easy to get caught up in fast-moving technology and marketing strategies aimed at generating sales. But it's important not to lose sight of the tax and customs rules when setting up your business.