Wholesale Dropshippers & Dropshipping Product Suppliers Blog

Monday, November 24, 2008

Laws that you need to know when dropshipping

Just like any other business, online business, e-commerce or dropshipping are also supposed to abide by some laws and regulations. No matter what is the nature of online business, buyers and seller are hardly face to face, except of the information they exchange with each other, they are total strangers. Many fraudulent minds try to exploit this limitation. The purpose of e-commerce laws and regulation is to make online transactions as safe as possible. For buyers they provide protection against numerous types of frauds, for sellers it allows them to improve their credibility. These rules and regulations are mainly applicable to payment, advertising and privacy issues.

Advertising:
Internet advertising is just about a decade old but its growth has been second to none. Businesses are attracted by the fact that they can access a lot of customers while spending minimum. There are so many advertising options to choose from (websites, corporate blogs, e-mail marketing, banner advertisements, affiliate marketing), but unlike other advertising mediums where customers watch some advertisement, go to the market and try the product themselves before purchasing it, they have to rely totally on advertised material while making a decision in e-commerce. This is why advertisement should be factual, and not consisting of false claims. Prices (with clear mentioning of "including" or "excluding" tax) should be stated clearly. Customers should not be misled in any way.

Payment & Shipment:
Customer should take utmost care when placing orders after reading the terms & conditions. A confirmation for both the order and payment should reach the customers as soon as possible. Ideally, a printable receipt of the payment should be provided to the customers. Shipment must reach the customers in due time. Supplier is responsible for any damages which occur to the product in shipment unless the contrary is clearly mentioned in terms & condition.

Spam & Privacy:
Spam is the bundle of uninvited e-mails or messages, from some unknown businesses or persons; we receive in our inbox regularly. Internet spam is as old as internet itself. E-mail marketing is not illegal, but you need to clearly mention your contact details and an option for the recipient to stop you from sending anymore promotional messages. Another problem which internet users face is the violation of their privacy. User name and passwords, storing cookies on customer computers and data sharing with third parties are the areas where an extra cautious approach is needed.

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