Each month, Australians spend more than $3.5 billion on online purchases — four years ago it was just one-third of that figure.
The health check
Whether you’re already an e-merchant or looking to become one, make sure you’ve set up some website basics right from the start.
Consider doing a bit of a ‘health check’ to feel confident that your site works for you and not the other way around.
These are some issues to consider:
- Do you have terms and conditions of sales listed on your website? These are the rules and guidelines of acceptable use to which customers must agree to use or access your website, buy your products, or use your services.
- How do you store customers’ personal information? The Federal Privacy Act covers organisations with an annual turnover of more than $3 million, and some other organisations. Even if the Act doesn’t apply to your business, you should still ensure all data is stored safely and securely and you set out your privacy policy on your website.
- If you use a third-party pay service (eg PayPal) that you use to conduct transactions, do you have a proper legal arrangement with them? Do you know your rights in the event of a dispute with a customer?
- If you have suppliers, either domestic or international, do you have proper supply agreements? Can you be compensated or reimbursed for delays or failures to supply?
- Always have a visible contact page so customers can easily contact you should an issue or question arise.
Although the online marketplace is still dwarfed by traditional in-person retail sales, if you have a web presence you should be monetising it — those extra sales can make all the difference to your bottom line when times are tough.
For more guidance on your business’ e-commerce activities contact CCIWA Commercial Lawyers on (08) 9365 7746 or via BusinessLawWA@cciwa.com.
