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Legal Considerations in eCommerce Business Legal Considerations in eCommerce Business

Bronze medal Reporter adv.John Posted 15 Mar 2019 Post Comment Visitors: 179 Read More News and Blogs
Legal Considerations in eCommerce Business

As a sector, eCommerce is still a relatively new phenomenon, so many businesses don’t properly understand the law. The rise of global e-commerce variation changes faces of business around the world.  eCommerce Law is Often Based on Commerce Law…

A helpful shorthand for understanding eCommerce law is that the same laws that apply offline usually apply online. False advertising, fraud, copyright infringement and more or less everything are as illegal online as they are offline.

This growth is explained in part by the widespread use and ease of use of digital money in Africa, South America, and the developing world, and by the rising number of internet users. One estimate in 2013 was that 40% of internet users had bought goods or services online, over a billion users. The number of people worldwide who are using the internet has approximately doubled in that time.

In America, businessmen think about e-commerce globally, or new businesses developing a B2B or B2C e-commerce business, there are numerous critical legal considerations. These comprise currency conversion, transportation and shipping, and a significant trade and regulatory matters between regions and nations.

Most of the big players in mobile money, such as Paypal, make available currency conversion services for business accounts. But the cost is important and should be considered early in the stage of business planning. Functioning through an e-commerce website or platform, such as Etsy, provides currency conversion services as part of their business support. There is a similar cost for these transactions, still. Many of the websites that allow cross-country shopping, such as Shopify, also offer currency conversion services.


Around half of all manufacturing shipping globally is the outcome of e-commerce. With the environment of online business, shipping is an important part of business planning. The types and numbers of shipping sources carry on to grow, related to safety, liability, dependability, and the environmental costs of global shipping are also growing.


The most challenging issue with a new e-commerce venture is directing the regulatory environment and trade agreements between nations and regions. There are particular limitations with both finished products and supply chain products transporting around regions, and very specific necessities for doing e-commerce with clients in the EU. Customs, import duties, VAT, and taxes will be challenging enough for a global business that speciality advice is critical. Technology moving between countries is also controlled and restricted for some types of tech. Political instability and the threat of varying trade agreements will also influence the new business.


For many businesses, these regions of concern are new, and outside of the usual comfort area. On the other hand, the US market share of the huge global e-commerce market is dropping. Now, technology is being advanced that may benefit us meet the challenges of global currency conversion, shipping and transportation, and the changing regulatory environment. Expert legal advice will help a new business develop fail-safe plans for a new global venture.

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