Selling goods online is very popular these days, whether you are an individual wanting to unload a few possessions or a business offering a broad range of products. But as common as online selling may be, it still carries some risks.
“If you are an individual selling online, you need to protect your personal information,” says Chartered Accountant Tom Hearne of Score Media Inc. in Toronto. “It’s a good idea to provide a cell phone number instead of your home phone number and to meet the buyer in a neutral location instead of at your home.”
When it comes to receiving payment online, it’s best to use a reliable, well-established system such as PayPal. “If you are delivering the item to the buyer, accept payment in cash, not a cheque,” advise Hearne. “Don’t try to process a credit card payment on your own.”
Selling online offers businesses an opportunity to expand their customer base, provided they deliver a positive customer experience. “A business must pay attention to its online selling and the impact it is having on its brand,” says Hearne. “You have to do a good job on customer service. When selling online, it doesn’t take much to turn off a customer.”
Businesses that don’t keep their website information up to date risk alienating customers. “Your online pricing should be consistent with your store pricing,” adds Hearne. “If an item is out of stock, the customer must easily be able to find out when it will become available. As well, information about shipping times and costs should be clear.”
Businesses selling online need to be careful when it comes to cross-border shipping and licensing. “For example, if you are an exclusive reseller of a product in Ontario, don’t try to use your website to sell and ship it to the rest of Canada or the U.S.,” explains Hearne.
One of the biggest issues facing businesses that sell online is the need to protect their customers’ privacy. “Selling online means taking on a very big responsibility to protect your customers’ credit card and other personal information,” says Hearne. “You have to establish privacy policies and have adequate security in place. You are receiving very sensitive information from your customers, and you really don’t want to be the one responsible for exposing it.”
Brought to you by the Institute of Chartered Accountants of Ontario
