Business on the internet is one of the most important and fastest growing industries in the world. From 1% of all retail sales in 2001 to a dramatic 4% in 2010, it is growing at an exponential rate. Small businesses are finally able to compete with their larger competitors, because all websites can be designed in such a way that they look and feel amazing without the need for huge stores and physical lands. However, taking part in ecommerce isn’t all fun and games. It isn’t a simple way to make money and get rich quick. It is hard work, and if it isn’t done right, it comes with a whole lot of risk as well.
The Long Arm of the Law
There is always the risk that the law is going to intrude in the operation of the business. According to the laws in some countries, online businesses aren’t taxed for their sales. Haroon Qureshi says that you should probably be wary of this changing in the near future. As more people start to rely on online shopping, countries are trying to introduce methods to tax these people for the transactions that are carried out. Over $10 billion is lost a year by governments because sales tax isn’t applied to online businesses. Keep an eye out for taxes coming your way, and be prepared to deal with it when they do.
Another risk that you run is the security of your website. For all the good that there is on the internet, there is bad as well. Hackers can find their way into your company’s sensitive data stores and leak the personal details of your customers to the world. You need to maintain the security of your clients at all times if you want to maintain the integrity of your company. Always be aware of the risk when starting and running your online business.