FSB Describe Barriers To Selling Online

A recent Federation of Small Businesses article reports two main hurdles to companies wanting to sell online – postage charges for businesses based in rural areas, and the Distance Selling Regulations.

Postage Costs

For rural businesses, getting a good rate on postage can be more difficult than for businesses in town and cities. On top of the recent increases in Royal Mail postage, this could be a critical barrier to competing online. As the FSB article points out, consumers expect cheap or free postage and want their items to arrive quickly.

Possible solutions to this problem are to sign up for  a Royal Mail account and take advantage of their discounts, or use franking.

Distance Selling Regulations

Another barrier to selling online mentioned in the FSB article are the Distance Selling Regulations (DSR). Many sellers and consumers find these rules difficult to understand and it can put people off selling their goods via an ecommerce website.

Luckily the Office of Fair Trading have published information on what the Distance Selling Regulations mean for your business. As well as reading up on their website, it makes sense to be really clear with consumers about your returns and refund policy so that all parties understand what the situation is. The rules are designed to make sure that orders are dealt with fairly, not to cripple your online business.

The full article appeared in the Federation of Small Business magazine First Voice, April/May 2012, p20-22.