In addition to taxes and shipping fees, one huge issue with Going Digital is related to customer confidence. In the previous module, we addressed security as a technical issue. However, it can be considered as a global and legal issue as well. Can you imagine being sued for mismanagement of credit card numbers? You must ensure that the system that you choose for online payments (credit cards and e-checks) is PCI compliant.

Practical e-commerce offers a summary. Click the "Learn and Interact" icon to the right to take time to explore what it means to be PCI compliant.

Another factor affecting consumer confidence is the "what ifs". "What if" they aren't happy with the product, or "What if" they never receive it, or "What if" their credit card information gets lost in cyberspace and they become a victim of fraud. It may be necessary to offer an unconditional exchange or refund policy to boost consumer confidence. You should also offer a clearly posted statement about your policy of protecting customer privacy. Click here to read more about creating a good privacy policy.

Small businesses have unprecedented potential to compete in the open market. However, this also makes them liable for things that larger Internet competitors have staff to address. For example, sales taxes, credit card transaction requirements, global interpretation, privacy legislation, etc. Even so, a large number of business success and failure (whether online or on Main Street) can be attributed to their accounting practices, as well as understanding and communicating with customers.  This opens the door for a little friendly competition!

Going Digital opens many doors for streamlined operations and management of inventory. Just remember that ignorance is no excuse. Be aware of trade names and trademarks that your product may infringe upon – many companies have copyrights and will go to great extremes to protect them.

You can check TESS – The U.S. Patent and Trademark's Office database. It is easy and free! - http://www.uspto.gov/trademarks/index.jsp

Also keep in mind that Going Digital makes your Web site and business practices open for inspection in a much broader medium. There are cases where eTailers have been sued for defamation of character, copyright infringement and other violations.

Bottom Line: Do your homework on known legal issues. Carefully consider shipping and inventory issues. Work Smart to improve your profitability.