A guide to third sector trading - WCVA

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It’s an idea, but is it business? A guide to third sector trading 1: Getting started 2: First steps 3: Business planning 4: Legal and governance 5: Funding and resourcing 6: Financial controls 7: Managing growth 8: Management and governance 9: Social enterprise 10: Sources of support Customer confidence: The online shop is the public face of the business. Before you can persuade customers to buy your goods in significant quantities you need to win their confidence. There may be more to this than you think. The issues include: • secure payments • delivery • site contents • advertising and promotions • technical matters such as web-hosting and your domain name. Secure payments: You will need to establish a payments system which you know is resistant to hackers, and which your customers can have confidence in. Systems such as Paypal provide reassurance, but they will add to the cost of your sales. It is advisable to include information on the site which describes the security measures which are in place. Delivery: You need internal order processing and delivery arrangements, using Royal Mail or commercial carriers, which will ensure that goods will be delivered to customers within a reasonable time. This must be robust enough to handle periods of high demands, as in the pre-Christmas period. Site contents: You will need to have arrangements to regularly check the site to ensure that it is up-to-date and accurate. This is particularly important if your process or delivery charges and other costs change. You will have to adhere to the Electronic Commerce Regulations 2002, and the Consumer Protection (Distance Selling) Regulations 2000 – see below. You may want to reassure customers that you are sticking to the rules too. Advertising and promotions: There are a variety of way to promote your online shop and you will probably need to use several of them, and test which works best. These will include: • links on other business websites • inclusion on a variety of search engines – these are commonly supported by website providers, but your own choice of key words or tags to promote the business could be critical to the response you get, so you should do market research before you start • traditional advertising in community newsletters, newspapers and specialist magazines related to your products • collaboration with other like-minded community or charity traders, like the 3to3 third sector online marketplace. 192
It’s an idea, but is it business? A guide to third sector trading 1: Getting started 2: First steps 3: Business planning 4: Legal and governance 5: Funding and resourcing 6: Financial controls 7: Managing growth 8: Management and governance 9: Social enterprise 10: Sources of support Regulation The electronic Commerce Regulations 2002: • Scope: These regulations apply to: − advertising goods and services online (using the internet, mobile phones and interactive TV) − selling goods and services to business and individuals online − transmitting and storing electronic information. • Information requirements: The regulations lay down detailed requirements about the information which must be provided to end users of online marketing and sales services. You should check these carefully before starting. They include obligations to provide (among other items of information): − full contact details of the business − the VAT number − clear price information, inclusive of tax and delivery costs − full information in email advertising about the sender and the promotion − specified and detailed information about the electronic contract which is on offer to private customers (this is optional for business customers, and not applicable at all to one-to-one contracts agreed by email). • Penalties: The Office of Fair Trading can issue “stop now” orders, and the courts can order businesses to publish information (failure to comply is contempt of court). Consumer Protection (Distance Selling) Regulations 2000: In addition to the provisions above, these regulations give individuals rights to cancel contracts. Other regulations: Third sector traders are also subject to rules on: • data protection and privacy • advertising standards • the code of practice on premium rate phone services. Information Information and advice: This section can only scratch the surface of this important topic. For information more visit Business Link at www.businesslink.gov.uk, and the Wales Assembly Government business site http://fs4b.wales.gov.uk/ bdotg/action/ and select “IT and eCommerce”. 193
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