There are two ways to sell things, generally speaking. You can do so in person and you can do so online.
Each way of doing it has its appeal, but also its drawbacks. If you’re selling items online, you need to think about things like whether the FFL gateway you’ve set up is working correctly, or at least that’s the case if you’re selling firearms through the mail. Even if you’re selling something much more innocuous, there are plenty of rules and regulations you need to be aware of.
If you’re selling something via a brick-and-mortar store location, on the other hand, that often involves hiring more employees than you’d need if you were selling exclusively online. You’d also probably have to locate a store location that sees plenty of foot traffic.
In this article, though, we’ll focus on selling items and services exclusively online. This simplifies matters somewhat, but there are still plenty of potential headaches that can go along with this business model.
One of them is the issue of compliance. We’ll talk about it in detail right now, as well as when you need to worry about it most as an online seller.
What Does “Compliance” Mean in This Context?
First, let’s explain what we mean when we talk about online compliance. In this context, what we’re talking about is selling things in a way that complies with three main sets of rules. Those are the rules that are put forth by the selling platform you’re using, any applicable state governing bodies, and the federal government.
Let’s say you’re selling physical products through a website like eBay or Etsy. These two have been around for many years, so they’re well known and established. They each have dedicated customers that spend time every week browsing there.
You need to comply with any rules the platform has in place. Usually, you can learn about those rules easily enough when you first sign up and start selling there. If you violate any of those rules, the platform will let you know about it.
You also need to be mindful of any rules about selling products online that have been established and implemented by your state. Keep in mind that rules applying to online sales in one state may be completely different in another.
Finally, you need to be aware of any nationwide regulations or laws about selling things online. Remember that even if you’re selling something legally according to a state’s laws, you also need to adhere to national ones. If you ignore national laws governing online sales, you can be certain you’re going to hear about it from the government sooner rather than later.
Consider Compliance Starting the Moment You Open Your Digital Storefront
As for when you should worry about online compliance, the time is the moment you start selling anything online, if not before. Compliance with the platform on which you’re selling your products, the state in which you’re selling, and the nation in which you live should always be in the front of your mind if you get into the online sales game.
This doesn’t mean that you need to lose any sleep over being in compliance with all applicable rules and laws if you’re getting ready to start selling things online. Instead, you simply need to be aware that you can’t just send anything through the mail without first checking to see whether it’s okay for you to do so.
Often, you can find books that act as guides to selling items online. If you’re using a platform like one of the ones we mentioned above, there are plenty of excellent guides that have been written by veteran sellers that you might want to peruse before you get into this business model.
You Need to Worry About It More if You’re Attracting Negative Attention
While you should always be aware of compliance and what you need to do to avoid getting yourself in trouble, if you’re attracting negative attention through your online sales for some reason, that is when you’ll need to be even more mindful of potential consequences. Maybe you didn’t mean to violate any of the rules or laws as mandated by the platform you’re using, your state, or the federal government. However, as is often said, ignorance of the law is no excuse.
If you’re doing something wrong, regardless of the entity with which you’ve gotten yourself in trouble, they will probably let you know about it. That could come in the form of a cease and desist letter from the state or the federal government. If you’re doing something that’s frowned upon by the platform you’re using, they might suspend your account.
At this point, you will need to figure out what you did wrong. Only after you’ve corrected the problem can you continue selling things online. That might involve paying a fine or subtly changing the business model you’ve been using.
Those Who Sell Unusual Products Usually Get More Scrutiny
There’s one more factor worth thinking about in all of this. If you sell something pretty normal, like watches or shoes, you’re not as likely to get any negative attention from the entities we’ve mentioned. If you sell something online that is thought of as a little more exotic or unusual, though, you’re automatically going to be under more potential scrutiny.
If you’re selling vape products, kratom, guns, knives, or anything along those lines, what you’re doing might not necessarily be illegal, but more governing bodies are likely to pay more attention to it. That doesn’t necessarily mean you shouldn’t sell those things. You should just be aware that since they’re products for adults, there will be more rules surrounding who you can sell them to and how you can sell them.
If you keep all this in mind, you should do fine. Just know that if you want to continue selling your items online in peace and making a profit, you must be compliant with the applicable regulatory bodies.