E-ssentials
Customer Service
Online business poses unique challenges and opportunities for
customer service. Online exporters must have an effective customer
service program to build and maintain a customer base, and should
consider hours of operation, local hires, language differences,
etc. Customer service should be integral to website design and
overall business strategy.
Resolving Complaints
Disputes between buyers and sellers are inevitable, whether the
transaction occurred on or offline. How customer complaints are
resolved is important to building trust and confidence with an
online exporter's clientele. For most companies involved in online
cross-border e-commerce, the most practical way of dealing with
disputes is alternative dispute resolution (ADR, also known as
ODR or online dispute resolution). ADR mechanisms can be more
flexible, creative, timely, and cost efficient than courts in
finding solutions that satisfy both parties. There are a number
of commercial websites and private service providers that maintain
information on international ADR. U.S.
Commercial Service officers in your target market can help
you identify a country's ADR use. See also, research on the Top Internet Markets FAQ at left. Companies may also choose
to participate in a trustmark program (also known as a consumer
confidence seal program) that includes ADR services. For example,
the Global Trustmark
Alliance 
(GTA ) is a new membership organization created to
encourage cross border e-commerce by fostering consumer trust,
encouraging good online business practices, and discouraging the
development of burdensome and disparate governmental regulation.
Be Responsible
In the online world, success and reliability are equal partners.
Before using the Internet to export, companies should review their
online practices and ensure that they are seamless with their
offline business practices, that they are worthy of their customers'
confidence, and that they conform to the relevant laws of the
target market. Companies should pay particular attention to taxation,
privacy, security, unsolicited commercial emails (UCE), advertising
content and jurisdiction. Of course, companies should always deal
in good faith.
Taxation
An online merchant selling to foreign customers should pay careful
attention to the tax implications of those sales. In general,
once a company crosses a certain threshold of activity in a foreign
country, the company becomes subject to income tax in that foreign
country.
Privacy
U.S. organizations that collect personally identifiable information
online should display their privacy policies prominently, and
offer data subjects (i.e. customers, employees, other business
contacts) choices about how their personal information is used.
Customers, for example, should have the opportunity to refuse
having their personal information shared with others or used for
promotional purposes.
Many countries have privacy laws, and organizations should take
care to comply or face prosecution. For example, the European
Union prohibits the transfer of personal data to non-European
Union nations that do not meet the European "adequacy"
standard for privacy protection. The U.S. Department of Commerce,
in consultation with the European Commission and the private sector,
developed a "safe
harbor" framework that provides U.S. organizations with
a streamlined means to comply with the European Union requirements.
Companies may self-certify to the safe harbor through the safe
harbor website.
Security
Compared to other forms of consumer purchasing, the Internet
is safe, as long as the online merchant takes prudent business
precautions.
Electronic Signatures
In legal terms, an online sale is an enforceable contract, a
valid and binding agreement. However, in some overseas markets,
a contract is only enforceable if it is signed "in writing."
Such jurisdictions do not recognize electronic signatures and,
in the event of a dispute, would not enforce an agreement made
via email or through a website. While many countries have modified
their laws to recognize electronic signatures, online exporters
should check to be sure their target market accepts electronic
signatures and, if so, if those countries impose restrictions
on which signatures/technology are legally valid. More information
on electronic signatures can be found at the Department of Commerce
Office of Information
Technology and Electronic website, or via the U.S.
Commercial Service Officer in your target market.
Unsolicited Commercial E-mail (UCE)
UCE, also known as and Unsolicited Bulk E-mail (UBE) or spam,
is controversial and many domestic and international jurisdictions
have laws about UCE. Violations may result in penalties. In addition,
many email service providers, such as AOL and Yahoo!, have rules
of conduct that forbid use of their service for sending UCE. More
guidance on UCE can be found at the Direct Marketing Association
website, http://www.the-dma.org/ . Additional information for marketers
can be found at the website of the advocacy group SpamCon Foundation
at http://www.spamcon.com .
Advertising Content
Most countries have laws about advertising content, which may
be applied to websites, banner ads, and marketing e-mails sent
from the U.S. The U.S. Federal Trade Commission has information
for online advertisers available on its website. See
Although the Commission's publications focus on domestic law,
they contain important information about "best practices"
in the online environment. The International Chamber of Commerce
also has guidelines
on advertising and marketing on the Internet .
Jurisdiction
Online exporters must be aware that they are doing business in
a foreign jurisdiction, which means the laws and regulations of
the target market apply to the goods and services being sold.
Good Faith
Dealing in good faith is perhaps more important for online businesses
than bricks-and-mortar, because customers rely heavily on reputation.
Moreover, it is illegal in most countries to behave otherwise!
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