Internet as a channel

Many companies consider the Internet as a completely new type of channel and are not clear about how it impacts traditional distribution and commercial agency models. There is a biblical expression that “there is nothing new under the sun” and when it comes to the Internet, there is much truth to it.

If you consider the Internet to be just another route to market that complements and augments your existing sales infrastructure, even if it replaces existing channels, web transactions still fall into one of the three categories of transactions discussed in Section 1. Either you are doing business directly with resellers or end customers on the network, paying a commission to a web-based reseller, in which case it is a representative transaction, or simply using the Internet as a basis for referrals.

In any case, the current legislation covering this type of transaction in different jurisdictions applies and, in addition, you are under the auspices of the Distance Selling Regulations that are analyzed in the following section. So that’s the Internet from a structural point of view, but what about the Internet as a route to market from a purely business perspective?

Brochure Website

A brochure website is designed to present your corporate details to your customers, channel partners, investors, and other interested parties. While it will present products and services and possibly make a sales pitch, it is not an e-commerce site or a route to market. It should be considered as a marketing and branding resource that is fundamentally different in its design than a website whose main function is to sell.

online contracts

For the most part, online contracts are no different than contracts you conclude in another way. There is something to negotiate, an offer, an acceptance and a consideration. Where online contracts differ from others is in how each of these steps is accomplished and the obligations you have as a provider, especially if you are dealing directly with consumers. These obligations are discussed in more detail in the following section on distance selling regulations.

e-commerce website

An eCommerce website can be viewed as:

– A B2B channel if the target customers are companies
– A retailer if the target customers are consumers.
– An agent if you facilitate a sale with a third-party provider on commission
– A direct sales channel if the provider has enabled its own website.

In many cases, as in the cases of Amazon and Ryanair, for example, the site serves as a channel for direct sales, distributed sales of products (which the owner of the site buys and resells), but also as a platform for the sale of products from third parties. products for parties on commission.

Before setting up an e-commerce capability, it is important to be clear about exactly what its purpose is and to be aware of the complex legal obligations of multi-use sites. However, more important is the design of the site. Driving traffic to it and converting prospects into customers on the Internet requires specialized knowledge and skills.

Distance Selling Regulations for Consumers

Businesses wishing to sell to consumers via the Internet (direct sales) are subject to legislation called the Distance Selling Regulations. Basically, the legislation exists to ensure that contracts can be properly and fairly enforced remotely and that consumers are protected in the same way as when they buy products or services at retail outlets.

What the regulations cover

The regulations exist to provide protection for consumers who purchase goods or services:

– by phone
– by direct mail or mail order
– via Internet
– through digital TV purchase channels

This list is not necessarily exhaustive, as the rules apply to any situation where a consumer enters into a purchase contract without face-to-face contact with the seller.

Basic obligations of the provider

It must be possible to conclude the contract within 30 days unless the customer and the seller have agreed on a longer period. If the supplier is unable to deliver within this time, the customer can cancel the order and is entitled to a full refund. In some cases (for example, supermarkets) suppliers offer alternative and equivalent products if what the customer ordered is not available. This can only be done if the client has agreed to it beforehand. Furthermore, when they receive the alternative goods, they are free to decide not to keep them and return them at the supplier’s expense.

Other obligations

Before a distance selling contract can be legally concluded and executed, the supplier must inform the customer of the following:

– The identity of the supplier, i.e. who exactly the customer is dealing with
– A detailed description of the products/services.
– The price of the goods/services, taxes included
– How long will this price be valid
– Details and delivery charges
– Payment methods (and the provider’s address if the payment is in advance)
– Details of how the client can cancel the contract
– If the contract continues (for example, a subscription to a magazine), the minimum duration of the contract
– Written confirmation (fax or email accepted) of all of the above. If this is not provided prior to delivery of the goods, the contract is not enforceable.

cooling off

To further protect the consumer, the regulation establishes a reflection period of seven business days (not calendar). During this time, the customer can cancel the contract without having to give a reason. If the goods have already been received, he can return them and the only cost he bears is the cost of return shipping or postage.

If the customer has not received the written confirmation, as described above, in time, the reflection period will be extended by a further 90 days.