{"id":207553,"date":"2021-07-06T15:33:08","date_gmt":"2021-07-06T02:33:08","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=207553"},"modified":"2025-04-09T13:56:33","modified_gmt":"2025-04-09T00:56:33","slug":"start-online-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/e-commerce\/start-online-business\/","title":{"rendered":"What to Check Before You Start an Online Business"},"content":{"rendered":"\n<p><a href=\"https:\/\/legalvision.co.nz\/e-commerce\/legal-considerations-for-starting-an-online-business\/\">Launching an online business<\/a> enables you to take advantage of the continually developing digital landscape to access new markets and reach customers that you perhaps could not have accessed previously. Without a physical store, you also have lower start-up costs and the ease of being able to work from almost anywhere you want. However, starting an online business requires careful preparation. This article will go through six things you should check before you start an online business in New Zealand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Determine What You Are Selling<\/h2>\n\n\n\n<p>Before you start anything, you need to figure out:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>what you are selling;<\/li>\n\n\n\n<li>who you are going to sell it to; and<\/li>\n\n\n\n<li>whether there is a demand in the market for your idea.<\/li>\n<\/ul>\n\n\n\n<p>If you are selling products, find out how you can source them or their materials sustainably and what contractors you need to engage. If you sell services, determine whether you need any relevant licences or experience to provide those services. Some areas translate more easily to online business than others do, so it is crucial that you plan ahead to determine how you can get your idea off the ground.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <!-- wp:paragraph -->\n<p>For example, if you want to start an online dropshipping business, set aside time to determine:<\/p>\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item --><\/p>\n<li>what manufacturers you want to engage;<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>what products you want to sell; and<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>how you will facilitate the sale process.<\/li>\n<p><!-- \/wp:list-item --><\/ul>\n<p><!-- \/wp:list --><\/p>\n<\/div>\n\n\n\n<p>Overall, small and easily shippable items usually translate better for successful online sales and delivery.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Choosing an Appropriate Business Structure<\/h2>\n\n\n\n<p>Check that you have chosen the most appropriate business structure. While you can change your business structure after you begin trading, it can be a lengthy and unwieldy process.\u00a0<\/p>\n\n\n\n<p>For instance, if your online business is a solo operation and you are not planning for growth, a sole trader structure may be appropriate for you. However, if a group of you are operating the business and you have plans for future growth, incorporating your online business as a company may be more beneficial. A company structure also limits your personal liability, which is important in higher risk industries. Depending on what you choose, you will need to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>register an NZBN;<\/li>\n\n\n\n<li>register your company; and<\/li>\n\n\n\n<li>acquire an IRD number.<\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    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aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2452_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2452_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label 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Determine Where You Are Selling<\/h2>\n\n\n\n<p>You may not operate from a physical store, but you do operate from a digital placeholder online. Before you launch, you will need to decide what form that digital placeholder will take. You can run your business from:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your own bespoke website;<\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.nz\/e-commerce\/implementing-e-commerce-solution\/\">an e-Commerce platform<\/a>; or<\/li>\n\n\n\n<li>an online marketplace.<\/li>\n<\/ul>\n\n\n\n<p>These vary in how much control you have. In particular, when you make your own website, your website can operate according to your rules, and there are usually no terms and conditions you need to abide by. E-Commerce platforms allow for flexibility, but you have to comply with their contract terms. Conversely, setting up a shop on an online marketplace is very straightforward, and you gain already established customers but lose the personalisation you may gain from the other two options.<\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>It may be a good idea to set up shop both on your own website (or e-Commerce platform) and an online marketplace to take advantage of the benefits of both.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">4. Registering a Unique Domain Name and Relevant IP<\/h2>\n\n\n\n<p>Depending on where you want to operate online, you may need to&nbsp;<a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/register-domain-name-online-business\/\">register a domain name<\/a>. A domain name is the website address your customers will type into their browser URL to find your online business, much like a physical address. The key here is to choose a unique domain name that will:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>help your customers remember your business;<\/li>\n\n\n\n<li>be easy to recall and search up later; and<\/li>\n\n\n\n<li>not be similar enough to another business to confuse the two of you.<\/li>\n<\/ul>\n\n\n\n<p>The same considerations apply to registering your intellectual property, such as trade marks and designs. If customers confuse your business with another, then this can negatively impact your market sales and you risk breaching a third party&#8217;s intellectual property rights. <\/p>\n\n\n\n<p>Therefore, before you decide on your branding or domain name, use a tool like\u00a0<a href=\"https:\/\/www.business.govt.nz\/onecheck\/\">ONEcheck<\/a>\u00a0to determine what branding and ideas already exist.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/17082932\/return-to-work-safely-toolkit-nz.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Marketing Plan - Digital Business<\/div>\n            <div class=\"body-text\">\n                <p>Need help marketing your digital business? Use LegalVision\u2019s free Marketing Plan for Digital Businesses template to create a robust marketing plan.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/marketing-plan-template-digital-business-nz.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">5. Prepare Important Legal Documents<\/h2>\n\n\n\n<p>When operating online, you need to define your contractual relationship with your customers to provide transparency and to protect your business. You also need to let them know how you protect their privacy and other relevant information. Before you launch your online site, be sure that you have the following documentation to achieve these tasks:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>terms and conditions\/website terms of use; and<\/li>\n\n\n\n<li>a privacy policy.<\/li>\n<\/ul>\n\n\n\n<p>Customers should check a tickbox confirming their acceptance of these important documents.<\/p>\n\n\n\n<p>You should also confirm contracts with important third parties, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>non-disclosure agreements;<\/li>\n\n\n\n<li>supplier\/manufacturer agreements; and<\/li>\n\n\n\n<li>courier contracts.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">6. Look Into What Laws Apply to Your Business<\/h2>\n\n\n\n<p>Various laws apply to your business when operating online. Where you are selling goods or services to consumers, you will need to comply with New Zealand\u2019s consumer protection and privacy laws. Where you are selling to consumers overseas, you will need to comply with the legal requirements of the jurisdictions where consumers are located. Therefore, on top of the topics listed above, you need to determine how these regulations apply to you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>contract law; <\/li>\n\n\n\n<li>consumer law;<\/li>\n\n\n\n<li>privacy law; and<\/li>\n\n\n\n<li>email marketing law<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Starting an online business can be a successful venture if you have an idea that there is demand for. However, before you start, you need to ensure you have an efficient plan and know what regulations apply to your business. <\/span><\/p>\n\n\n\n<p>If you are starting a business, our experienced <a href=\"https:\/\/legalvision.co.nz\/online-business-ecommerce-lawyers-lp\">ecommerce lawyers<\/a>\u00a0can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on\u00a0<a href=\"tel:+64800005570\">0800 005 570<\/a>\u00a0or visit our\u00a0<a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1625538144012\"><strong class=\"schema-faq-question\">Does privacy law apply to my online business?<\/strong> <p class=\"schema-faq-answer\">Your online business likely deals with personal information, such as customers\u2019 names, phone numbers and email addresses. Therefore, you must comply with the <em>Privacy Act<\/em> and handle customers\u2019 personal information carefully.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1625538159097\"><strong class=\"schema-faq-question\">How does consumer law apply to my online business?<\/strong> <p class=\"schema-faq-answer\">When you sell goods or services to consumers, you must do so while upholding various consumer guarantees about the quality of those goods or services. This rule applies to any online business as well as physical ones.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/207553\" \/>            <input value=\"https:\/\/legalvision.co.nz\/e-commerce\/start-online-business\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What to Check Before You Start an Online Business\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Launching an online business enables you to take advantage of the continually developing digital landscape to access new markets and reach customers that you perhaps could not have accessed previously. Without a physical store, you also have lower start-up costs and the ease of being able to work from almost anywhere you want. However, starting<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/start-online-business\/\">Continue reading <span class=\"sr-only\">&#8220;What to Check Before You Start an Online Business&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13388,"featured_media":201741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1841,153,1063,204632,218875,213573","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[6],"tags":[23,24,443,811],"class_list":["post-207553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-start-a-business","tag-startup","tag-e-commerce-business","tag-online-store"],"acf":[],"yoast_head":"<!-- This site is optimized with the 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She graduated in 2022 with a Bachelor of Laws and a Bachelor of Business, majoring in Management.","url":"https:\/\/legalvision.co.nz\/author\/taylerberridgesmith\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/e-commerce\/start-online-business\/#faq-question-1625538144012","name":"Does privacy law apply to my online business?","acceptedAnswer":{"@type":"Answer","text":"Your online business likely deals with personal information, such as customers\u2019 names, phone numbers and email addresses. 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