1. Identify Your Business Model
The Act distinguishes between an intermediary business, which facilitates sales by other sellers, and an inventory-based business, which sells goods or services it owns directly to customers.
The distinction matters when assessing obligations. A business operating a marketplace while also selling its own products should examine both roles.
Prepare a clear description of who sells the product, accepts payment, issues the invoice, arranges delivery and handles returns. Customers should be able to understand these arrangements before placing an order.
2. Complete Registration and Listing
Businesses should review their business registration, tax status and any product-specific licences before launching.
The E-Commerce Directive, 2082 provides for listing through the Department of Commerce, Supplies and Consumer Protection’s portal. It also addresses applications, supporting information and updates to listed particulars.
Treat listing as part of ongoing compliance. Assign responsibility for maintaining the portal record and checking that the information displayed to customers remains accurate.
3. Provide Clear Information Before Purchase
Product pages and checkout screens should enable customers to make an informed decision. Review descriptions, prices, delivery charges, expected delivery dates, warranty terms and cancellation or return conditions.
Avoid presenting an attractive headline price that becomes materially different at checkout. Product photographs and descriptions should correspond to what the customer will receive.
A useful internal control is to review each product listing against a standard checklist before publication and whenever the product or commercial terms change.
4. Allocate Seller and Platform Responsibilities
Marketplace agreements should clearly address product information, stock availability, order processing, invoicing, delivery, complaints and refunds.
They should also specify how the parties exchange documents, investigate disputed orders and recover amounts where one party’s failure causes loss. These arrangements help manage the relationship between the seller and platform.
Under Sections 14 and 16 of the E-Commerce Act, platforms and sellers must enter into the required agreement, and sellers must provide registration, tax and product particulars. Section 20 of the Act prevents a platform from avoiding responsibility for addressing complaints merely because it did not manufacture or import the goods.
5. Implement Returns and Refunds in Practice
A published return policy is useful only if staff can apply it consistently. Establish a process for receiving requests, assessing the issue, arranging collection and processing the remedy.
Section 10 of the E-Commerce Act addresses goods or services that do not match the disclosed description. Subject to its conditions, the customer may return them and receive the applicable replacement or refund. A blanket “no returns” statement should therefore be reviewed carefully.
Maintain records explaining why a request was accepted or rejected. Avoid repeatedly referring customers between the seller, platform and courier without resolving the issue.
6. Maintain Reliable Payment and Delivery Records
Keep an accessible record of the order, agreed terms, payment, invoice, dispatch and delivery confirmation. This enables the business to investigate missing parcels, incorrect products and disputed payments.
Courier agreements should address collection of payments, failed deliveries, damaged goods and reconciliation. The customer-facing process should explain whom to contact when an order does not arrive.
Review refund workflows alongside payment systems so that approved refunds can be tracked through completion.
7. Protect Customer Information and Handle Complaints
Section 12 requires confidentiality of personal information, subject to lawful use and permitted transaction-related sharing. Section 33 provides for a grievance mechanism and resolution within 15 days of receiving a complaint.
Practical measures include restricting staff access to customer records, reviewing courier and service-provider access, and maintaining a complaint register. Each complaint should have an assigned handler, a response record and a documented outcome.
Frequently Asked Questions
Does the Act cover sales through social media?
Its definition of an electronic platform includes social-media marketplaces. Merely using an online channel to provide information or promote products is excluded from the definition of e-commerce. The actual transaction process matters.
Can a marketplace sell its own products?
A mixed business should assess the obligations applicable to each activity and clearly identify the seller for each transaction.
Is a seller agreement enough to protect the platform?
It helps allocate responsibilities, but the platform must also comply with its own legal obligations and operate effective customer-service procedures.
Should every business use the same return policy?
No. Policies should reflect the products, applicable legal rights and fulfilment arrangements. Copying another platform’s terms can create commitments the business cannot implement.
What documents should be reviewed before launch?
Review seller agreements, customer terms, product disclosures, privacy notices, return and refund policies, courier arrangements and internal complaint procedures.
How Alpha Law Associates Can Assist
Alpha Law Associates assists online sellers and marketplace operators with business establishment, e-commerce listing, seller agreements, customer terms and compliance reviews. We also advise on returns, complaints and disputes involving online transactions.