7 Rules for Biz Shopping Online
   By Lee S. Shaffer

Launching a new company requires stuff – office supplies, filing cabinets, computer software. And there are online merchants just itching to sell you their wares.

You can buy nearly everything you need right online and have it conveniently delivered to you door.

But before you go on a shopping spree to outfit your new office, beware. Not all online transactions go smoothly. To protect your small business, follow these seven rules when cyber shopping.

1. Shop at secure sites
Secure sites are encrypted so that a third party can’t see the private information that you’re sending across the Internet.

To verify that a site is secure, look at the URL address. Many secure sites have an “s” after the http:. Others will show a small padlock icon in the URL address line or in the lower right corner of your computer screen. Depending upon your Internet browser’s setting, you may see a pop-up window indicating that you are entering or exiting a secure site.

2. Guard your information
Never give out your federal tax identification number or your Social Security number. Keep your mother’s maiden name a secret too. Retailers have no legitimate reason for requesting that information.

All online stores require you to fill out forms. After all, they need your shipping address and payment information. But give them only the information that’s required. Most sites indicate mandatory information by highlighting the questions in red or marking them with an asterisk.

One piece of information you should always provide is your business name, even if the delivery of goods is coming to your home address. When your package arrives, the receipt inside will list the delivery address, your business name and a list of the items you ordered. Should the IRS ever tag you for an audit, that receipt will prove that you ordered items for your business, not your personal use.

3. Know shipping fees
Shipping charges add cost. Know the fees before you place your order.

Many online retailers offer free shipping if you purchase more than a certain amount. When possible, group your order to take advantage of the savings.

4. Protect your privacy
At the time of checkout, some online retailers try to snag you for their mailing lists. Usually, these firms automatically have a box checked that indicates you want to receive their future e-mail offers and promotions.

But do you? If not, uncheck the box.

If so, be prepared for a multitude of e-mails. And be sure to understand the online company’s privacy policies. Do they sell or rent their mailing lists to others? Do they share your information with their affiliates? Those policies should be clearly stated on the Web site.

5. Pay with a credit card
Paying for purchases with a credit card is the safest method for online transactions. If fraudulent charges appear on your card, federal law limits your liability to just $50. Card-card issuers will also help you resolve disputes that might arise between you and the online merchant.

Be sure to use your business credit card to pay for online business purchases. Use your personal cards for personal purchases. Mingling personal and business money is a no-no in the eyes of the IRS.

6. Get the details
Before you do business with an online merchant, be sure all of these details are posted on the retailer’s Web site:

• Policies for returning merchandise
• Policies for getting refunds, credits or exchanges on returned merchandise
• A toll-free phone you can call for customer service or order status
• An e-mail address for customer service, purchasing questions or dispute resolution

7. Look for trustworthy seals
Conduct online business with merchants that display seals of approval. These seals assure you that a retailer adheres to best business practices.

TRUSTe (www.truste.org) issues the familiar green-and-black, rectangular “trustmark” symbol. An independent, nonprofit organization, TRUSTe issues its seals to companies that comply with strict standards of online privacy. A TRUSTe-certified Web site must disclose what personal information is being gathered and how it will be used.

Another seal of approval comes from the BBBOnline (www.bbbonline.com). A BBBOnline Reliability Program seal means the company has met the program’s standards. Those standards include being a member of a local Better Business Bureau, following good customer service practices and meeting truth in advertising guidelines.

(Posted August 2004)

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