Here is your first Forum » Functions of an online trading company

The main function of an online trading company is to buy goods from a manufacturer and resell them to retailers and consumers. A secondary but nevertheless essential task is the delivery of the goods to the customers, as online trading companies usually lack physical infrastructure such as shops, outlets and other points of sale.

In order to buy and sell goods, an online retailer needs to set up a hub for transferring products from manufacturers to customers. In this case, that hub is a website. Just as a physical store needs designers and marketers to arrange and present products in the most advantageous way, a digital store also needs specialists to guide customers through the possible purchase options.

As for the delivery of goods, an e-commerce company can either set up the delivery network itself or outsource this task by contracting with a logistics company. The online retailer then hands over his goods to the logistics company, which takes care of the delivery of the goods via its own network.

Key aspects of online trading
Although the goods or services sold by online retail companies vary, there are some common elements due to the specific way these companies market and sell their end products. Here are some of the main problems you will encounter no matter what you sell online.

Distance selling
A special category of online trading is EU distance selling. E-commerce has grown tremendously in Europe and the online market is growing year after year. However, every retailer needs to understand the impact of e-commerce in the EU on VAT. VAT rules are very different for online sellers; For example, there are different thresholds for VAT registration (e.g. £70,000 for the UK, EUR 35,000 for Poland or Italy, EUR 100,000 for Germany). There is no minimum threshold for digital, electronic and broadcast service providers to charge VAT at the rate set by the country where the consumer is located.

Online stores and websites
Of course, a website is an absolute must for any online business. Conceived as an online store (description of the range of products available, their prices and features), the site must also include the following important sections:

Delivery and return policy
Contact Us page with a phone number, address, email address, and other contact information for consumers to use
Online payment options
Online Payment Solutions
Being able to accept online payments is by far the most important consideration for an online business. Your consumer needs a way to pay for your products and services instantly and securely. There are two basic ways to accept payments on your online store:

By using an online payment system, for example PayPal
By using a merchant account to accept direct credit card payments
A merchant account is a special bank account opened for online business purposes to enable secure transactions between merchant and customer. Merchant accounts are set up by agreement between the bank and the merchant and allow you to accept payments in many ways, usually by credit or debit card. In fact, banks aren't the only companies that can set up merchant accounts; this may also be done through other financial services companies that process credit card payments.