What is Online Trading?

Online transactions are mainly transactions performed on the virtual environment of the network. Similar to stores in the real world, the difference is the use of various means of e-commerce to achieve a virtual transaction process from buying to selling.

Online Trading

Online

Over the internet

The transaction object is divided into BtoB (business-to-business)

BtoC (Business to Customer Direct Sales)

CtoC (customer and client)

E-commerce is supported by modern information technology services

Modern society is becoming more and more dependent on information technology. The modern information technology service industry has become a technical support system for e-commerce.

(1) Online transactions (e-commerce) require technical services. That is, the implementation of e-commerce depends on the Internet, corporate intranet, etc.

The State Administration for Industry and Commerce announced on January 26, 2014 the "Administrative Measures for Online Transaction" ^[2] , which came into effect on March 15, 2014. The "Measures" require that online merchandise operators sell goods, and consumers have the right to return goods within seven days from the date of receipt of the goods without explaining the reason; except for four types of goods: fresh, perishable, and ordering.

The "Measures" stipulates that operators engaged in online commodity transactions and related services shall complete industrial and commercial registration in accordance with the law. A natural person engaged in online commodity trading shall conduct business activities through a third-party trading platform and submit its true identity information such as its name, address, valid identity certificate, and effective contact information to the third-party trading platform. Those who meet the requirements for registration shall go through the industrial and commercial registration in accordance with the law. Operators engaged in online commodity trading and related services that sell products or provide services that are subject to laws, administrative regulations, or decisions of the State Council shall obtain an administrative license, which shall be obtained in accordance with the law.

The "Measures" require that online merchandise operators who sell goods or provide services to consumers shall provide consumers with business addresses, contact information, quantity and quality of goods or services, prices or fees, deadlines and methods for performance, forms of payment, and exchanges. Cargo methods, safety precautions and risk warnings, after-sales service, civil liability and other information, take security measures to ensure that transactions are safe and reliable, and provide goods or services as promised.

The "Measures" emphasize that when selling goods or providing services, online commodity operators shall ensure the integrity of the goods or services, shall not unreasonably split the goods or services for sale, shall not determine the minimum consumption standards or otherwise charge unreasonable fees.

The "Measures" stipulates that online commodity operators who sell goods or provide services shall issue consumers with invoices or service documents such as invoices in accordance with relevant state regulations or business practices; if consumers have obtained consent, they may do so in electronic form. Electronic purchase vouchers or service documents can be used as the basis for handling consumer complaints. When a consumer requests a purchase certificate or service document such as an invoice, the online commodity operator must issue it.

In addition, the Measures specifically stipulate that when an online commodity operator sells goods, consumers have the right to return the goods within seven days from the date of receipt of the goods, without explaining the reasons, except for the following goods:

(1) ordered by consumers;

(2) Fresh and perishable;

(3) Digital products such as audiovisual products and computer software downloaded online or unpacked by consumers;

(4) Newspapers and periodicals delivered.

Except for the goods listed in the preceding paragraph, other goods that are not suitable for return based on the nature of the goods and confirmed by consumers at the time of purchase are not applicable for no reason to return.

The Measures stipulate that the goods returned by consumers should be intact. The operators of online commodities shall return the price of the commodities paid by consumers within seven days from the date of receipt of the returned commodities. The shipping cost of returned products shall be borne by the consumer; if there is another agreement between the network commodity operator and the consumer, the agreement shall be followed. ^[3]