Other Disadvantages

Laws

When you do business on the Internet, you are subject to the laws of the countries where customers can access your website, according to the Entrepreneur website. Your Internet business is be subject to privacy laws in the United States and overseas, copyright laws worldwide and tax laws that normally depend on where your company is located. If you have materials that should not be accessed by people under a certain age, you have to follow certain legal provisions before your site can go live. Consult an attorney knowledgeable in international commerce law as you create your website or you could be opening yourself up for lawsuits and legal action by domestic and foreign governments.

Lack of Trust

Consumers are sometimes wary of purchasing products online, Rod Kurtz writes for the Bloomberg Businessweek website. Become certified by one of the better-known online security organizations such as Verisign and the nonprofit Internet watchdog organization TRUST. You cannot establish a rapport with customers in person when you run an Internet business, so you need to do what you can to establish trust in other ways. Even with all of the precautions you take, a segment of the buying public may not feel comfortable providing its payment information on the Internet.

Copycats

Since the Internet reaches millions of people every day all over the world, it is essential to stay ahead of the competition. One of the problems with doing business on the Internet is that it can be expensive to copyright or patent your website ideas globally, Internet business advisor Steve Ma. Renya writes on the Power Home Biz website. If you work hard and create a successful Internet business, there is a good chance that someone will try to copy it and draw business away from you. The inability to protect your ideas can be a disadvantage of doing business on the Internet.