Digital Trade & E-Commerce
View GuideDispute Settlement
What happens if there is a breach of commercial contract? If your business trades with a company based in another country or customs territory, this is classed as ‘cross-border trade’ and effectively it means, in legal terms, that the other party is not necessarily subject to the jurisdiction of courts where you are based. It is important that you get the right commercial agreements in place, and confirm the law applicable to the contract, and a dispute resolution mechanism, at the very start of trading internationally. Although you hope it will never happen, should a dispute arise, it is always better if you can have it resolved in your local court, with your own lawyers and in your own language. If this is not possible and the dispute involves an overseas jurisdiction, this can complicate things and you would need to obtain legal advice familiar with commercial law in both country’s jurisdictions. Points to consider when drawing up a contract: Look to minimise your risk with fair and transparent contracts and terms and conditions. Appoint a legal professional / specialist international trade lawyer to help guide you. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Don’t accept “standard terms” with which you cannot comply. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Be clear on the extent of your potential liabilities. It would usually be sensible to try and agree a cap on liability – in many cases this comprises a multiple of the contract value. Deliver on time to the terms of the contract When a breach of an international contract occurs, the parties encounter issues such as: What type of case it is. Where the case will be decided. Which law will be used to decide It is also important to agree on a dispute resolution mechanism at the start, choices can include: Judicial Proceedings Alternative Dispute Resolution ADR mechanisms Arbitration Mediation While choosing the mode of resolution, another factor to consider is where and whether the ensuing judgment or arbitral award will be recognized and enforced. It would not be helpful if, for example, the judgment or the arbitral award was in your favour but cannot be recognised and/or enforced in another state where your other contractual party has assets. The law applicable to the contract will be applied to settle the dispute arising from the negotiation, conclusion, performance, interpretation, or execution of the contractual terms. Links to Supporting Information The International Trade Centre ITC Model Contracts for Small Firms | ITC Model contracts are available free of charge WIPO (World Intellectual Property Organization) Alternative Dispute Resolution Alternative Dispute Resolution (wipo.int) New York Convention for arbitral awards 1958 New York Convention The UN (UNCITRAL) United Nations Commission on International Trade Law and Online Dispute Resolution: On-line Resources | United Nations Commission On International Trade Law
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The Importance of Cybersecurity
What is cybersecurity? Introducing Cybersecurity into your organization is a way individuals and businesses reduce the risk of cyber-attacks. It is also known as information technology security or electronic information security. Using technology and digital platforms for commercial activities exposes companies to cybercrime like phishing, malware, or data and identity theft. Cybersecurity embodies a set of systems, processes, and actions and its core function is to protect businesses from digital attacks. We all use smartphones, laptops, tablets and computers, and we access multiple services online at home and at work and we need to protect them from theft or damage. To reduce these cyber threats, learn more about how to protect your organization’s data, assets, networks, programs and your reputation from digital attacks. Introducing cybersecurity can protect your data and systems. Why does cyber security matter for my business? We all live in an increasingly interconnected world, and this has had many positive effects enabling businesses to collect and share more information, reach new customers and innovate. It has also though, led to a rise of criminal activities that profit from stealing customer data and spying on business practices. Small businesses can often be victims of cyber-attacks, putting their assets, data, information, and technology equipment at risk. Investing in sound cybersecurity systems can prevent you from suffering financial losses and corporate reputation damage. How cyber threats could affect business? Some examples of cyber threats that may affect your business. Phishing: This is a social engineering tactic that lures individuals into providing sensitive data by offering fake rewards. Through this tactic, criminals often target personally identifiable information, banking and credit card details, and passwords. Malware: This consists of malicious software that comes from website downloads, spam emails, and connection to other machines or devices. Hackers use malware to gain access to networks and steal or destroy data on computers. Ransomware: This is a form of malware that encrypts business files, making them no longer accessible. Criminals use it to demand a ransom in exchange for unlocking the data targeted. Weak passwords: Passwords are weak when humans or machines can easily identify them. Criminals that correctly identify passwords have easy access to business accounts that store confidential and sensitive data. Insider threats: These threats are performed by current or former employees, business contractors or other associates who seek to access critical business data for illicit purposes. How can I protect my business against cyber risks? Protecting your business from cyber risks can enable you to counteract criminal activity and keep pace with emerging trends in data privacy. You can start planning cybersecurity strategies by identifying systems, data, and users that are essential for your business operations. This mapping exercise will highlight vulnerability points that can be the subject of your cybersecurity goals and strategies, as well as help you to develop a cybersecurity plan at your business. Links to Supporting Information Cyber Research Institute Roadmap A guide to being cyber ready. Cyber Research Institute Cyber Readiness Program – Cybersecurity Awareness Workforce Training This program guides SMEs (Small and Medium Enterprises) to become cyber against cyber threats. GCA (Global Cyber Alliance) Cybersecurity Training Small Business and Know What You Have – GCA Cybersecurity Toolkit | Tools and Resources to Improve Your Cyber Defenses The Global Cyber Alliance (GCA) offers a cybersecurity toolkit designed for small businesses and online training courses. US Small Business Administration Strengthen your cybersecurity The United Kingdom’s National Cyber Security Centre and Small & medium sized organisations – NCSC.GOV.UK provides training and certification. Government of Canada Cyber Secure Canada offers an SME-targeted certification scheme.
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Digital Tools and Approaches
How can technology help my business trade? Businesses that adopt new technologies are better positioned to seize opportunities in global marketplaces.
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Selling Abroad Online
Why might I want to sell online? Selling online offers a competitive edge to small businesses seeking to expand into new markets. It is often a lower cost, lower risk business model for small businesses starting out in international trade. Retail e-commerce sales worldwide have seen a rapid increase in recent years. E-commerce can be a quick and effective way to attract more customers. By selling online, it is possible for you to reach a new global customer base with lower overhead than if sales were only made through physical stores. How can I sell online? From online marketplaces and platforms to social media and e-commerce websites, there are a wide range of digital sales options in addition to traditional or physical stores. Some of the most common ways to sell online are listed below. Marketplaces: These could be general or specialized by market sector (for example textiles, or electronics). General marketplaces are suitable to sell products or services with mass appeal when branding is not a business priority. In contrast, specialized marketplaces enable businesses to position their brands, find market niches, and offer customized value propositions to clients. Listing websites: These are useful for MSMEs with business models that focus on buying and re-selling common items. They are also appealing for businesses that sell by offering competitive prices or promoting additional features of goods and services advertised on the web. Social media: Social media platforms enable businesses to create customized webpages linked to online e-commerce sites and marketplaces with mass reach. Your own online webshop: Building and maintaining your own online shop can be effective, you can engage a commercial company /website builder to do this for you. This is the quickest, easiest route to creating a sleek, professional online presence for your ecommerce business. Many companies also offer competitively priced template sites that you customize. Or, if you have the knowledge and skill, you can code your own. What should I consider before selling online? A starting point is to plan a sound e-commerce sales strategy and get customer feedback on products and services. Either through social media or direct contact channels, you can reach out directly to potential customers to understand their needs and find target markets domestically and/or internationally. Understanding your customer base can help you customize products and services and identify market entry options. Other things to consider include payment methods, as well as the shipping and returns policies that may be best suited for your customers. These may vary depending on the market. You should also research market access requirements that may affect your products and services(see the Trade4MSMEs guides on services export potential and services contact points)Services Contact Points have more information. Many businesses can benefit from online communities and training courses about online sales methods and e-commerce strategies. Links to Supporting Information WTO (World Trade Organization) regional initiatives on e-commerce WTO | Electronic commerce UNCTAD Global E-Commerce Jumps to $26.7 Trillion, Covid-19 Boosts Online Retail Sales | UNCTAD Statista Global retail e-commerce sales 2026 | Statista International Trade Centre (ITC) ecomConnect: ecomConnect | E-commerce Community Engagement Platform for Everyone Is an e-commerce online community Trade4MSME Guide Export Potential Guide Trade4MSME guide Services Contact Points ITC Online training courses ITC SME Trade Academy – Catalogue (intracen.org) ITC ITC SME Trade Academy – Summary of Introduction to E-commerce (intracen.org) ITC ITC SME Trade Academy – Summary of Using Virtual Marketplaces for your E-commerce Initiative (intracen.org) ITC ITC SME Trade Academy – Summary of Creating Quality E-commerce Content (intracen.org) ITC ITC SME Trade Academy – Summary of E-Commerce for your B2B Business (intracen.org) Google Free Online Marketing & Career Courses – Google Digital Garage – Google Digital Garage (learndigital.withgoogle.com) Google Skillshop tutorials on using Google Ads Google Ads : Google (exceedlms.com) and Get a business online – Google Digital Garage (learndigital.withgoogle.com) PayPal How to Sell Internationally | PayPal US
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Cyber readiness and cybersecurity
What is cybersecurity? Cybersecurity embodies a set of systems, processes, and actions that protect businesses from digital attacks.
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Assessing E-Commerce Readiness
How can an e-commerce readiness assessment support my business? Selling online has advantages over selling in traditional shops and stores. Businesses can reach customers worldwide and enter new markets quickly and easily. Geography no longer creates the same physical barriers to trade. It is always best to check that you have everything in place before you start. An E-commerce readiness assessment can help you evaluate what stage you are at. What is an e-commerce readiness assessment? An E-commerce readiness assessment is the starting point to help any businesses understand what is needed to design an online sales strategy. An e-commerce readiness assessment is a tool that evaluates the capabilities needed to set up and run a successful online business. It will help you evaluate strengths, as well as identifying areas that need improving. It shows that by investing in market research, online payment systems, developing good fulfillment and logistics, and creating great customer service experiences, will help build a more successful business. What is the structure of an e-commerce readiness assessment? The International Trade Centre ITC has developed a quick and easy short quiz to check your businesses readiness to start online sales. It will look at the following five sections: E-commerce planning: This involves getting you to think about your product and services value proposition, ask yourself why customers should buy your products. It gets you to think about your ideal target customers. Confirm if your products or services comply with regulations in your target markets. Online presence: This involves identifying whether you are going to run your own e-commerce website, or if you will list products and services in marketplaces. Digital marketing: This involves looking at the extent to which businesses use digital marketing to promote their online sales and monitor digital goals and key performance indicators (KPIs). Shipping and inventory: This involves checking that your inventory, fulfillment and shipping options meet the expectations of your customers. Confirming that you can manage the customs import duties, taxes and other charges needed is essential. Customer service: This involves understanding what good customer service is and that your business is supplying the right information about products and services. Coupled with the ability to communicate, interact and build trusted relationships with your customers and clients, will ensure your business will thrive. Links to Supporting Information ITC International Trade Centre ITC ecomConnect – Readiness an e-commerce readiness assessment quiz ITC International Trade Centre How to Start Your First E-commerce Business | ecomConnect ITC ITC ecomConnect – Calculator & Video tutorials from ecomConnect Strive Community’s Ecommerce Training Toolkit ecomConnect IOE&IT Export essentials: How to make the most of ecommerce platforms – The Institute of Export and International Trade
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E-commerce Readiness Assessment
How can a country be ready for e-commerce? E-commerce readiness refers to a variety of policies, frameworks, and institutional actions that enable countries to engage effectively in e-commerce.
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Blockchain / Distributed Ledger Technology (DLT)
What is blockchain? Blockchain, or distributed ledger technology (DLT), is a decentralized digital network of records that can be simultaneously accessed by all permitted users and that are automatically updated and validated if an authorized change is made. All changes are time-stamped and DLT transactions are based on consensus, replication, and immutability. This provides a high level of security, even in transactions where parties do not know each other or have other verification tools. Why does blockchain matter for MSMEs and trade? Blockchain technology holds the potential to facilitate trade transactions and access to finance, along with reducing costs. By providing an immutable record of transactions, MSME with access to IT infrastructure and the right digital know-how may be able to use this technology in their international trade dealings or provide alternative documentation to verify their credibility when trying to access finance. From identity management to smart contracts, a Finextra article entitled Blockchain: A game-changer for Small and Medium-sized enterprises provides additional information on the benefits of blockchain for MSMEs. What can policymakers do? While blockchain technology could reduce barriers for MSMES to engage more in international trade, there are a number of challenges that need to be overcome. Some challenges relate to blockchain technology adoption, including: scalability; security; interoperability; and the lack of clear legal framework. Other challenges relate to MSMEs themselves, including the lack of technical skills and internet access to adopt, use and seize the benefits of blockchain technology. Where can policymakers access more resources? The International Trade Centre’s (ITC) SME Academy: In partnership with the World Trade Organization, the ITC has a free online course called Introduction to Blockchain. Information Technology and Innovation Foundation (ITIF): The ITIF has A Policymaker’s Guide to Blockchain that is a resource on what blockchain is and its applications. It also outlines considerations for regulating this technology. The International Telecommunications Union (ITU): The ITU provides a focus group on the application of distributed ledger technology. More information is available here. The Organisation for Economic Co-operation and Development (OECD): The OECD has several resources for policymakers on blockchain, including a chapter in their report entitled The Digital Transformation of SMEs. This chapter is called How can blockchain ecosystems serve SMEs. They also have a 2019 report on The Policy Environment for Blockchain Innovation and Adoption. The United Nations Economic Commission for Europe (UNECE): The UNECE continues to look into blockchain technology and its relation to trade, including through events and papers such as the technical applications of blockchain in UN/CEFACT deliverables and blockchain in trade facilitation. UN/CEFACT refers to the United Nations Centre for Trade Facilitation and Electronic Business. The United Nations Conference on Trade and Development (UNCTAD): UNCTAD has published A Policymaker’s Guide to Blockchain Technology Implementation and Innovation with practical information for policymakers on the regulatory requirements. The World Trade Organization: The WTO has published various reports related to DLT, including the 2018 World Trade Report on The future of world trade: How digital technologies are transforming global commerce, as well as Can blockchain revolutionize international trade? These reports provide insights into the ways this technology can impact trade and MSMEs. Other resources, including the above-mentioned joint online course with the ITC, are available here. Where can policymakers access best practices and national examples? The European Blockchain Partnership (EBP): This is an initiative to develop an EU strategy on blockchain and build a blockchain infrastructure for public services. Visit the EU Commission website. The Arab Regional Fintech Working Group: This working group published a report on Strategies for adopting DLT/ Blockchain Technologies in Arab Countries. The report includes recommendations and an overview of other national blockchain initiatives, including in Australia and the Russian Federation. The ITU Distributed Ledger Technology use cases: Visit the ITU website to access a series of cases studying how DLT is put into practice.
