Judge, Jury, and eCommerce: The Laws That Govern Online Business with Paul Rafelson [Ep.116]

Dec 23, 2022

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Many online business owners assume that because they work online they are exempt from the laws and regulations of different states and countries.

Unfortunately, this assumption is not true and can result in unsuspecting sellers finding themselves in hot water with the law.

In many cases, the law hasn’t caught up to the advancements made in online business which often leads to eCommerce sellers being treated unfairly.

It was this injustice that inspired Paul Rafelson to defend eCommerce sellers. Paul is a Partner at Rafelson Law PLLC, a law firm that specializes in eCommerce law, Intellectual Property, M&A, Amazon Suspensions, Disputes, and more.

In this episode, Paul walks us through the common legal problems that eCommerce sellers face. He breaks down the nexus tax issue that plagued Amazon merchants and explains the key points your Amazon insurance policy should contain.

We also dive into how having an M&A lawyer in your corner when selling your business can make a world of difference. According to Paul,

“Aside from marriage and children, selling your business will probably be the most important transaction of your life. It’s your game-changing story, and that’s huge, so you want to do it right.”

Paul explains the nuances of negotiating with aggregators vs normal buyers and shares tips on how to ensure a successful negotiation. He also reveals some of the potential pitfalls of earnout agreements and how to ensure you get the money owed to you.

If you want to ensure that your eCommerce business stays on the right side of the law, then don’t miss a second of this episode!

Topics Discussed in This Episode:

How Paul became a lawyer and got into the online business industry (04:12)
The nexus tax issue that inspired the formation of Paul’s law firm (13:53)
The common legal problems that Amazon sellers face (20:43)
The legal risks of starting an FBA business vs Shopify (36:52)
An overview of what an Amazon insurance policy should contain (44:16)
The benefits of hiring an M&A lawyer when selling your online business (45:37)
The differences between negotiating a sale with aggregators vs citizen buyers (49:25)
The potential dangers of earnouts (53:25)
Paul’s tips for eCommerce sellers when it comes to negotiating with buyers (57:35)

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Sit back, grab a coffee, and learn valuable insights about eCommerce law!