E-Business Info-Guide

This info-guide provides an introduction to E-Business and will help you understand what it is, how it could effect your business and how existing regulations apply to E-Business transactions in the Yukon. It will assist you in navigating through the different federal and territorial government programs, services and regulations which deal with E-Business. Although many questions will be answered in the info-guide, the list is by no means exhaustive. This blended product of both federal and territorial information is developed to answer a growing demand for strategic information by business people. Municipal and other non-government information could be included, depending on the content and region.

Some of the organizations listed below are not subject to the Official Languages Act. Their services and resources may not be available in both official languages.

TABLE OF CONTENTS

1. Understanding E-Business
2. Regulations
3. Privacy and Security
4. Taxation
5. Export Rules
6. Consumer Protection
7. Financial Assistance
8. Training and Information
9. Business With Government
10. Related Sites
11. Resources

1. Understanding E-Business

What is E-Business?
The term e-business means conducting business on the Internet, including buying and selling products and services, providing customer service and collaborating with business partners.This document focuses on buying and selling products and services on the Internet (also known as electronic business, ebiz, e-commerce, business-to-business or B2B, business-to-consumer B2C.

For more general information on E-Business and use of the internet, please see the document Doing Business on the Internet.

The Vocabulary of E-commerce
A number of glossaries dealing with the Internet and new technologies have been published, but few have focused on the language of e-commerce. A few terms can be found scattered here and there, especially in the largest works. The Vocabulary of E-commerce fills this gap, as it was designed to meet the need expressed for a single publication on the terminology of e-commerce in English and French. An online glossary of E-Commerce terms is available on the Translation Bureau Web site (Public Works and Government Services Canada).

What is the Internet?
The Internet is a global collection of networks connecting and sharing information through a common set of protocols. It allows computers attached to networks to communicate regardless of manufacturer or brand, architecture, operating system or location.

Not only does the Internet allow open communication, but many forms of communication. Voice, data and video transmissions can be carried over one infrastructure. The Internet was initially used primarily for data transmission, but telephony - voice transmission - and video transmission are growing. Another advantage of the Internet is efficiency of data transfer.

What is the World Wide Web?
The World Wide Web (WWW) exists because of programs which communicate between computers connected to the Internet. Utilizing a Web Browser, anyone with a computer and Internet account can search and retrieve information from millions of Web Servers around the world. Some examples of Web Browsers you may be familiar with are Netscape Navigator and Microsoft Internet Explorer.

How can E-Business be used by businesses in the Yukon?
E-Business is not limited to certain types of businesses or just technology-related products and services. Companies in every field are doing business online. Networking through E-Business can be applied to any facet of a company's operations, including marketing and sales; purchasing and logistics; production; design and engineering. A highly effective use of E-Business is when several of these functions are combined: information flows from sales to purchasing, to production.

E-Business can be used to:

• Communicate: E-mail and Internet Access
• Promote Business: using Web pages to advise clients and potential clients about their business and its value, keep clients informed about products, services, developments, and use Web sites to solicit market research information from clients or guests who visit their site.
• Sell: to sell products, seven days a week, 24 hours per day throughout the globe;
• Promote product awareness: online marketing and advertising;
• Improve customer service: customer support and communication;
• Improve efficiency: to eliminate some costs of paper transactions and mailing;
• Offers the opportunity to work out of the home;
• Compete globally without setting up offices in other countries;
• Allow small companies to compete in the same market as larger companies
• Find information, conduct competitive intelligence, or network with other business owners.

E-Business also allows companies to improve communication linkages both internally and externally:

• Internally - Improve communications within your company using an Intranet.

Intranet: a private network inside a company or organization. Intranets are used to organize internal company operations, such as payroll and inventory.

• Externally - Improve communications with suppliers, customers and partners and integrate your business processes using an Extranet.

Extranet: connecting two or more intranets, allowing communication with business partners, suppliers, distributors or customers

In addition Business can also improve the way it does business:

• Creating New Business Models: Sharing resource with new partners to create virtual global enterprises.
• set up an arrangement whereby sales information is shared instantaneously with wholesalers, shippers, manufacturers, designers, and even suppliers of raw material.

If I don't want to sell electronically, why use E-Business? What are the benefits?
By going online, Yukon businesses are able to level the playing field and market their products and services to prospective customers from Teslin to Tokyo. E-commerce allows businesses to improve customer service by providing new ways for promotion and distribution, by responding more quickly to orders, and by offering better after-sales service. A local wilderness tourism operator, for example, can advertise winter adventures to German tourists and confirm their reservations via E-mail.

You can save time and money by improving the quality of supply chain management, by combining production and logistics with marketing and sales, and by letting the computer and software do most of the work in controlling inventory.

You can save time and money by improving internal functions, by cutting down on meetings, by sharing information, by eliminating endless trails of paper, and by assuring that internal communications are precise and understood.

How do I connect my computer to the Internet?
You (the user) sign a contract with an Internet Service Provider (ISP) for a dial-in (using a modem over your telephone line) or dedicated connection (such as cable or DSL) to the provider's equipment, which then gives you access to the Internet.

When looking for an ISP to connect your business to the Internet, consider what different ISPs charge for access time, reliability (e.g. no busy signals or interruptions in connection), speed of data transmission, technical and other services they offer.

Is selling on the Internet expensive?
At first, the costs to doing business on the Internet can seem intimidating, but compared with what you can accomplish in the areas of marketing and retailing on the Internet versus in the traditional commercial world, it can be a very cost effective solution. The cost will depend on the size, nature and sophistication of the enterprise, inventory, marketing requirements and various other factors. Here are some of the costs you may face:

• Hardware (computer, modem, etc.)
• Software
• Web site construction and maintenance
• Staff to maintain the Web site
• Web hosting and Internet Service Provider charges
• Communications costs, (ex. phone lines, ISDN lines, cable)
• Staff for online order processing and customer care
• Marketing of Web site
• Credit card processing fees

A brochure web site can be built for a few thousand dollars to allow contacting and orders by email. On the other hand, larger websites attracting millions of visitors each month in order to sell advertising and other products and services need to invest millions of dollars in their site.

The amount of resources you will spend will depend on the results of a well thought out business plan and the estimated return on investment. Do make sure that the Return on Investment is calculated over a long term rather than a short term time frame.

Much like choosing a name for your business, you may also want to register your own domain name or "address" on the Internet so that customers will be able to easily identify you on the web. Information on registering your domain can be found at http://www.internic.net and http://www.cira.ca

How can I secure my Web site and transactions on the Internet?
The type of security you will need for your Web site depends on what kind of use it will have. Once you determine use, you can identify the types of threats you will need to protect yourself against. For example, if you will be doing online sales using credit cards, you will need to protect the credit card information from being intercepted, both during the transaction and when it is stored on the server. Similarly, if you have confidential customer information, you will also want to ensure that this information is not accessible. It is useful to note, however, that in many instances, doing online credit card sales can be more secure than in a traditional environment, where much of the credit card fraud is caused by the people involved in the transaction, or by the theft of receipts.

There are a number of security options, from firewall software, to secure servers, to Secure Sockets Layer (SSL), SET and public key infrastructure. Your ISP and/or Web developer should be able to provide you with more information on these solutions, and whether they are right for your site. The most effective and efficient solution for small to mid-size companies may be to use a commerce server provider (CSP). CSPs lease their services to individual retailers for a fraction of the cost of buying a complete e-commerce solution.

What is a certificate authority?
A certificate authority (CA) issues and manages security credentials and public keys for message encryption and decryption. A CA will require, and authenticate, documents to verify the identity of a person or organization before issuing a digital certificate.

Often, the certificate includes the owner's public key, the expiration date of the certificate, the owners name, and other information about the public key owner.

What is cryptography?
Encryption transforms data into a form that is impossible to read without a decoder (a cryptographic key). It ensures privacy by keeping information hidden from anyone for whom it is not intended, even those who have access to the encrypted data. Decryption is the reverse of encryption; it is the transformation of encrypted data back into a readable form.

What is a digital signature?
A digital signature is a convenient and secure way of signing electronic documents. Digital signatures provide a secure form of transacting electronically. It is virtually impossible to forge or copy a digital signature. When a document is digitally signed, its integrity and authenticity can be verified, as can the identity of the signer. Digital signatures are based on mathematical theory and the use of algorithms. A digital signature is a complicated concept, but its application is relatively simple and straightforward. Your software does all the work, while you (the user) simply selects the signature option in the software. Digital signatures are particularly important if you want make the electronic transaction as binding as possible. Government legislation is currently in place to provide for the acceptance of digital signatures (and other forms of electronic signatures).

Should my Yukon business be on the Web?
Conducting business online provides an advantage in the north because we no longer have to worry about the Yukon's physical distance to larger markets or our small population.

Some questions you might ask yourself:

• Are my customers online or will they be?
• Are there untapped markets available online?
• Are there new business or revenue opportunities?
• What are my competitors' strategies?
• What are the business trends?
• What are my business strategies?
• What are my resources?

You should also define your business goals and your direct and indirect competitors.

The Internet can increase your market base, and if your marketing appeals to a wide range of customers from various geographical areas. It is now possible for an artist in Old Crow to market and sell beadwork to customers in New York.

You must also consider whether or not your business is be ready to meet growing demand from online sales and whether or not your product line can be delivered economically and conveniently.

There are some significant economic advantages to going online, such as lower rent, labour, inventory and printing costs, but keep in mind that moving your business to the Web will not fix any problems. Be careful if your brick and mortar business isn't working the way it should, going online may only give a new depth to your existing problems.

2. Regulations

Regulations that Apply to the Internet and E-Business
In general, all existing laws that apply to traditional commerce apply equally in an electronic environment (for example, laws governing business incorporation, business name registration, taxation, consumer protection, deceptive advertising, importing/exporting, product safety, product standards, criminal code, inter-provincial trade treaties, intellectual property and liability, etc.). Companies must comply with the law of any jurisdiction where it is deemed to be "carrying on business." The Yukon has legislation of its own on the following: Electronic Commerce, Electronic Contracts, Electronic Signatures, Electronic Records, Correcting online errors, Electronics shipping documents, and Electronic Evidence.

For more information on legislation governing E-Commerce in Yukon, please call (867) 667-5387 (Toll Free 1-800-661-0408 local 5387) or visit the Web site http://www.yukonecommerce.com to review the Yukon Electronic Commerce Act and the Yukon Electronic Evidence Act.

3. Privacy and Security

Is the information I put on this system safe? Can people steal my confidential company information or gain access to my credit card if I use it over the Internet?
Some businesses are waiting to go online until a secure electronic environment is assured. Solutions to privacy and security exist today. Software can be used to encrypt transactions and block unwanted messages. Your ISP and/or Web developer should be able to provide you with information on various software packages, based on your security needs.

Will my private information be at risk?
You can install software to help protect the privacy of your business and your clients. In addition, the federal government is acting to protect personal information. The Personal Information Protection and Electronic Documents Act establishes principles governing the collection, use and disclosure of personal information. In particular, it provides that business must obtain the consent of consumers to use their personal information and gives consumers access to their personal information and to simple and effective redress procedures. For an overview of the Personal Information Protection and Electronic Documents Act, see the document Protection of Personal Information - Your Responsibilities.

Compliance with the legislation is overseen by the federal Privacy Commissioner http://www.privcom.gc.ca The Commissioner's role includes receiving complaints concerning contravention of the principles, carrying out investigations and audits, and dispute resolution. Unresolved disputes regarding certain matters can be taken to the Federal Court for final resolution. The Commissioner also have extensive powers to do research and public education which is vital if consumers are to learn how to protect their privacy. The Personal Information Protection and Electronic Documents Act guarantees the right to be substantially similar to the federal law.

As of January 1, 2004, the Personal Information Protection and Electronic Documents Act covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces which have enacted legislation that is deemed to be substantially similar to the federal law.

The guide Your Privacy Responsibilities - Guide for Businesses and Organizations to Canada's Personal Information Protection and Electronic Documents Act helps businesses understand and meet their new obligations under Part 1 of the Act. It is available from the Web site of the Privacy Commissioner of Canada at http://www.privcom.gc.ca/information/guide_e.asp

NOTE: Copies of the guide may be obtained from:

The Privacy Commissioner of Canada
112 Kent Street
Ottawa, Ontario K1A 1H3
Telephone: (613) 995-8210
Toll-free: 1-800-282-1376

Online E-security and Privacy Guide
Designed to help SMEs understand e-security and privacy risks and what they can do to manage them.

Recognizing that SMEs are at different stages of e-business development, the product has been organized so that you can determine what you should be doing on the security and privacy front in relation to your level of e-business activity.

For more information, you may visit the Web site http://www.privacyguide.cebi.ca

4. Taxation

Do I need to collect GST/HST and PST if I sell things over the Internet to persons outside of my province or in another country?
In general, all existing tax rules apply equally in an electronic environment, and no new taxes have been created specifically for electronic commerce.

For specific tax-related questions, please call the Canada Revenue Agency at 1-800-959-5525, see the document Goods and Services Tax and Harmonized Sales Tax - GST/HST or visit the Web site at http://www.cra-arc.gc.ca/menu/EmenuHDC.html

5. Export Rules

Do I need an export license if I sell things over the Internet?
The application of export rules is the same in the electronic world. If you currently need an export permit to sell your product overseas, you will need one to sell it over the Internet to people in foreign countries.

The issuance of Export Permits is administered by the Export Controls Division of International Trade Canada (ITC). The Division provides assistance to exporters in determining if export permits are required. It also publishes brochures and Notices to Exporters.

For more information, please call (613) 996-2387, see the document Export Permits or visit the Web site at http://www.dfait-maeci.gc.ca/eicb/

6. Consumer Protection

Marketing practices/advertising
Under the Competition Act, it is a criminal offense to engage in certain kinds of misleading advertising and deceptive marketing practices. The Competition Act defines which marketing practices are illegal in Canada. The Act is enforced by the Competition Bureau, and is applicable in an electronic environment.

Consumers are now able to complain about misleading cross-border electronic commerce at the following Web site http://www.econsumer.gov The Competition Bureau participated in this Web site's launch, along with officials from 12 other countries.

For further information, please call 1-800-348-5358, see the document Competition Act - Misleading Advertising and Deceptive Marketing Practices or visit the Web site at http://www.competitionbureau.gc.ca/

The Canadian Code of Practice for Consumer Protection in Electronic
The Canadian Code of Practice for Consumer Protection in Electronic Commerce was endorsed by federal, provincial and territorial Ministers responsible for consumer affairs in January 2004. The Code is intended to establish benchmarks for good business practices for merchants conducting commercial activities with consumers online.

The Code contains information on the following:

• Information Provision;
• Language;
• Contract Formation and Fulfilment;
• Online Privacy;
• Security of Payment and Personal Information;
• Complaint Handling and Dispute Resolution;
• Unsolicited E-mail;
• Communications with Children.

For more information, you may visit the Web site http://cmcweb.ca/epic/internet/incmc-cmc.nsf/vwapj/EcommPrinciples2003_e.pdf/$FILE/EcommPrinciples2003_e.pdf to download the Canadian Code of Practice for Consumer Protection in Electronic Commerce in PDF format (Adobe Reader required).

7. Financial Assistance

The Business Development Bank of Canada (BDC) offers possibilities of financing for E-Business. Whatever your development stage - from initial feasibility study to implementing and integrating a fully transactional site - BDC's specialized financing may be the solution for your e-business needs.

For more information, you may visit the Web site http://www.bdc.ca

8. Training and Information

ebiz.enable
An e-business portal designed specifically to guide commercial organizations through the issues and options encountered in implementing e-business strategies.

For more information, see the document ebiz.enable or visit the Web site http://strategis.ic.gc.ca/epic/internet/inee-ef.nsf/en/home

E-Commerce First Step Program
Will help businesses determine what steps need to be taken to implement e-commerce into their business activities.

For more information, see the document E-Commerce First Step or visit the Web site http://www.studentconnections.ca/english/ecommerce.cfm

Retail Trade - Electronic Business
A site to help Canadian retailers better understand the development and evolution on online retailing and electronic commerce.

For more information, visit the Web site http://strategis.gc.ca/epic/internet/inretra-comde.nsf/en/h_qn00005e.html

Student Connection Program
This program will introduce Canadian businesses to the power of the Internet as a business tool.

For more information, see the document Student Connections or visit the Web site http://www.scp-ebb.com

SourceCAN
An entry point for any size business to the globalized e-marketplace.

For more information, see the document SourceCAN or visit the Website http://www.sourcecan.com

Task Force on E-Commerce, Industry Canada
Will keep you up to date on the latest issues facing businesses and electronic commerce and on the Government of Canada Policies.

For more information, you may visit the Web site http://e-com.ic.gc.ca

9. Business With Government

The government is moving towards delivering more of its programs and services electronically. Four examples of such programs are:

Online Federal Business Incorporation

For more information, see the document Online Federal Incorporation or visit the Web site http://strategis.gc.ca/corporations

MERX - Electronic Tendering Service

For more information, see the document MERX: Electronic Tendering Service or visit the Web site http://www.merx.com/

SRI - Supplier Registration Information

For more information, you may visit the Web site http://www.contractscanada.gc.ca/en/regist-e.htm

Trade-marks

For more information, see the document Trade-marks or visit the Web site http://cipo.gc.ca

10. Related Sites

Building Trust in the Digital Economy: Authentication
Discusses the use of cryptographic technologies to establish user's identity.
http://e-com.ic.gc.ca/epic/internet/inecic-ceac.nsf/en/h_gv00003e.html

Commumity Access Program
This program provides support for public computer access to the Information Highway via the Internet at the local community level.
http://cap.ic.gc.ca

ecommerce - guide.com
Offers a broad range of articles and links.
http://e-comm.internet.com

Canadian Bankers Association
Accepting payment by credit card usually requires a business bank (merchant) account with financial institutions that deal with each specific card. See your financial institution or the Canadian Bankers Association Web site for information on electronic commerce.
http://www.cba.ca

Econsumer.gov
This site offers information about consumer protection laws and activities in participating countries.
http://www.econsumer.gov/english/index.html

Electronic Commerce and the European Union
A large site with an introductory section on electronic commerce, an issues section and information on the G7 E-commerce initiative.
http://europa.eu.int/information_society/topics/ebusiness/ecommerce/index_en.htm

Electronic Commerce and the Organization for Economic Cooperation and Development (OECD)
A site providing documentation and background information on electronic commerce initiative in the OECD countries.
http://www.oecd.org/topic/0,2686,en_2649_37441_1_1_1_1_37441,00.html

Electronic Commerce In Canada
This site is the virtual focal point for information on Canada's Electronic Commerce Strategy, outlining the various initiatives which are helping make Canada a world leader in the adoption and use of electronic commerce.
http://www.e-com.ic.gc.ca/english/strat/index.html

Forrester Research
Even without a subscription to their research material, this site has a reference library, highlights from their reports and other e-commerce related information.
http://www.forrester.com

SME e-business Information Toolkit
An interactive information product designed to provide you with the necessary resources to make sound e-business decisions for you particular business.
http://www.strategis.ic.gc.ca/epic/internet/inee-ef.nsf/vwGeneratedInterE/Home

The Canadian Internet Registration Authority (CIRA)
The CIRA is a not for profit Canadian corporation that has the mandate to set policy for and operate the .ca domain.
http://www.cira.ca

E-Commerce E-Zines and Resources
A service of Wilson Internet, the site is a directory of online news and archives on Internet commerce.
http://www.wilsonweb.com/commerce/

E-Com Legal Guide
A service of the Baker & McKenzie law firm, this highlights key legal issues related to e-commerce.
http://www.bakerinfo.com/apec/canadaapec.htm

NUA Internet Surveys
Updated daily, the site provides statistics on web usage and commerce.
http://www.nua.net/surveys

Web Marketing Today Info Center
Archives of articles, forums, and case studies on electronic commerce and web marketing.
http://www.wilsonweb.com

Internet Retailer
The site provides web retailing statistics, strategies, and news.
http://www.internetretailer.com

Net Gain: Doing Business on the Internet
The site provides an e-commerce overview, and tips on how to acquire and integrate e-commerce tools into a business. http://strategis.ic.gc.ca/sc_indps/service/engdoc/section3.html

Shop.Org
A forum for online retailers, the site provides e-commerce forums, research, and tutorials.
http://www.shop.org

Sell It!
The site delivers news, product reviews, and step-by-step guides for online retailers.
http://sellitontheweb.com

Statistics Canada
Statistics Canada produces statistics that help Canadians better understand their country, its population, resources, economy, society and culture. The following data and reports on the use of Internet and E-business are available:

• Household Internet use in rural Canada, 1998 to 2000 http://www.statcan.ca/Daily/English/040106/d040106a.htm
• E-commerce: Household shopping on the Internet, 2002 http://www.statcan.ca/Daily/English/031211/d031211b.htm
• Electronic Commerce and Technology http://www.statcan.ca/Daily/English/030402/d030402a.htm

Step-by-Step Guide to Exporting - Networking the World: E-Business for Exporters
http://exportsource.ca/gol/exportsource/interface.nsf/engdocBasic/1.2.11.html

E-Commerce Overview Series: Plastics Industry and Plastics Processing Sector In Canada
Learn about how firms in Canada's plastics industry and plastics processing sector are using the Internet and e-commerce to improve their business processes.
http://strategis.ic.gc.ca/epic/internet/inecom-come.nsf/en/qy00061e.html?OpenDocument&source=Headlines

E-Commerce Overview Series: Agri-food Industry in Canada
Learn about how firms in Canada's agri-food industry are using the Internet and e-commerce to improve their business processes.
http://strategis.ic.gc.ca/epic/internet/inecom-come.nsf/en/qy00065e.html?OpenDocument&source=Headlines

11. Resources

Books
Clients can consult Internet-business publications and guides such as:

Cyberlaw Canada or Small Business Guide to Doing Big Business on the Internet published by Self-Counsel Press.

Canadian Internet Advantage published by Prentice Hall Canada.

Selling Online - How to Become a Successful E-Commerce Merchant in Canada by Jim Carroll and Rick Broadhead, published by CDG Books Canada Inc.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.