The Small Business Commissioner has published an ‘Online Marketplace Guide’ aimed at providing advice on the use of online marketplaces and payment providers.

The guide explains that the United Kingdom has the most developed e-commerce market in Europe, whilst its Fintech sector accounts for 11% of the global industry. This combination means that small businesses have many of the key ingredients to start and grow, but nonetheless face challenges from some of the practices of online marketplaces and payment providers, particularly in relation to funds being held or frozen.

With the help of a number of case studies, the guide seeks to advise small businesses on what they should consider when selecting providers, concentrating on matters such as variations in terms and conditions, disputes policies, and fees and charges. It also examines why online marketplaces or payment providers may restrict accounts or withhold funds, and what to do should this occur.

The guide is also accompanied by a ‘Small Business Pledge’ signed by a number of major online marketplaces in which they commit to, among other things: inform small businesses promptly should their accounts be reserved or funds withheld, providing reasons and details as to the steps needed to be taken to release them; provide clear terms and conditions in relation to withholding funds; enable small businesses to appeal decisions; and not deliberately target sellers with working capital solutions when funds are being withheld in an attempt to profit.

Commenting on the guide, the Small Business Commissioner, Emma Jones, said, “this guidance, along with the pledge made by these companies, will help to ensure small business know their rights, have the support they need, understand what factors influence the withholding of funds and help them make the most of the opportunity going digital brings. This is also just the start. We are working with more companies that we hope will be able to sign in due course so that we can promote this guidance and reach the widest audience of SMEs”.

To read the guide in full, click here.