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The current business era is all data-driven and online-focused. With too many businesses crowding the e-commerce space online disputes are bound to occur. But the traditional court system is unable to provide timely justice as there are tons of cases already lined up.

ODR or Online Dispute Resolution for business is a visionary approach to settle down disputes online without burdening the courts. This is a breath of fresh air for those entrepreneurs who were struggling to get court hearings. According to legal firms, ODR has successfully enhanced the ease of doing business.

It initiates and carries forward the disputed subjects in cyberspace through discussions and interventions. It deals with a variety of disputes including commercial credit score issues and provides effective B2B solutions.  This blog throws light on some of the important aspects of Online Dispute Resolution for business in detail.

Online dispute resolution types

There are different ways such as mediation, arbitration, and negotiation in which disputes are resolved online between rival parties.


The process of arbitration is similar to a court trial but here strict governing laws do not apply and is conducted in a flexible setup. Both the rival parties approach an arbitrator who makes a decision from a neutral viewpoint. This is done by carefully examining the arguments made. It’s less complicated and quite informal which helps to prevail the much-needed justice.


Mediation is a non-binding method of settling online disputes. In this, the mediator is a neutral individual who acts as a facilitator in the conversations of conflicting parties. It takes place via online mediums and allows them to present evidence, reasonable arguments, and possible solutions. Here the main motive is to suggest settlement terms after the consent is made.


In negotiations, businesses can have one on one conversations to reach a conclusion. Both of them can make offers and counteroffers in mutual agreement. As this is a new way of Online Dispute Resolution for business, generally arbitration and mediation are mostly preferred. Commercial credit scores are used to research more about the credit flow of both parties. Doing an indepth study on the rival helps present deals that are mutually beneficial.

What are the tools used for Online Dispute Resolution for business?

When terms of business are not discussed properly it gives way to confusion and conflicts. In these situations, some automated software or tools are used to find the middle path. Few financial credit bureaus also help streamline this process and give details of credit dealings of both conflicting parties. Let’s look into different automated software separately.

Blind bidding

In this system, both the parties in conflict are asked to enter the amount which they desire. If the amount is acceptable to both the business owners or is almost overlapping, then the deal materializes well. If the expected amount does not match, then the deal has to be called off.

Automated negotiation system

As the name suggests this software operates itself to check all the possible outcomes of the deal. It further picks up the best option to resolve the dispute. This way one can reach a win-win situation without running after the lawyers and professionals.

Benefits of Online Dispute Resolution for business

This process is far more flexible than the traditional legal system. Whether it’s about the timing or availability, the online dispute mechanism has a lot to offer.

The conventional legal process of litigation requires you to spend a huge sum but online dispute resolution is quite affordable and saves entrepreneurs a great deal of money that they can invest in business growth.

In this system, there are no strict laws binding on the disputants. In fact, they are given a level playing field by allowing participation in the process. Entrepreneurs can raise their demands and put forward their viewpoints.