Net profits

Posted on 7 May 2009 at 15:51

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You'll obviously need to put in considerably more effort to build a successful business, but the point is that using a ready-to-roll package can free you from the sometimes restrictive terms and conditions of the online marketplaces. Then all you need to do is concentrate on trading.

Legal obligations

With all this talk of selling and making money, it's easy to overlook the legal aspects of selling items. The laws that relate to private sellers and professional traders are different, but they apply whether you're selling at a car-boot sale or on the internet. However, selling online holds further ramifications for traders.

If you're a private seller flogging the odd item you no longer want, you have it pretty easy. All you need to do is ensure that the item is described accurately. This includes describing any known faults. As a private seller, it's not illegal to sell faulty items, but you must let the buyer know about any problems before the sale. The only legal recourse a buyer has subsequently is if the goods you sold do not match the description you gave. We'll leave the moral obligations to you.

The laws relating to traders, on the other hand, are long, complex and beyond the scope of this feature. In essence, if you are selling on a commercial basis (that is, regularly handling items that you have bought specifically for the intention of selling on for a profit) then you are bound by the Sale of Goods Act. This states that goods must conform to contract, which means that they must be as described, fit for purpose and of satisfactory quality.

If you're trading online, you'll also need to adhere to the Distance Selling Regulations. This is something of a marathon read, but its most onerous requirement is that buyers must be given a 'cooling off' period of seven working days during which they can return most goods for a refund without giving a reason.

For more information on your rights and responsibilities as a trader, visit the Department for Business, Enterprise and Regulatory Reform (BERR) website at www.berr.gov.uk.

Get selling

We hope we've demonstrated that selling online needn't be difficult; just sign up for an eBay or Amazon Marketplace account and you're ready to sell casually. As we've explained, in most cases eBay is the best solution for the needs of private sellers. Amazon's service is just too expensive for listing the kind of low-value consumer items that sell well on that site.

As for would-be traders, the internet is undoubtedly the world's biggest marketplace. The tools to help you out are varied and reasonably priced. Whether you can make a go of online selling as a business will be entirely down to your commercial savvy.

Author: Scott Colvey