The Legalities of Selling Crafts on eBay

 

eBay as a platform to sell crafts

Selling crafts online should form a large portion of your business as a crafter. Ideally, you’ll spread your products across a wide range of platforms to maximise your chances of selling as much as possible. However, if you do this, you need to be careful that once a product is sold, it’s quickly removed from all other platforms it may be listed on.

EBay is a useful platform for selling crafts because it allows you to quickly and easily upload items with multiple images and long descriptions to disclose materials and size. Whilst it’s not always the number one choice for craft sellers, it’s definitely worth considering, especially in conjunction with other online marketplaces such as Etsy or Amazon Handmade.

Contact CraftCover to discuss your insurance options and requirements when selling online.

 
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Can you sell handmade crafts on eBay?

Yes, you can sell handmade crafts on eBay. The beauty of eBay is that it’s such a huge marketplace which allows the sale of almost anything, including a variety of types of art and crafts.

 

Understanding regulations when selling on eBay

Regulations when selling on eBay refer both to the rules enforced by the platform itself, as well as compliance rules for business sellers.

In terms of eBay regulations, users are required to focus on honesty, accurate listings, and compliance with consumer laws:

• Accurate listings – Each seller is obligated to describe each item fully and accurately.
• Business sellers – If selling for profit, even if just a small online craft business, you must clearly state returns policies and provide contact info. You must also register as a business.
• Performance standards – To avoid penalties, ensure you’re not selling defective products and respond to buyer queries efficiently and effectively.

Also, as a business seller, there are general regulations to follow when you sell on eBay (or any other online marketplace):

• Tax Obligations – Sellers are responsible for their taxes when selling online, and need to register for self-assessment.
• HMRC Reporting – Platforms such as eBay will share data with HMRC if you meet certain thresholds.
• Product safety – General UK product safety laws mean you must adhere to product safety rules and regulations. Familiarise yourself with these rules to ensure no legal repercussions.

 

Do you need insurance to sell crafts on eBay?

Whilst you don’t legally need insurance to sell crafts on eBay, it’s definitely important to seek product liability insurance to ensure you’re covered if your product inadvertently causes injury or damage.

EBay does offer seller protection, but this is not an adequate substitute for proper product liability insurance. As a seller, you are responsible if somebody gets hurt as a result of your product, and eBay will not protect you legally if a claim is made against you.

You should also consider public liability insurance if you have couriers visiting your workspace to fulfil deliveries.
 

Do you have to tell HMRC if you sell on eBay?

Whether or not you need to tell HMRC about your sales on eBay depends entirely on how much you earn. If your gross income from selling on eBay and other trading activities is in excess of the £1,000 trading allowance in a tax year, you will need to notify HMRC and register for self-assessment.

Following registering for self assessment, you’ll need to keep accurate records of your income and expenses, including cost of materials, postage fees, and more.
 

Preparing to sell handmade crafts on eBay

Here is an overview of what you need to prepare to sell your handmade crafts on eBay:

• High quality handmade items – The first step is to craft your items. Don’t cut corners and ensure quality materials and craftsmanship. This should lead to happy customers and positive reviews.
• Optimised listings – Use multiple high quality images which clearly showcase multiple angles of your product(s). Add detailed descriptions to inform about the materials used, and the crafting process.
• Shipping – Clearly state postage costs or consider whether you can offer free shipping. Also state a clear returns policy to build buyer trust and generate positive feedback.
• Insurance considerations – For online selling, we’d always recommend craft insurance to protect against unexpected claims due to damage caused by your products.

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