What liability protection do I need if I sell something on ebay ?

do I need to create a corporation and buy liability insurance to sell something on ebay, just in case someone has an accident with my item ? how do people selling on ebay protect themselves if their product harms someone by accident ?

Message 1 of 2
latest reply
1 REPLY 1

What liability protection do I need if I sell something on ebay ?

If this concerns you, you are not ready for the rough and tumble of eBay selling.

And don't plan any garage sales either.

Very basically, do keep the garage sale picture in mind.

If you are selling items that may have had a product recall (Corningware coffeepots come to mind, as well as many baby car seats) eBay will simply prevent the product from being listed. Probably.

If you describe the item carefully and use your own pictures, most of your problems are already solved.

KNOW WHAT YOU SELL: SELL WHAT YOU KNOW.

Don't dropship. Which means, don't sell anything you don't have in your own hands.

Ship promptly.

Write your listings in a friendly way, but don't over communicate.

Don't copy other sellers terms of sale. The really complicated ones reflect either paranoia or hostility. KISS.

Don't ship overseas by surface.

 

If you are selling new products, make sure the manufacturer's warranty form is included with the product. Most products, even if you buy them at FutureShop , are actually covered by the manufacturer's insurance.

 

It is best to do some buying before moving into selling. This gives you two protections. First you can see what good sellers do. With any luck you won't run into any bad sellers, although that can be educational too.

And you build up feedback, which is a method of protecting against the worst scamming bidders.

You don't need to be a corporation. You probably don't even need a municipal business license, which basically entitles you to pay higher taxes.

Message 2 of 2
latest reply