Selling goods through an online marketplace is a great way to create a profitable online business without going out on your own. When you sell through an online marketplace, you are linking your products to an already existing market with a vast number of potential customers. However, when you sell through an online marketplace, it is essential to know the website\u2019s terms and conditions. Otherwise, you may be liable for breaching consumer, fair trading, or privacy laws. This article will outline some terms and conditions you should understand when selling through an online marketplace, including:<\/p>\n\n\n\n
An online marketplace will have various fees<\/a> set out in its terms and conditions, which you will need to understand. There are two main kinds of fees they may charge, including a: <\/p>\n\n\n\n A listing fee is typically charged when someone lists an item for sale. If you sell items online through an online marketplace, you will likely be charged this fee. Typically, these fees are small, usually a few cents. Often you only are charged a listing fee once the item has been sold. <\/p>\n\n\n\n Additionally, you will likely be charged a selling fee if you successfully sell an item through an online marketplace. Generally, this is a percentage of the cost of the goods, so if you are selling more expensive items, you will likely be charged a higher selling fee. <\/p>\n\n\n\n There are a few different ways to be charged a selling fee. In the case of some online marketplaces, like TradeMe, you have to upload credit to your seller’s account, and they deduct the selling fee from your account with every successful sale. <\/p>\n\n\n\n If you are in trade and mislead consumers or make unsubstantiated claims about your products, you may be in breach of the Fair Trading Act<\/em><\/a>. This Act forbids anyone in trade from:<\/p>\n\n\n\n To be ‘in trade,’ you must regularly engage in selling goods for commercial purposes.<\/p>\n\n\n\n There are several penalties that a business can face if they breach the Fair Trading Act<\/em>. Likewise, the online marketplace may also be liable if you breach the Act. However, most marketplaces will write into their terms and conditions that they are not responsible for any breaches of the Fair Trading Act <\/em>that occur on their marketplace.\u00a0<\/p>\n\n\n\n Therefore, you should be aware of these requirements when making product listings online through a website. Otherwise, you may face serious legal penalties, including a fine of $200,000 for individuals and $600,000 for companies.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nFair Trading Act Provisions<\/h2>\n\n\n\n