Insurances for reselling

[Dazza]

Hi,

Quick question, if you are reselling on Amazon or ebay, just basic online or retail arbitrage (buy from charity shop sell for profit for example), do you need any kind insurance just in case something happens with something you have sold - not lost with delivery but something happens wihh it when the person at the other end gets it? Some kind of liability insurance maybe?

Cheers

 

[Andrew]

Hi in short yes - it's eminently sensible to have product liability insurance - especially if you're selling electricals!

 

[Jon]

Hi in short yes - it's eminently sensible to have product liability insurance - especially if you're selling electricals!

So how does that all work with someone where you store your stock away from your house?

They must have quite a bit of outgoing paying for a 'lock up/garage/office' which probably means they need to make more than they would if they were just selling the stuff in their 3rd bedroom.

You REALLY need to make sure you scale carefully I think with reselling as if you go too hard, too fast or get dependant on one particular product range to much it could all fall apart!!!

 

[Andrew]

So how does that all work with someone where you store your stock away from your house?

They must have quite a bit of outgoing paying for a 'lock up/garage/office' which probably means they need to make more than they would if they were just selling the stuff in their 3rd bedroom.

You REALLY need to make sure you scale carefully I think with reselling as if you go too hard, too fast or get dependant on one particular product range to much it could all fall apart!!!

Home insurance doesn't cover you for having stock in your house anyway. So if you want loss cover for your stock you still have to have separate insurance. Doesn't make any difference in terms of cost whether the stock is stored at home or if it's stored away from home.

To be honest the only secret to reselling is the more you've got listed the more you'll sell. Eventually you'' reach that tipping point where you have to too much stock in your house and at that point it's worth thinking about investing in other storage options