With a whopping 132 million users, and 18 million sellers, eBay continues to be one of the most popular selling platforms.
Second only to Amazon, it's one of the most visited marketplaces in the world. Selling your products on eBay is a pretty wise idea, then.
But make sure you're protecting your business. Here's why eBay sellers' insurance should be top of your shopping list.
Sold on the idea of selling
There are plenty of ways for online retailers to get their names on the map these days. Apps, social media, selling platforms, pop-up shops...the list goes on.
And that's the fun bit, building your brand and seeing your products make customers happy.
But you can't just stop there. However you choose to sell your product, it's really important to think about how you protect yourself and your business...
After all, your responsibilities (and problems) don't disappear just because you haven't got a physical store to look after.
New market, old risks
Clearly, the e-commerce market is ripe for picking, which begs the question: why get eBay sellers' insurance?
It's easy to think that without a bricks-and-mortar shop, you'll face fewer risks. But that's not necessarily true.
You might not have to worry about paying the rent or stopping petty thieves, but there are lots of other things to think about...
Like stock that does harm, stock that gets trashed or disappears, cyber attacks, staff complaints, or injuries to someone your business comes into contact with.
Do you need eBay sellers' insurance?
eBay has a simple sellers' policy and doesn’t require its sellers to have insurance. But that doesn't mean you shouldn't. If anything goes wrong, eBay, and any other selling platforms you use, aren't going to bail you out.
eBay is essentially a middleman. The sale is between you and the customer. Therefore, if they make a claim, it'll be your neck on the line.
Business insurance isn't just for the big players. If you’re just getting started or operating under slim profit margins, a small hiccup could derail your business. So getting some form of protection is arguably even more important.
More often than not, a comprehensive eBay sellers' business insurance policy includes:
- Product liability insurance to cover any accusations of negligence should the goods you sell damage a customer’s property, injure them, or make them ill.
- Public liability insurance to cover damages for any third parties who are injured while coming into contact with your business (couriers, suppliers, market stall browsers etc)
- Employers’ liability insurance to cover the people who work with or for you, including any employees, volunteers, or apprentices, for work-related illnesses and injuries.
- Stock and property insurance to cover your stock and equipment in case it gets lost, damaged, or stolen.
- Business interruption insurance to cover your lost income if a fire, flood, or other unexpected event (though hopefully not all three) stops you from trading from your usual business premises.
You might want to add cyber insurance to protect your business from digital disasters, too.
Risk tips for eBay sellers
While eBay sellers' insurance covers a lot, your best scenario is obviously one where you don’t need to claim on your policy at all.
To reduce your risks of running into a claim, try these on for size:
- Check the safety of your products. How well wrapped up and sealed are your products when you send them? Are any loose parts individually bubble-wrapped? Do any items present a choking hazard and if so, are they labelled as such? Are any sharp edges encased in foam protectors to prevent injury?
- Take steps to safeguard your stock. Where do you keep your stock? If the answer is a garage, shed, or exterior building, is it waterproofed and safely locked up at night? If you have an alarm, is the service agreement still in date? If you have to leave a delivery in the boot of your car while you run an errand, make sure it’s hidden out of sight, with the parcel shelf in place.
- Train your staff in safety procedures. Have they had basic first-aid training? Do they have the right safety equipment? Is their workspace free from loose cables and wires?
- Protect your business premises. Are all electrical items and wires checked regularly? Is your business based in a flood-risk area? If so, have you signed up for local flood watch warnings?
- Clear the path for the postman. Have you removed all trip hazards/dangerous dogs from your front garden? Your time-pressed posties and couriers will thank you for it. And you’ll avoid a claim for injury or damage.
An easy sell?
Hopefully, you have enough info now on how an online retailers' insurance policy can protect your business.
But, if you do need any more advice or guidance on eBay sellers' insurance, just call us on 0345 222 5391. We're always happy to answer any questions.
Image used under license from Shutterstock.
managing riskonline retailers