How to sell second hand online

Whether you want to off-load clutter, make some cash, or are committed to the circular economy, the abundance of selling websites and apps certainly gives plenty of options when it comes to selling your stuff.

Second-hand online buying and selling has seen an explosion in recent years. But how do you choose where to market your wares? Our advice takes you through some of the most important things to consider, including protecting yourself from scams.

To find out how new challenger marketplaces such as Depop and Vinted compare against established sites such as Gumtree and eBay in our customer survey, visit the best and worst places to shop second hand online

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Before you sell something online

• Write a detailed description. Make sure you are not mis-representing the item you are selling. If it has parts missing, make sure you make this clear, if it’s used, point out its defects or signs of wear and tear. 
• Research the right priceto sell at. Look for similar products rather than deciding on what you think it’s worth.
• Consider your market. If you are selling very high value items, such as designer clothing, it may be more appropriate to use platforms or selling sites that have authentication services such as HEWI or Vestiaire Collective. 
• Don't use stock images. Most platforms will tell you not to use stock images as these will be copyrighted. Additionally, stock images won’t show the condition of the actual item you are selling so use your own. Using lots of photos is a good idea – include a full view, close ups of any defects, labels, true colours. Clear photos will also help you fight a claim against you if a buyer claims there is a defect that wasn’t there when you sold it.
• Careful with postage. If the platform requires you set the postage, be careful you are setting it as accurately as you can. Too cheap could obviously leave you out of pocket and too expensive will put buyers off.
• Block dodgy buyers. If you’ve sold to buyers before that have been difficult, unreasonable or acted fraudulently, some platforms will allow you to block them from buying your listings.
• Pay attention to the platform’s T&Cs. If the buyer protection if offers means an item must be sent within a certain number of days or sent in a certain way, make sure you are prepared for this.
• Is there any seller protection? Some sites offer seller protection as well as buyer protection.

Making a second hand sale online

• Keep payment within the marketplace. Don’t ask for or agree to payment outside of the marketplace if there are secure options within the app available. If there is no option, use PayPal or another secure method for online payment. 
• Keep communication within the marketplace. As far as it is possible use the marketplace to talk to potential buyers. Not doing so could invalidate any protections in place.
• Send to the address on the invoice. Agreeing to send to an address other than the one that is given on the invoice, or that is given to you by the marketplace, can invalidate any protection you might have with the marketplace. If the buyer is adamant they want the item sent to a different address, it’s advised you cancel the purchase and ask them to rebuy after updating their delivery address.
• Take photographs of your items packaged up.
• Send items tracked. Make sure you keep all tracking details so you have proof if a buyer claims something hasn’t arrived. Insure high value packages.

If there’s a problem with your sale

• Respond to issues quickly. Not doing so could invalidate any seller protection in place.
• Don't offer refunds outside the platform. If payment was originally using the platform, then refunds or partial refunds need to be processed through the marketplace too.
• Provide evidence. If an item is claimed not to have arrived, the platform will want evidence from the shipping company. If the item was collected from you, you’ll also need evidence. eBay suggests you print a copy of the eBay order details and get the buyer to sign it at the time of collection or use the eBay app – the seller can scan the buyer’s QR code or enter a buyer’s pick up code. If the item is claimed to be not as described, detailed listings photos will help you prove otherwise.

What is seller protection?

Seller protection can protect you if a buyer claims an item hasn’t arrived when you have proof that it has, or if they say they never ordered the item. It may also protect you if a buyer falsely says something is not as you described it.

Depop and eBay offer sellers protection for most sales, provided certain conditions are met.

You can also gain seller protection when you use PayPal for receiving payment.

Read our advice guide: am I protected when selling with PayPal?

The side hustle tax

You may be concerned about selling your stuff after hearing news earlier this year of HRMC ‘s so-called ‘side hustle’ tax. 

This isn’t actually a new tax, but simply new requirements on online platforms to collect and report information about people making significant money through their platforms. 

You can earn up to £1,000 a year selling goods online. After this you must register as self-employed and file a self-assessment tax return. 

However, the key here is that those earnings must be profit. If you are selling your own unwanted goods such as old clothes, you are likely to be making a loss on what you originally paid for them, so won’t owe tax on those sales. 

You can check whether you have to declare your sales on tax.service.gov.uk using its additional income form.