Do I need business insurance to sell on Etsy? Put plainly, no. You are not legally required to take out any form of insurance before selling your handmade crafts on Etsy. That being said, it is generally a good idea to at least consider purchasing online retailer insurance before selling on this platform.
Popular crafting marketplaces, such as Etsy, Folksy, Ebay and Not On The High Street, don't make it compulsory for you to have insurance in order to sell products on their websites. However, it is important to have appropriate craft insurance in place to best protect your business, your goods and your sales.
Etsy doesn't require sellers to have a business licence to sell on Etsy. However, when selling on Etsy you're required to follow any laws that apply to you as a small business selling online.
Product liability insurance is important for anyone who sells products, whether it be online or over the counter, because the seller is the first point of call for a customer if something goes wrong, and is therefore liable to be the subject of a claim.
Etsy is a unique marketplace. Buyers come here to purchase items that they might not find anywhere else. Everything listed for sale on Etsy must be handmade, vintage, or a craft supply. Handmade items are items that are made and/or designed by you, the seller.
While Etsy Standard is a default plan and is actually free, Etsy Plus costs $10 a month. Etsy Plus membership gives you access to lots of benefits – discounts on domain customization, packaging and promotional materials, listing and ads credits, restock alert feature, etc.
Do I need business insurance to sell on Etsy? Put plainly, no. You are not legally required to take out any form of insurance before selling your handmade crafts on Etsy. That being said, it is generally a good idea to at least consider purchasing online retailer insurance before selling on this platform.
As touched on above, you do not legally require public and product liability insurance to sell at a craft stall. However, it is a good idea. If, for example, a member of the public trips over your stall and becomes injured, this cover will protect you.
Here's what you need to cover the basics: Products liability insurance protects you if something you sell harms someone or damages something. Say a plug-in device causes a house fire or a faulty stool collapses and injures a customer. Pays your legal costs and any compensation you're liable for.
From January 1, HMRC has instructed popular side hustle platforms - including Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office.
Do you need to register with HMRC to sell on Etsy?
When you are ready to start your Etsy business in the UK, you need to register with HMRC. If you plan to make selling online a large enterprise, you might consider forming a limited company.
How much can you sell on Etsy before paying tax UK?
If you're employed and trade on Etsy as a side business, you'll only need to pay tax if your total income from sales exceeds the £1,000 trading allowance. Once your earnings exceed that allowance, you'll need to complete a self-assessment as you'll be viewed as both employed and self-employed.
The annual premium for £5,000,000 Public and Products Liability is £59.00. To include Employers' Liability, the premium will be £87.00. If you would like higher limits of indemnity for Public and Products Liability (£10,000,000) prices increase to £70.50 and £98.50 (with Employers' Liability).
If you're running a craft fair as a market trader, you're also working a lot with the public – and accidents can happen. Public liability insurance can help protect your business in case of third-party injury or damage, maybe caused by a trip or slip over your stall, or injury caused by one of your products.
There are some types of cover that all crafters should have – Public and Products Liability insurance is definitely one and, if you employ anyone, the law says you have to have Employers Liability cover too.
Do I need to register my craft business with HMRC?
As a new business owner, you'll also need to deal with HMRC. It's important that you register as self-employed so you can pay your taxes. Then you'll need to keep up with tax deadlines for your business, filing your tax return and paying your bill on time (including corporation tax if you establish a limited company).
Can I sell products without registering as a company UK?
Every new business in the United Kingdom is subject to mandatory registration with HMRC. In fact, registering a business means informing the tax office that your business exists and paying all the necessary taxes provided by UK law.
Etsy's marketplace includes handmade items, vintage items, and craft supplies. Reselling is only allowed in the vintage and craft supplies categories. Everything listed in our Handmade category must be made or designed by you, the seller. Reselling is not allowed in Handmade.
Finally, you must decide on a shop name (as long as it complies with Etsy's naming conventions). Once you've typed it in, click “save and continue” again. Note: While Etsy doesn't require sellers to have a business license, you must follow UK laws that apply to small businesses selling items online.
Coverage is on a package-by-package basis. Inbound shipments are not covered. Coverage is for sales made on Etsy.com, only, and covers loss, damage, or shortage to the original merchandise shipped plus the original shipping cost (if declared), only.
Does Etsy require seller insurance? The short answer is no. Etsy doesn't require you to have insurance to sell or operate a store, so you might think you're off the hook.
Etsy's transaction fee is 6.5% of the total sale price, including shipping and gift-wrap charges. That means if you sell an item for $100, you'll be charged a transaction fee of $6.50.
Etsy collects a 6.5% transaction fee in your indicated listing currency for every sale you make. Once a customer purchases from your store, the transaction fee will automatically process for Etsy Payments users. Etsy's transaction fees are a percentage of the total cost of the product, shipping, and gift wrapping.
Is it profitable to sell on Etsy? YES, ABSOLUTELY. If selling on Etsy wasn't profitable, there wouldn't be almost 8 million active sellers on Etsy. But when it comes to selling on Etsy, it won't be very profitable if you're lazy.
