Reselling has become a popular and convenient way to make money in the UK, especially with the rise of online marketplaces. Whether you’re flipping rare collectables, clothes, or electronics, the concept is simple: buy low, sell high.
Did you know? The renting and reselling industry is worth almost £7 billion to UK economy? In recent years, reselling has become the cool, go-to side hustle for many. But oftentimes, you might find yourself being puzzled by the question: Is reselling illegal in the UK?
Well, to ease your worries, let’s start with a simple answer: Reselling is absolutely legal in the UK!
While reselling itself is not illegal, there are some rules and regulations that must be followed. This rings particularly true when it comes to taxes, counterfeit items, and trading guidelines.
If you want to learn everything there is to reselling in the UK, you’ve landed in the right place. This comprehensive guide explores the legalities, regulations, and best practices for reselling in the UK, ensuring that you stay on the right side of the law while running a successful reselling business.
Key Takeaways:
- Reselling is not illegal, but there are certain rules and laws you have to follow.
- You can’t resell everything. Selling certain items is illegal
- If your reselling income exceeds a certain limit, you must register as a business
- You will also have to declare your reselling income and pay taxes
- Reselling comes with some ethical considerations which you’ll have to be mindful of
- There are several ways to boost your reselling business and make more sales
- You can cross-list on multiple platforms to gain more exposure
UK Laws on Reselling
Before starting any kind of venture, it’s always a good idea to familiarise yourself with the rules and regulations surrounding it. The same principle applies to reselling in the UK.
While we know that it’s not inherently illegal to resell items in the UK, you still need to tread carefully.
There are certain regulations and practices you should follow to ensure you remain compliant with the law. Let’s take a look at some important things to be mindful of:
Can You Resell Items for a Higher Price?
One of the biggest concerns for new resellers is whether they can legally sell items at a higher price than they were originally bought for.
In the UK, price markups are not illegal. You can resell items for a profit as long as you’re:
- Not engaging in fraudulent activity
- Violating any terms of service of the platforms you're using
- Selling illegal or harmful items.
Consumer Rights Act 2015
The UK has specific laws that govern reselling. Most fall primarily under the Consumer Rights Act 2015. Reselling is generally legal, but sellers must adhere to specific guidelines depending on the items and sales volume.
This law protects consumers by ensuring that items sold are:
- Satisfactory quality
- Fit for purpose
- As described.
As a reseller, you must make sure the products you sell adhere to these standards.
The rules can also change based on your reselling behaviour and volume. Here are a few instances:
Reselling New vs. Second-hand Goods: There’s no legal restriction on selling new or second-hand items. Remember to describe the condition of the items you’re selling accurately.
Trading vs. Casual Reselling: If you’re looking to turn your reselling venture into a small business (for example, you're constantly buying stock to sell at a profit), you may be classed as a trader.
Traders need to follow stricter rules. Being classed as a trader has tax implications and requires you to register as a business formally.
Reselling and Taxes: What You Need to Know
So, you just kicked off your reselling adventure, and things are going well. Congratulations! Once you start making a profit from reselling regularly, you may be required to declare your income to HMRC and pay taxes. Even small-scale sellers should be aware of tax thresholds to avoid getting into trouble later on.
If your reselling business earns over £85,000 per year, you must register for VAT. This means charging VAT on your sales and paying it to HMRC. Even if you earn less than the VAT threshold, you still need to report your income and file taxes.
Here are some important things you’ll have to do:
- Self-Assessment: If you earn money from reselling, you need to file a self-assessment tax return with HMRC. To avoid any tax issues, it’s essential to keep accurate records of your sales, purchases, and business expenses.
- Income Declaration: HMRC allows a £1,000 tax-free trading allowance, but anything beyond this requires declaration. Even if you resell items occasionally, any profit made beyond the £1,000 limit must be declared as part of your income. Failing to do so could result in penalties from HMRC.
Did you know? Vendoo offers a comprehensive inventory management system that has many tools and features to make tax season simple for resellers! To learn more, check out What Resellers Need to Know About the Side Hustle Tax.
Selling Second-Hand Items: What is Legal?
While reselling is legal in the UK, it’s important to remember that you can’t just sell anything and everything you come across. In general, second-hand items are legal to sell as long as they:
- Are lawfully obtained
- In good condition
- Meet safety standards.
To make sure you adhere to the law, there are certain legalities you should be aware of.
Let’s break down what you can and can’t resell in the UK:
What You Can Legally Sell:
- Clothing
- Vintage and designer wear.
- Home Electronics
- Phones, laptops, and other gadgets
- Books
- DVDs and Games
- Household Items
- Furniture
- Kitchenware
- Home Decor
What You CAN NOT Sell:
- Counterfeit goods or fake designer items
- Pirated media
- Stolen items:
- Alcohol
- Tobacco products
- Prescription drugs
- Firearms and ammunition
- Endangered species products
- Knives and offensive weapons
- Lottery tickets
The Grey Areas of Reselling
Reselling things isn’t awlays a walk in the park. There are some grey areas you need to be wary of. After all, nobody wants to get into trouble with the law, especially for something as small as reselling things.
While navigating grey areas can be tricky, it’s good to have a general idea of what you should keep an eye out for. Here are some important points:
Compliance with Safety Standards
Some second-hand items can pose safety risks (toys, children's products, electronics). Everything you sell must comply with safety regulations. This includes making sure items are not faulty and are in working condition.
For example:
- Electrical Items: Test and make sure they’re safe before selling. You might have to include safety instructions or manuals, especially for complex appliances.
- Children’s Toys: Toys should be compliant with safety standards to ensure they are safe for use.
Intellectual Property and Trademark Laws
If you’re selling branded second-hand items, they must be genuine. Selling counterfeit goods is illegal and has severe penalties.
For example:
- Designer Handbags: All designer items should be authentic and not fake copies. Selling counterfeit goods breaches intellectual property law.
- Licensed Products: Items such as branded merchandise should be lawfully purchased and verified before reselling.
Selling Stolen or Fraudulent Goods
Selling stolen items is absolutely illegal. Resellers must ensure they have legally obtained the items they sell. If you unknowingly buy stolen goods, you can still face legal consequences. Always verify the source of your products.
Copyright and Intellectual Property Laws
One of the biggest grey areas in reselling is intellectual property. For example, if you’re reselling things like designer clothes or tech gadgets, you have to be wary of copyright and trademark laws.
- Counterfeit Items: Selling counterfeit goods is illegal. Even if you accidentally sell fake branded items, you could face serious legal consequences. Always make sure that the items you’re listing are authentic.
- Unauthorised Reselling: Certain brands restrict reselling. This happens the most with limited-edition products. Make sure you know the terms and conditions when buying directly from brands or retailers.
Ethical Considerations in Reselling
If you are a reseller in the UK, you’ll have to keep ethics in mind to ensure your practices are both legal and responsible. Here are some key ethical considerations to be mindful of:
1. Price Gouging
Selling items at unreasonably high prices, especially during times when there are shortages, can be seen as unethical. This rings particularly true if it involves essential items like medical supplies or food.
Tip: Avoid raising prices unreasonably during high-demand periods, especially for essential items.
2. Authenticity
Selling counterfeit goods or misrepresenting an item as authentic when it isn’t is both unethical and illegal in the UK.
Tip: Always verify the authenticity of designer or branded items before reselling them.
3. Transparency
Always be fully transparent about the items you’re selling. Misleading buyers about defects or wear and tear can damage your reputation and lead to disputes.
Tip: Provide accurate descriptions and clear photos of your items. They should show any major imperfections or damage.
4. Fair Sourcing
It’s important to source the things you’re reselling ethically. Try to ensure that the products you purchase aren't acquired through unfair practices. Steer clear of sources that exploit vulnerable individuals or communities.
Tip: Consider how and where you’re sourcing your products and whether the original sellers are fairly compensated.
Popular Platforms for Reselling in the UK
The UK has a lot of online marketplaces where you can sell second-hand or new items. No matter what you’re selling, you’ll definitely find a site that tickles your fancy.
Here are some of the best platforms to consider:
1. eBay
eBay is one of the largest global platforms for reselling. It has an auction-style format that will get you the best buyers for your products. You can try eBay’s auction feature for rare or high-demand items to maximise your profits.
Great for: Selling diverse types of items like electronics, collectables, and clothing.
2. Depop
Depop is a popular app among younger generations. It has a special focus on fashion, particularly streetwear and vintage items. You can use high-quality photos and styling to appeal to Depop's fashion-forward audience.
Great for: Selling second-hand and vintage clothing, as well as unique fashion items.
3. Vinted
Vinted is a great place for decluttering your wardrobe. You can sell clothing and accessories with no seller fees. It's growing fast in the UK, especially for casual resellers. What's more? You can use Vinted’s bump feature to get more eyes on your listings!
Great for: Selling clothes, shoes, and accessories.
4. Facebook Marketplace
Facebook Marketplace offers a great local selling option where you can list items for free. You can also negotiate with buyers directly. Stay active in local buying and selling groups to reach a larger audience.
Great for: Large or bulky items like furniture or appliances.
5. Gumtree
Gumtree is a classifieds platform where users can sell almost anything, from used cars to household goods. It’s popular in the UK for local transactions. Gumtree transactions are often made face-to-face.
Great for: Local sales of a wide variety of items, including home goods and furniture.
6. Vestiaire Collective
Vestiaire Collective is a premium marketplace for luxury fashion and designer items. If you have some premium designer pieces, this is the best platform to sell them at. Over here, buyers can find high-end clothes and accessories.
Great for: Reselling luxury and designer fashion items.
7. Etsy
Known for handmade and vintage items, Etsy is one of the world’s biggest reselling platforms. It has a vast selection of customisable and personalised goodies.
Great for: Vintage collectables, handmade crafts, and unique décor items.
Looking for a guide on how to start your own reselling adventure? You might enjoy How to Become a Clothing Reseller: A Guide for UK Sellers
How to Get the Most Out of Reselling
When done right, reselling can be a very fun, rewarding, and profitable gig. If you want to elevate your reselling experience, you’ll love our expert tips.
Check them out below:
1. Cross-Listing for Maximum Exposure
One of the best ways to increase sales is by cross-listing your items on multiple platforms. Think eBay, Depop, and Vinted.
Cross-listing helps you reach a wider audience and improve your chances of making a sale.
The best part? It’s usually very quick and needs minimal effort. Tools like Vendoo make it easy to cross-list your products across different marketplaces. This helps you save both your time and energy!
2. Research Market Trends
Stay in the loop about current market trends. Whether you’re reselling vintage clothing, electronics, or rare collectibles, it’s important to know what’s in demand. This will help you make better buying and selling decisions.
Here are some tips to help you get started:
- Use Google Trends to identify popular items.
- Follow industry news
- Follow relevant hashtags on Twitter to know about trending products and categories.
3. Optimise Your Listings
Simply put, listing optimisation can make or break a sale. Oftentimes, buyers don’t even look at your listing because it simply isn’t optimised.
High-quality images, detailed descriptions, and accurate information can make a huge difference in wowing your buyers.
Be sure to:
- Highlight your item’s unique features.
- Upload engaging, grammatically correct and typo-free descriptions.
- Include clear photos from multiple angles.
- Price your items fairly
4. Bumping and Promotions
On platforms like Vinted, you can bump your listings. This boosts their visibility. While this doesn’t guarantee a sale, seriously boosts the chances of getting your items in front of more eyes. Tools like Vendoo also help you manage your listings across platforms thanks to a host of promotional features.
You can also try other promotional ideas like:
- BOGO offers
- Bundle discounts
- Freebies for bigger orders
5. Customer Service
Want to be successful in the long term? Focus on customer service! Doing so can set you apart from other sellers and keep your customers delighted. It will also help you build a good reputation and win repeat business and positive reviews. When customers know you care about them, they keep coming back for more.
Try to:
- Respond to inquiries promptly
- offer helpful information
- ensure timely shipping
- Check in for feedback after delivery
Looking to supercharge your online reselling business? Check out 14 Powerful E-Commerce Tools to Drive Growth
Tips for Staying Legal as a UK Reseller
Now that you know that reselling is legal in the UK, here are some best practices to ensure that you’re compliant with the law and running your reselling business ethically:
- Accurate Product Descriptions: Always provide clear and accurate descriptions of what you're selling. This will protect you from running into trouble with the Consumer Rights Act.
- Verify Authenticity: Make sure you’re selling authentic stuff. This is important, especially when dealing with high-end or branded goods. Selling counterfeit products can land you in serious legal trouble.
- Keep Records: Maintain detailed records of all your transactions. Hold on to purchase receipts, sales records, and expenses. This will help with filing taxes and ensuring compliance with VAT requirements.
Take Your Reselling to the Next Level with Vendoo
Reselling in the UK can be a profitable and exciting venture! However, for your long-term success, it’s essential to navigate the legal and ethical landscape carefully.
Stay informed about what you can and can’t resell, and always strive for ethical practices. With the right approach, reselling can be both a lucrative and fulfilling side hustle.
By understanding the rules, sourcing items wisely, and using platforms like Vendoo to cross-list across multiple marketplaces, you can maximise your success in no time!
Did you know that you can use cross-posting tools to do most of the heavy lifting when posting to multiple sites? Vendoo can help you launch your reselling career to great heights in no time! And the best part? It’s free to get started and get a feel for things.
So, the next time you want to sell something on multiple sites, don’t leave money on the table and give Vendoo a shot!
FAQs
Is it legal to resell items in the UK?
Yes, reselling items is generally legal in the UK. Make sure your items are legally acquired and not restricted or counterfeit.
What items can't be resold in the UK?
Certain things like counterfeit goods, weapons, hazardous materials, and prescription medications cannot be resold.
Do I need a license to resell in the UK?
You don’t need a license for casual selling. However, if you’re running a reselling business, you’ll have to register as a sole trader or business.
Is price gouging illegal in the UK?
While not outright illegal, price gouging can damage your reputation. It can also lead to legal scrutiny during crises.
How can I cross-list items for resale?
You can use tools like Vendoo to list your items across multiple platforms, increasing your visibility and chances of making a sale.
