Hundreds of online marketplace side hustlers making £400 a month selling second-hand goods
11/17/2024 08:46 AM
TWO thirds of Brits love buying and selling from online marketplaces – with the average adult exchanging 21 items so far this year.
A poll of 2,000 adults revealed fashion items, hobby products and home and garden ware are the most popular items to buy and sell.
A fifth even claim selling second-hand goods online is their “side hustle” – with some making more than £400 per month.
While almost one in 10 (9%) have turned selling on online marketplaces into their full-time job.
As a result, 83% feel it's important they maintain a high overall rating on their profile, as 49% of buyers are deterred from poor reviews.
And 40% won't make a purchase until they've checked the reviews.
To maintain high reviews, 48% ship packages quickly and 43% will ensure they respond to queries within the hour.
It also emerged 47% of sellers are posting goods nationwide – and 47% of all sales have been shipped off around the country rather than being collected or personally delivered since the start of the year.
Neill O'Sullivan, managing director of parcels and mails at Post Office, which commissioned the research, said: "It's incredible to see how many people are not only decluttering through online marketplaces but also turning it into a significant income stream.
"Maintaining a high seller rating has become crucial, with quick delivery and prompt communication being the key to happy customers.
"In a world where next-day delivery is expected and customers want to see exactly where their parcels are along the way, we know the importance of ensuring packages are tracked and arrive safely.
“Now even smaller sellers can offer this kind of service if they use the right delivery carrier.”
The rise of marketplaces could be down to people loving the variety of products available (62%), while 58% said it's more convenient being able to shop from home.
Nearly half (48%) claim it gives them the ability to compare prices easily and 39% love the opportunity of selling their unwanted items for extra cash.
But 53% have been put off from buying from an online seller due to high shipping costs.
Alison De Lara, founder of Mamma Duck Company, who has been selling her popular wooden ducks online since 2013, said: "While being an online seller has been brilliant at allowing me to grow my business and build loyal, returning customers, it comes with its challenges such as ensuring items get to them on time and securely.
"Just like those in the research, for me, affordable delivery options, convenient drop-off locations, and reliable tracking are important aspects which make sending items a positive experience.
"Tracking, in particular, gives my customers peace of mind and being able to offer delivery options that suit their budget and time scale has absolutely been key in boosting my customer experience."
Neill O'Sullivan, from the Post Office, added: “With Christmas on the horizon, shoppers are more likely to spend with sellers who can offer a choice of delivery options and provide tracking, matching the service from big brands.
"A variety of delivery carriers means online sellers can make the most of the Christmas rush, without the stress, as Postmasters can advise on the most suitable posting options."
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income – but you need to know the rules.
When you’re employed the company you work for takes the tax from your earnings and pays HMRC so you don’t have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: “Caution should be taken if you’re earning an additional income, as this is likely to be taxable.
“The side hustle could be treated as taxable trading income, which can include providing services or selling products.”
You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you'll usually need to pay tax.
Stephen added: “You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
“The applicable tax bands and the amount of tax you need to pay will depend on your income.”
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe – plus extra fees on top.
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