How to start selling products online

Should I sell on my own website or on a marketplace?

You can start where the buyers already are, then add your own store once you have repeat customers. Each channel has its own guide to fees and setup: selling on Etsy, selling on Amazon and starting a Shopify store. Whichever you pick, read the platform's fee schedule and seller policies before you list, because fees change what you need to charge; see how to price a product or service.

What do I need before my first online sale?

1. A way to take payments. The SBA notes online payment services accept cards and other popular methods for a fee, and that you need a business bank account whichever payment method you choose.
2. Sales tax registration, in your state and anywhere else you must collect. See seller's permits and sales tax.
3. Product safety and labeling checks for what you sell, such as children's products or cosmetics. See how to find a manufacturer.
4. Clear policies for shipping times, returns and refunds, written so a customer can find them before paying.
5. A recordkeeping habit from day one: every sale, fee, refund and expense.

What are the rules for shipping times?

The Federal Trade Commission's Mail, Internet or Telephone Order Merchandise Rule covers online orders. In plain terms:

• When you say or imply you will ship within a certain time, you must have a reasonable basis for that promise.
• If you make no shipping statement, you must have a reasonable basis to expect to ship within 30 days, which is why it is called the 30-day rule.
• If you learn you cannot ship on time, you must ask the customer to agree to the delay, or cancel the order and refund it.
• If you decide you cannot ship at all, you must promptly cancel and give a full refund.

This matters most for made-to-order and preorder products. State a realistic shipping window on the product page, and contact customers as soon as a delay is likely rather than after the date has passed.

How do I handle reviews and influencers honestly?

Reviews and recommendations sell products online, and the FTC's Endorsement Guides set the rules:

• If you give someone free products or pay them to post about you, the connection should be disclosed clearly and conspicuously, ideally in the post or video itself.
• You can ask all customers for honest reviews, but you cannot make a discount or other incentive conditional on the review being positive.
• Asking only happy customers for reviews can be deceptive if it skews the overall picture.
• Family members and employees who post about your product should make the relationship clear.

Truthful product pages matter too. A claim such as "Made in USA" has its own FTC standard, and a former price shown next to a discount must be one you genuinely offered for a reasonably substantial period; see the pricing guide.

What tax forms will I get from payment apps and marketplaces?

Payment card companies, payment apps and online marketplaces report payments on Form 1099-K. Card processors send one for payments of any amount when customers pay you directly by card. Payment apps and marketplaces must send one when your payments for goods or services exceed $20,000 in more than 200 transactions, and may send one for less.

Either way, the IRS says you must report all business income, with or without a form. Keep your own sales and fee records so the numbers on any 1099-K can be reconciled with what you actually earned after refunds and fees. Self-employment tax and quarterly payments are covered in self-employment and estimated taxes.