Online marketplaces: A guide to selling safely

Instead of throwing out unwanted items, why not earn some extra cash by selling them on one of the many online marketplaces?

While these marketplaces can make selling your goods easy, knowing how to sell safely online is key before getting started.

This guide to online marketplaces covers the basics — from choosing the right marketplace to helpful pointers and safety tips when selling on platforms such as Facebook, Gumtree, and eBay.

What is an online marketplace?

In the digital world, online marketplaces bring together buyers and sellers on an e-commerce platform.

While figuring out how to set up a real-world shop might be daunting, understanding how to sell on an online marketplace can be easy. Generally, anyone can register to join and start selling almost immediately. Simply upload a photo of the item you want to sell, set a price, and wait for interested buyers to reach out. Keep in mind that the process of getting started and listing items will vary depending on the platform, so be sure to do your research in advance.

What are the different types of online marketplace?

There are a range of marketplace types — and depending on what you want to sell, some may be more effective than others. Here are some common examples:

• Facebook Marketplace
• Gumtree
• eBay
• Etsy
• Amazon

Online marketplace safety tips

While it's exciting to know you could make money from selling your items online, putting marketplace safety first is important. Here are some tips that can help:

• When you take a photo of what you're selling, don't include anything in the background that could identify who you are or where you live, such as envelopes with your address or your car's number plate.
• Rather than use your primary email account, create a new one for selling your items. Make sure it doesn't include a variation of your name or age that could identify you.
• Always use a trusted and secure payment method. You can send and receive money in the PayPal App by creating a custom PayPal.Me link or a QR code to accept payments.
• Do not hand over your items until you receive the full amount or are confident the amount has been transferred to you.
• If you need to meet a buyer, do so during the day and in a public place. If you can, have someone with you.
• If something doesn't feel right with a potential buyer, end contact with them and report any suspicious activity to the online marketplace.

Facebook Marketplace Safety

With more than 16 million Australians on Facebook every month¹, using Facebook Marketplace to sell your items could be a good place to start. It's free to use and easy to navigate, especially if you already have a Facebook account.

Here are some tips to help stay safe when selling items on Facebook Marketplace:

• Never give out any financial or personal information, such as bank account numbers or passwords.
• Only communicate on the Facebook app so you have a record of your messages.
• If you think or find you have been scammed, report it via Report a Facebook Marketplace scam, which is available in the Help Centre section.

Gumtree Marketplace Safety

If you want to transact on Gumtree safely, take these things into consideration:

• Message potential buyers via the Gumtree app – and as with all platforms, avoid giving out any financial or personal information.
• You can ask for payment in cash or add a digital payment method to the Gumtree app, such as your PayPal account.

eBay Marketplace Safety

When you create a listing on eBay, you are presented with a range of options at checkout, including credit or debit cards or digital payment providers like PayPal. A potential advantage of using eBay is that you and the buyer may be covered by the eBay Money Back Guarantee.²

Other safety factors to remember are:

• Keep all receipts of your transactions, including delivery information, in case your buyer claims they didn’t receive your goods.
• Don’t send your items until you have received payment.

Etsy Marketplace Safety

The Etsy marketplace is a popular platform for people wanting to buy and sell arts and crafts or vintage items. As a seller, you can request a range of payment options, including credit or debit cards, Etsy gift cards, or PayPal.

Here are some tips to stay safe on Etsy:

• Never give out any bank details and report anyone who requests them.
• Protect your personal information like your address by including a PO box address rather than your physical address on your delivery forms.

How to choose an online marketplace to sell online

You've got something to sell, but how do you choose what online marketplace to advertise it on?

Consider asking yourself these questions:

• Is it reputable? Check what security measures are in place that help mitigate fraud to keep your transactions secure. Also, make sure they have a clear dispute process if you need to use it.
• What payment methods are available? A wide range gives you more options — but use caution when providing any details and remember to never give out personal information such as bank account numbers or passwords that could compromise your safety.
• What fees will you be charged? If you have to pay fees, make sure they're not so high that selling your item isn't worthwhile.

Alternative ways to receive money safely online

While cash is one way to receive money for your items, an effective and secure alternative for receiving money is PayPal. Once you've set up a PayPal account, you can create a custom PayPal.Me link, which your buyer can click on to securely pay for your item via their own account.