Selling on online marketplaces in Australia — eBay, Amazon Australia, Etsy, MyDeal, Catch, Kogan, Bunnings Marketplace, Officeworks Marketplace — involves agreeing to platform terms that allocate substantial risk and operational obligation to the seller. Marketplaces also intermediate between consumer protection law and the seller: under the Australian Consumer Law (ACL), the platform is often the 'supplier' for some claims, but the seller bears most of the cost. The recent ACCC focus on online marketplaces means terms are evolving rapidly.
What is a Seller obligations and platform fees?
An online marketplace seller agreement is a contract between an individual or business seller and the marketplace platform. The platform provides listing, payment processing, dispute resolution, and (often) shipping infrastructure in exchange for fees and commissions. The contract covers seller obligations (accurate listings, prompt shipment, customer service), platform fees, payouts and reserves, dispute resolution, intellectual property, listing removal rights, and liability allocation under the ACL.
Red flags to watch for
Some platforms reserve broad discretion to suspend accounts or remove listings. While operational latitude is reasonable, suspension without notice cuts off seller cash flow and inventory access. Look for a notice-and-cure process for non-fraud cases.
Marketplaces commonly hold a payout reserve to cover potential chargebacks. Reserves with no defined release schedule or vague trigger criteria function as interest-free working capital for the platform.
Under the ACL, certain consumer rights are non-excludable. Where the platform is the 'supplier' for ACL purposes — typically Amazon when selling on Amazon Australia for FBA — the platform cannot fully transfer ACL liability to the seller via contract. Read the indemnity carefully.
The headline commission is often joined by payment processing fees (typically 2-3%), advertising fees, returns processing fees, and shipping fees. Calculate the true 'all-in' commission before committing.
Some platforms automatically enrol sellers in advertising, promoted-listing, or 'recommended' programs that incur additional fees. Look for opt-in defaults.
Platforms compete on consumer-friendly return policies that exceed ACL minimums. The cost of these voluntary policies typically lands on the seller. Confirm what is mandatory under ACL versus voluntary platform policy.
Marketplace terms often grant the platform a broad licence to use product images, descriptions, and reviews for marketing. This can extend even after you leave the platform.
Larger platforms increasingly push supplier due diligence obligations under the Modern Slavery Act 2018 (Cth) onto smaller sellers, often without providing tools or support.
Your legal rights
Australian protections include: Australian Consumer Law (ACL, Schedule 2 of the Competition and Consumer Act 2010) — consumer guarantees that cannot be excluded; ACL provisions on unfair contract terms (B2B unfair terms regime extended in November 2023 to substantial penalties); ACCC enforcement powers and guidance on online marketplaces; Privacy Act 1988 (Cth) and the Australian Privacy Principles for personal data handling; Modern Slavery Act 2018 (Cth) for sellers with revenue above $100m AUD or as required by platform; A New Tax System (Goods and Services Tax) Act 1999 for GST collection (platforms generally responsible for GST on low-value imported goods); Trade Marks Act 1995 and Copyright Act 1968 for IP protection.
Questions to ask before you sign
- 1What is the all-in commission and fee structure, including payment processing, advertising, and returns?
- 2What is the platform's right to suspend my listings or account, and is there a notice-and-cure process?
- 3What is the payout reserve policy, and how are reserves released?
- 4Under the ACL, is the platform or seller the 'supplier' for consumer guarantee claims, and how is liability allocated?
- 5What is the returns policy, and which part is ACL-mandatory versus platform-voluntary?
- 6What rights does the platform have to my content, images, and reviews — and do those rights survive my departure?
- 7Am I automatically enrolled in marketing or advertising programs, and at what cost?
- 8What unfair contract terms protection do I have as a small business seller under the November 2023 ACL changes?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.