How To Sell At A Market Stall

Markets are popular for having a different variety of businesses in one place with items you may not ordinarily find at your local shopping centre. Due to this, markets tend to draw significant crowds making them a perfect place for anyone looking to sell or promote their goods. 

In this article, we’ll go through everything you need to know and how to sell at a market stall.

What Is A Market Stall? 

A market stall is a temporary setup allowing its owners to sell their products to visitors. It is often aligned with a set of other stalls, in a larger area that has been set up for a commercial event (such as hosting a market).

It’s similar to a pop-up shop, in the sense that it can be situated anywhere for a short period of time. 

As these events tend to attract large crowds, market stalls are often used to test out a product to see how well received it is with the general public. Additionally, business owners can sometimes set up market stalls to promote their products.

How To Sell At A Market Stall 

The process of setting up your market stall will depend on the market itself. Most markets will require you to book a spot for your stall ahead of time and pay a fee. This can usually be done online or by making a phone call. 

It’s wise to go in person to check out the spot you will be selling at as well, so you can prepare for it. Be sure to ask about the nearest bathroom stall and things like access to water supply. 

It’s also important to decide on your prices, payment options, stock and potential sample offerings before the big day!

Rules For Selling At Markets 

Another crucial aspect to running a market stall is understanding the rules. Every market will have a different set of rules. To avoid violating any policies, make sure you understand and abide by them. 

For example, some markets may have a ban on certain items, types of advertising or a pricing maximum. Beware of the rules and adjust your conduct to meet their requirements if necessary.

What Legals Do Market Stall Holders Need To Be Aware Of? 

Aside from market rules, there are some legal regulations markets stallholders will need to keep in mind. We’ve listed some key considerations below.

New Zealand Consumer Law

Regardless of whether you are selling at a brick and mortar store, online or at a market stall, New Zealand Consumer Law regulations apply all the same. This means you will need to ensure your practices are in compliance with the legislation and don’t bring harm to your customers in any way. 

Some main areas of the Consumer Guarantees Act include:

• Product safety 
• Unfair contract terms
• Returns, refunds and exchanges
• Correct pricing
• Misleading and deceptive conduct

If you need more clarification regarding your obligations under New Zealand law, contact us today for a chat!

Insurance

You may be required to have insurance by some market hosts in order to set up a stall at their venue. If this is the case, then look into the type of insurance that is more likely to be appropriate for your business. 

Common options include public liability insurance, product liability insurance and professional indemnity insurance.

Licences and Permits For Market Stalls

Certain industries require both individuals and businesses to obtain licences and permits before they begin selling certain products. For example, selling food at market stalls will require a licence (more on this later). 

Licences are likely to depend on your region and local council regulations, so it’s important to research them and get licenced or qualified before setting up your stall to ensure you are operating legally. 

We’ve written more about which licence you may need for your type of business. 

Do I Need An IRD Number To Sell At Markets? 

Whether you need an Inland Revenue Department (IRD) number to sell at markets depends largely on your reason for being there. Essentially, if your purpose for selling at the market is simply recreational and more of a hobby rather than a business, then you are unlikely to require an IRD number. 

Hobbies are done in an individual’s own time for personal reasons and the prices charged to customers is simply to make up for the cost of production. This means there is no need for formal registration or business structures.

So, at what point does a hobby become a business?

A business, on the other hand, is purposed towards making a profit. If you are running a business, then you are required to have an IRD number to sell at markets (you may even already have one). 

A business is distinguished from a hobby largely by its processes. This means that regardless of whether  you are keeping books, the planning and organisation of your venture will determine whether it’s a business or not. 

To learn more about distinguishing between a business and hobby, click here. 

Key Takeaways

Selling at markets can be a worthwhile experience. However, it’s important to go about it in a manner that is compliant with all rules and regulations. To summarise what we’ve discussed:

• A market stall is a temporary shop set up a larger location
• Every market stall host has their own way of taking on bookings, as well as regulations for stall-owners
• Consider getting insurance (some organisers will require this)
• If your stall is a hobby and not a business, then you will not require an IRD number
• You will need to apply for relevant licences and permits, which usually depends on region and locality
• There are a number of different things you can sell at markets, from food to cosmetics! Each category of products has their own legal considerations. It’s vital to be aware of them and follow through accordingly

If you would like a consultation on selling at markets, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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