Selling on Amazon

[crazy8days]

Good evening!  My neighbor who is a retired math professor from Purdue has started selling products on Amazon.  She came up to me the other day and asked if I might be interested in selling my lip balm through her on Amazon.  I usually sell around 200 in a years time.  She said we could try 200 and see how they sell.  Here are some of my concerns.  My lip balm recipe is not my own concoction.  It came from a website that had a blog section and the person who made it posted to share.  Can that be an issue?  My other concern is say someone says they got sick or a horrible rash!  Can I be sued?  I wouldn't mind giving it a shot.  Love sharing my products and people enjoying them!  But, I don't need issues! 

[Wandering Man]

I don't know about rights to a recipe. Seems like it would need to be copywrited or patented. But, I really don't know.

As far as getting sued, absolutely! Personal injury isn't as rampant as it once was, but it is still out there. You buy protection in the form of liability insurance.

The question is, what's the risk of someone breaking out with hives or some other adverse reaction to your balm?  And are you will to take that risk?

[Bakersdozen]

If you haven't already, be sure to list the ingredients on the label.  Also, when your friend posts the lip balm on Amazon, be sure to list the ingredients on the listing. As for "stealing" a recipe and profiting from it, the originator shared it.  I don't see a problem there but I am not an attorney. Perhaps you might see one before putting your product on Amazon.  Amazon will probably require some type of insurance.
A local hardware chain has repeatedly asked a local beek to put his honey products in their stores.  The insurance they require makes it impossible for him to do so.

[riverbee]

hiya crazy8! so good to hear from you!!!

to your questions:
"My lip balm recipe is not my own concoction.  It came from a website that had a blog section and the person who made it posted to share.  Can that be an issue? "

could be if that person has the recipe patented or could be just cuz get's a bug up their banana about it and/or complains to amazon. easy way to fix that is ask for permission or give credit. not sure how you do that on amazon or your label. if the recipe is generic and thousands similar or a different twist, i wouldn't be concerned about it.

what i would be concerned about:

"My other concern is say someone says they got sick or a horrible rash!  Can I be sued? "

brett, your local folks can sue you just as well as anyone could through amazon. there is always risk.
i am not the attorney, but i did run this past my legal hat in the household.........
just make sure you follow all labeling requirements of the fda to sell on amazon, like bakers said, a list of ALL the ingredients. contact info, etc...  i can send you FDA requirements of lip balm labels and how it should be layed out; yep how it should appear on the label, (in what order).........lol, having made 526 tubes of lip balm for a local law firm and another order on the way. even though you follow all ag and fda requirements, doesn't mean you are immune.

i don't want to discourage you but just make sure you follow the fda guidleines for labeling to sell outside your local market. a little more 'protection' in the event someone takes issue. 

and btw.......congrats on the successful lip balm sales!

[robo]

Couple of other thoughts:

1) I believe Amazon requires every product to have a UPC code,  so if you don't have one for it, you will need to get one.
2) Amazon agreement states you can not sell it for a lower price anywhere else.

[crazy8days]

Good evening everyone! 

When I made my labels several years ago I followed what the FDA requires.  As for what Amazon requires my neighbor who is licensed with Amazon will take care of all that. The shared recipe i have tweaked it some.  I added a bit more peppermint.  That's all.

Question.

Should I try to contact the website and the person to ask permission? 

Would getting a LLC serve me well?

Thanks!

[riverbee]

"The shared recipe i have tweaked it some.  I added a bit more peppermint.  That's all.

Question.

Should I try to contact the website and the person to ask permission?

Would getting a LLC serve me well?"

crazy, i would get the advise of an attorney on the 'shared recipe'.  i do know what it takes on a patented or copyright item.
let me just throw this out for you......i took a few basic recipes for lip balm, and looked at many others. i researched ingredients and did some hard work mixing batches up and tweaking/ testing them and with a group of folks. the final product has been a 'hit' and customers want more. i shared that recipe and how i did it here on this forum to help others making lip balm. i also suggested toning down certain ingredients or ramping it up to suit what a member may be looking for. so what i am saying is.......if anyone took my recipe i freely shared on this forum and started selling tubes of it on amazon, i might take issue with it, especially if i wasn't contacted.  just sayin'......just something to think about. my recipe is not copyrighted/patented, so it would be hard for me to have a 'legal' issue.  doesn't mean someone couldn't make your life miserable selling their recipe in your lip balm on amazon.  again, just sayin'! hope this helps, let your conscience be your guide and what your willing to pay for on an attorneys advice..........

an LLC.........again, i would encourage you to seek out the advice of an attorney in your state and have them assist you with the paperwork. in general an LLC does provide some protection against being sued personally, HOWEVER, you MUST NOT 'pierce the corporate veil' or you open yourself to being sued personally.  what does this mean?  first, you follow the 'rules' for an LLC, documentation, taxes, etc.  second, you must have a separate bank account/credit card /paypal account  in your llc name and funds/expenses are not mixed or never go through any of your personal accounts.  i sorta cut short but basics and why i am saying to seek the advice of an attorney that handles LLC's. 

hope this helps crazy...........

[crazy8days]

River, that helps me a bunch!  Thank you!  I think I will stick to selling to local folks!     One of these days I need to look into a LLC.  Besides a full time job and beekeeping i do maintance work and mow  rental properties my parents own.  Might need to cover my butt on that. 

[riverbee]

crazy, did not mean to discourage you, just saying what i would do to cover myself.  maybe consider ETSY instead of amazon?  maybe less exposure to a problem?

dunno, it only takes one person to make your life incredibly stupid.  been there done that. 

i wish you the best in your endeavors!