Lots of questions on selling food online

[Jiko]

I'm wanting to start a hobby online business selling prepackaged snack foods that I buy direct from the wholesaler. I'm not expecting many orders to begin with, so i'd be buying the smallest amounts of products that I can, and storing them until they are ordered or I have to dispose of them for being past their use-by date. I also might be attending various conventions around the country and selling food there.

I'm located in Western Australia and was wondering what the legal requirements/laws/acts are that I have to take into account if I want to do this? I've tried to find information on the net, but what I've found is either international/interstate or is for cafe and restaurant owners.

Can I legally store the food in my house (i.e. in a non-dodgy and sanitary location and sealed in airtight tubs in a refridgerator that would only be used for the business)?

Do I need to register with the Health Department or apply for some kind of permit? Will a health official need to inspect the place the food is going to be kept?
Are rules different for people selling factory-packaged food as opposed to food made on the premises?

What kind of insurance will I need? Is public liability insurance enough? Can anyone recommend a decent insurer that will cover the type of activities I'm looking at?

Sorry for the wall of text and million questions. :S

[exstatic]

Hey Jiko,

Not sure about all the legalities of the food side of things.. but I reckon you are over complicating it.

Firstly.. do you know if there is a market there that wants to order snacks online? If so.. how do you know? Have you tested the market yet? How have you tested it?

What I would suggest you do is, hook up with a company that delivers snacks anyway using the traditional methods - build them a website and see whether or not you can effectively 'drop ship' the food..

What this means is, you receive an order on your website, the order goes directly to the supplier, they deliver it on your behalf and you take a commission for making the sale.

That way you don't need to hold food, worry about stock going off and need to make anything - lifestyle business!

I have actually be setting up a business a little like this model lately and its pretty damn exciting, and the possibilities are endless.

[Jiko]

Hi exstatic, thanks for the reply.

I've heard about drop shipping from a book I'm reading, and it may be something I can get into later when I'm more established (I'm not sure the suppliers would feel it'd be in their benefit for just a few orders per week - if it gets higher they might consider it).

The market is there, currently small, but growing at a large rate each year. In fact. I'm part of it - this whole idea came about becasue I couldn't find what I wanted within Australia.

I've tested selling the snacks at a couple of events, and the people definitely wanted what I was selling, as they can't find that type of food where they live.

Basically, what I'm wanting to do fits into a niche that has't really been filled by anyone in Australia yet. I'm hoping to entice people by fast delivery times and low postage costs compared to international orders.

[dazza79]

Can I legally store the food in my house (i.e. in a non-dodgy and sanitary location and sealed in airtight tubs in a refridgerator that would only be used for the business)?

Do I need to register with the Health Department or apply for some kind of permit? Will a health official need to inspect the place the food is going to be kept?
Are rules different for people selling factory-packaged food as opposed to food made on the premises?

Only basic food preparation (including storgae etc) is permitted in residential premises in WA - limited to cake decorating and packaged food, mostly. You will need approval under Regulation 57 of the Health (Food Hygiene) Regulations 1993 (WA) from your local government Environmental Health Officer - as it sounds like you will be handling potentially hazardous foods, the local govt may refer the application to the Food Unit, Department of Health (call them for general info 9388 4920).

You will also probably need Town Planning Approval to run a business from home. Only a couple of WA Councils may ask for evidence of Public and/or Product liability insurance as most haven't figured out that if the home business causes a food poisoning outbreak, the Council that gave the home business approval may be held liable for any claims (as the home business will go bust as they may not have any insurance, and their home and contents insurance is probably not valid in relation to home business activity).

This may all change in a couple of months as new Food Laws come in, and a few councils may opt to ban home food businesses altogether.

(I am a Director of Environmental Health Australia, the association representing Environmental Health Officers)