Some eight million Brits run an online business from home.
Research from Direct Line for Business claims that 5.2 million people in the UK specifically purchase goods to resell, while 2.8 million sell home made products such as greeting cards, soaps and eBooks.
Three quarters of home businesses keep all their stock at home with an average value totalling £4,388.
The top five per cent of private sellers on "a leading online auction site" are generating an annual turnover of £18,094.
Jazz Gakhal, Head of Direct Line for Business, commented: “A large proportion of people clearly don’t view themselves as running a business, despite generating a sizeable turnover selling goods online to be dispatched from their home.
"People should check with HMRC if there activities online mean they qualify as running a business. We urge people looking to make or sell items from home on a regular basis to organise home business insurance from the start."
