Registering with eBay

Simply choose a name and a password and you’re in. Learn how to register for the first time.

Starting and eBay Business

Everything you need to know about running a successful eBay business at the eBay Business Centre.

Decide if you want to set up as an online shop, and open an eBay business account. To start trading under your business name, set up a business account when you register with eBay. All you need in order to do this is a UK address, to receive a confirmation letter through the post, and bank account details to set up a direct debit.

If you already have an individual account, you can change it to a business account on your My eBay page under the Accounts tab.

Should you register as a business?

Choose a business account if you:

• Sell items that you bought to resell.
• Sell items that you produced yourself to sell.
• Sell a large amount of goods on a regular basis.
• Sell new items that you bought but don’t use personally.
• Sell items as a trading assistant.
• Buy items for your business.

What are the advantages of a business account?

As a business seller you can:

• Register with a company name. Your company name will be displayed in invoices, emails, and other buyer communications.
• Display contact details, return policies, and terms and conditions in your listings.
• Possibly receive some tax advantages.
• If you’re outside the U.S. and Canada, you can provide the value-added tax (VAT) percentage when selling with the Sell Your Item form. You can also provide eBay with your VAT identification number and receive net invoices on your eBay fees.

Basic Fees

To open an eBay Shop, you pay a monthly subscription fee. Each item you list in your eBay Shop incurs an Insertion Fee and, if it sells, a Final Value Fee. As a Shops subscriber, you will get reduced rates on Insertion Fees for Buy It Now listings. The level of fee discount you receive depends on which Shop level you subscribe to. The fees shown here apply only to Shops opened on eBay.co.uk.

Learn more about the fees

Note: Shops subscriptions are for a minimum 30-day period.

Things you should DO when starting an eBay business:

1. Set up accounts at wholesalers, preferably a credit account. This way you buy from the wholesaler, sell it on eBay, get paid and then pay the wholesaler 30 days later.

2. Open an account with eBay and get their free listing tool for your adverts.

3. Open a paypal account, or another online banking account so you can take payment via credit card (this will open up worldwide trade). www.paypal.com www.nochex.com,www.worldpay.co.uk, are a few examples.

4. Within three months you must contact the Inland Revenue and tell them you are starting a business. You have two options here: Either form a limited company or inform them that you are a becoming a self employer. Either choice will mean differences to your VAT and class of NI. If you go for a limited company, and you employ staff then there are employer laws to be considered such as minimum pay, holidays etc

5. Look for deductions that can offset income for example: Equipment Purchases, Business Expenses, Auto Expenses, Meal and Entertainment Expenses, Travel Expenses etc

6. Keep good records of everything that is bought and sold. This will also help in keeping track of orders.

7. Invest in an accounting software package that will help with tax, payroll and other business accounting requirements.

Things you should NOT do when starting an eBay business:

1. Never mix your eBay business account with your personal spending.

2. Do not assume eBay will track or report taxes for its sellers. It’s your responsibility to make sure you comply with government regulations.

3. Don’t use the cash method of accounting. As a business with inventory, you will need to use the accrual basis method of accounting. This means income and expenses are recorded as they occur, regardless of whether cash actually changes hands. A sale is entered into the books when the invoice is generated, not when the cash is collected. An expense occurs when materials are ordered.

4. Don’t ignore licenses and permits. For example, if you plan to sell food over the net you WILL need to abide by health and hygiene regulations.

5. Don’t misrepresent what you are selling. According to the Sales of Goods Act if you misrepresent goods you are liable for a whole range of penalties.

6. Don’t bury your head in the sand. If you have an increase of income it is your responsibility to put on the tax. If you expect your income to exceed £68,000 (from 1/5/2009; previously £67,000) you must also register for VAT.

7. Don’t think that you can avoid paying Value Added Tax if you are selling internationally. VAT applies if you are selling goods throughout the EU. It is also likely that you will have to get an export permit and register with the Customs and Excise for international trading.