When should you register as an eBay business?
The transition of going from a casual eBay seller to a serious one making regular profits can happen more quickly than you think, and at some point, you will need to register with eBay as a business.
Why register?
Because it is illegal not to! Every business seller has a legal obligation to make it clear to their buyers that they are operating as a business. This is to show buyers that you are selling items with the intention of making a profit, as opposed to casual sellers who might sell a few things from around the house to clear some space and so on.
If you choose not to register and falsely represent yourself, you will be breaking the law, and may have your eBay seller’s account frozen and have to deal with the people at Consumer Affairs enforcing the Unfair Commercial Practices Directive.
Another reason to register is that you may qualify for a reduction in eBay fees. Wouldn’t that be nice?
Are you a business yet?
It’s time to register if you:
- Sell items you bought to resell
- Make items yourself, then resell them with the intention of making a profit
- Buy items on eBay for your business
You don’t need to register yet if:
- You sell things that belong to you and that you don’t need anymore. And don’t think you can try and convince anyone that you bought 300 electric hand beaters for yourself, then decided you went a bit over board, and sold 299 of them. It will not go down well!
- You use the account to buy personal items for yourself
If you manage to fit into both categories because you use the same account to sell items which you have bought for reselling and buying a few personal items for yourself, there is an easy solution.
By setting up two separate accounts, you can keep one for personal use, and one for your business. This means that when you do want to sell your own personal items, you can do so with your personal account, saving you from paying any associated taxes on it.
How to make the switch from a Private Account to a Business Account
Simply visit: https://scgi.ebay.co.uk/ws/eBayISAPI.dll?ChangeRegistrationAccountType&ChangeRegistrationAccountType&guest=1&changeregistrationaccounttype , sign in and click the Business Account box and click confirm.
If you are unsure whether you should register as a business, or require more information, please visit the eBay Business Centre
Stay tuned for more information on registering as a business on the SaleHoo UK blog.