Ebay is one of the biggest online marketplaces on which you can buy or sell anything you want. At a first glance selling on Ebay seems to be an easy task. However, you need to be sure that you comply with its terms and conditions in order to successfully operate your online business through the marketplace.
When do I need to open an individual account?
Sellers wishing to sell any personal item that he or she does not need any longer can open an individual account. Individual accounts work even if you wish to sell your belongings on a regular basis. In order to start selling on Ebay you need to select Sell on your eBay account page and then create a listing of items to be offered for sale.
When do I need to open a business account?
You intend to use Ebay as part of your business offering large quantities of goods or reselling manufactured items. In this case you are required to open a business account.
You can switch from an individual account to business account at any time. Or you can create the business account as a new user. The Ebay policies provide the following actions that qualify business account:
- selling items that you have bought to resell;
- making items yourself and selling them, intending to make a profit;
- selling a large number of goods on a regular basis;
- buying items for your business.
Business account looks professional and reliable for your current and future customers. You can choose an easy-to-remember and attractive business name and develop your logo.
What payment methods should I choose to accept money?
Ebay allows to choose between several automatic payment methods such as PayPal, direct debit, or credit cards. While PayPal may not always be the best option due to its high transaction fees, you can open an online merchant account to receive payments on your debit or credit card issued by such payment provider.
Online payment systems are modern and useful tools to facilitate online payments. You can find plenty of payment systems that offer online banking services. Such systems have a number of benefits towards traditional bank accounts. In particular, it is easier and quicker to open an account in a payment system. Maintenance and transaction fees are lower that make them highly competitive and much-in-demand among startups, small and medium-sized businesses.
Do I need to register as a company if I have Ebay business account?
Depending on the jurisdiction you do not need to register as a company to operate through Ebay. In the meantime, you need to check with your local lawyer whether you need to register yourself or your company for this purpose. Most of the countries allow individuals to register as sole entrepreneurs if they run small and medium-sized businesses. With this option you can significantly lower your tax burden while being compliant with laws.
Do I need to pay taxes for the profit derived from my Ebay business account?
Once you generate income from your Ebay business, you are required to pay taxes from your income. Don’t be scared with it as you can delegate all relevant paperwork to your accountant. If you do not need a separate accountant in your team, you can use online accounting services that will help you with bookkeeping on a remote basis.
What else do I need to do in order to run my business successfully on Ebay?
Ebay is an excellent tool for running an online shop. It allows you to set your own policies. In most cases, you may have your own rules that you need your customers to be acknowledged with.
For example, you can set your own return policies. Accepting returns on Ebay is not required. But online customers value when online shops accept returns. For many customers the return option can be a big advantage in comparison to other online shops. You can write about it on the product description page. Or you may sell products that cannot be returned due to hygiene requirements. Just tell about it to your customers. On Ebay you can be rather flexible and set your own policies on refunds and returns.
It would be wise to prepare your own terms and conditions and let your customers know about:
- payment methods you accept;
- your policy on returns and refunds;
- applicable taxes and customs fees;
- shipping policies;
- shipping time;
- handling fees
- warranties and guarantees;
- contact information for customer support.
Terms and conditions are very important if you want to avoid any disputes with your customers. Being honest and open with your requirements means that you will gain long-term customers who will value the quality of your services.