How to Set Up an eBay Business Account

Do you want to sell your products on an e-commerce website and wonder where to start? An eBay business account is a great choice because eBay is one of the most recognised e-commerce platforms. In the second quarter of 2019, the platform had 182 million active buyers and over 1.7 billion visits monthly. This means you will launch your e-commerce business in a market flooded with potential customers.

You can sell a wide range of products on eBay in the UK and around the globe. Remember, you don't need a registered company to sell on this platform but must inform eBay you're operating as a business. Under the Unfair Commercial Practices Directive (2008), it's an offence for any business in the UK to claim to be an individual trader to sell your products.

You can easily determine if you're a company or a private individual. However, eBay requires business accounts to operate in the following ways:

• You can sell items that you've bought intending to resell them
• You can make products yourself and sell them to gain a profit
• You're trading assistant
• You buy your business items on eBay

However, if you're selling items you no longer want, items belonging to you, or purchasing items for personal use, operate a private account.

Selling on this platform could be an uphill task, so start by planning ahead and going through eBay traders' policies and rules. It takes know-how and dedication to turn your online store into a successful operation. Fortunately, we've provided a step-by-step guide to setting up an eBay business account.

A Guide to Setting up an eBay Business Account

Here is how to set up an eBay business account.

Choose Account Type

Go to eBay and select the register button on its home page. You will be directed to creating an account page where you must choose between personal and business accounts. You won't select a personal account because it's for casual selling. Click a business account, allowing you to sell items in large quantities. Remember, when choosing an account type, check the tiered pricing of your desired account. You will pay a monthly subscription fee, but there will be perks like lower fees and free listings when selling. The best thing about the business account is that you can tailor your branding.

Let's check different pricing on the eBay store

Register for an eBay Business Account

When registering for an eBay business account, register as a business entity. This applies to LLCs, corporations, and sole traders. During the setup process, you need to provide your:

• Business employer identification number
• UK postal address
• Landline telephone number: eBay will use this number to confirm your registration
• Bank account details of an account accepting Direct Debit instructions: this will allow eBay to collect seller fees from the items you sell.
• If you have registered your company with VAT, you must provide the VAT registration number to avoid paying VAT on the seller's fee.
• Setting up an eBay business account incurs no initial charges; eBay will bill you monthly for seller fees.

Set Account Preference

After logging into your account, start by customizing your account preferences. Access "Account settings" from the menu bar to update the following:

• Shipping details
• Buyer criteria
• Communication preferences
• Associated addresses

Updating your payment method here is crucial, as it determines how you'll cover your selling fees. Options include PayPal, direct debit, or credit card, with charges automatically applied to the chosen card or account based on your seller invoice. When you become a seller, you can set your account invoice. This will help create a combined invoice when a customer buys more than one item from you.

Note that the payment process may take time, but when the buyer sends you the money, it will show processing. So prepare the order and ship it, and once the buyer settles the money, it will be available on your eBay account.

Add Inventory

It's time to add products to your account. Start by clicking the "sell" link in the upper corner of your account page. You can add inventory on eBay using quick and advanced listing form methods. The quick listing tool streamlines the process by allowing you to input keywords that describe your item. eBay will then suggest product categories and offer listing recommendations based on your descriptions.

The advanced listing tool enables you to provide more detailed information. This method allows you to enter:

• Product Title
• Categories
• Upload photos
• Write the item description
• Specify selling details
• Shipping information

With the quick and advanced listing methods, eBay will calculate the seller fees depending on the provided product information. So pay attention to the product details you enter.

Additionally, you can choose different ways of selling your items on eBay's shopfront, such as fixed price selling, by auction, or allowing your customers to submit an offer. With the auction method, create a listing of your items, and customers compete to increase the price. You can also include a buy-it-now option on auction once the price rises to 40% over the starting price. You can also allow your buyers to make an offer and sell the item for less than the fixed pricing.

Shipping

Timely shipping plays a vital role in your selling on the eBay business account. The website recommends a dispatch time of two working days. Use your eBay shopfront to set a regular delivery option with a shipping calculator that will estimate the shipping cost depending on your location and that of your buyer. You have an option to set no shipping rate or a flat shipping rate. But if you don't charge buyers a shipping rate, it may slash your profit margins. So, calculate the shipping rate to keep your cost under control.

Tax Filing

Anything you sell on eBay will be treated like every taxable activity in the UK. So, ensure you keep accurate all accounting records for costs, expenses, and sales associated with your eBay account. Consider the sales when filing tax with the HMRC and Companies House.

eBay charges a 15% VAT on all sellers' fees for business activity conducted within the EU, unless the business qualifies for VAT exemption. So register with VAT if you want to charge your items VAT. If your company is VAT registered, charge VAT on all your products and ensure the price on your listing is VAT inclusive.

How to Successfully Sell on eBay

After learning the basics of setting up an eBay business account, it's time to learn some tips to help you succeed on this e-commerce platform. Creating an eBay account to trade doesn't guarantee a huge sale. Therefore, we've prepared tips to enhance your listing appearance and competitiveness.

• Pick a niche: when starting your eBay business journey, it's essential to pick a niche to target potential buyers. If your business account has a niche, it will attract repeat customers. Among the niches you can choose, memorabilia, electronics, clothing, etc., a niche will also help you find great prices for your items.
• Aim for quality photos: like other e-commerce markets, high-resolution images and descriptions are vital in selling your items. Ensure each item has well-lit, quality photos shot from different angles. eBay has a picture service tool that will help you provide quality photos even on mobile devices. Your item description should be top-notch. To do this, use keywords when writing the title and description to make it easy for buyers looking for products similar to yours. Accurate description and keyword use are important for your seller account's success.
• eBay is not completely free: You will list up to 50 products per month for free, with additional listings incurring a small fee known as an insertion fee. These fees apply per listing and category, at 35 cents per listing across most categories. After each sale of an item, you'll also incur a final value fee, which is a percentage of the total sale price, including handling and shipping. In most categories, the fee is 10% of the total sale price, with a maximum fee not exceeding  $750. Additionally, there are payment processing fees if you use Managed Payments, which eBay deducts directly.

For a more comprehensive eBay selling experience, consider subscribing to an eBay Store starting at $19.95 monthly for an annual subscription. This option provides hundreds or thousands of free listings each month. Check eBay fees for more information.

• Be smart in pricing: although you can use auction-style listing on the eBay business account, having a fixed-price product can help attract a buyer faster. Take advantage of the eBay quick listing tool that will help you choose pricing options that will attract buyers depending on the items sold in the past.
• Ask for customers' feedback: buyers can rate you, so ask for feedback from your customers to help you enhance your profile. When you engage with buyers positively, you will get more positive feedback that will benefit your eBay store's overall reputation.
• Get a business bank account: for every business you run, it is crucial to have a separate business account. You can track cash flow and have clear records during tax filing with an account.
• Download an eBay app: once you download an eBay mobile app, it will be easier to manage your business from anywhere. The app is free for iPhone, Android, and iPad devices. The mobile app lets you easily create, monitor, and edit your listings. You can also relist items, track customer information, and answer their questions instantly.

Form Your Company with Incorpuk Today

At Incorpuk, we will help you file accurate information when you register your company through us. We will help you with incorporation articles, a registered office address, and all you may need to register your company in the UK. Contact our team if you seek any information; we will gladly assist.

Winding Up

Setting up an eBay business account is a strategic step towards tapping into an extensive market of potential buyers. You can use this platform to sell items you've sourced and crafted or act as a trading assistant. eBay offers a market with ripe opportunities. When starting up, choose the right account type, meticulously tailor your branding, and set up preferences. Use high-resolution photos, detailed and accurate descriptions, and smart pricing strategies to succeed on the platform. Always engage with your customers to enhance your eBay store profile. With dedication and eBay tools, your eBay venture can thrive in this competitive e-commerce marketplace.