If you are looking into the opportunities that are available when it comes to starting a low-cost business from the comfort of your own home, then starting an eBay business is a great place to start.

eBay is one of the most recognised and oldest e-commerce platforms out there. Incredibly popular during the 00s, it is still a very popular option for those looking to buy online. With around 182 million active users, it is second only to Amazon, making it a great place to launch your e-commerce business. If you have ever sold, or purchased, on eBay as an individual then you will have some understanding of how the platform works. However, selling on Eaby as a business is a little more complex and takes dedication, skill and a fair amount of insider knowledge if you want to be profitable.

With that in mind, you should find the helpful information contained within our guide a helpful when it comes to setting up your eBay business.

Set up your eBay account

Even if you already have a personal Ebay account you will want to set up a new business account. This will allow you to sell larger quantities of products. To do this you will simply need to select the “Register” button which you will find on the eBay homepage. You will also need to choose the legal name for your business and also customise your eBay storefront with any branding that you have opted for. You will also need to register your business through the correct legal channels as well. This can be done through a company like Your Company Formations.

To register your business account you will need:
  • Business name
  • Email address and telephone number

You will be prompted to create a password and a username for your account.

Creating your eBay business account is free, you only need to pay the seller fees that apply when you list and sell your products.

Once you have set your account up, you will need to make sure that you set your account preferences to suit you. This can be done in “Account settings” which is on the menu bar. This allows you to update things like buyer requirements, shipping information, preferences for communication and any addresses you want linked to your account.

This is also where you need to update your payment method. This is needed to pay any selling fees. Your options are credit or debit card, or PayPal. Your seller invoice will automatically charge this payment method.


Choosing the products you want to sell is an important part of starting an eBay business so do some research and see what other people are selling, and what is and isn’t selling well. Adding your items to your eBay is easy but you do have two options, the first is a quick listing form, the second a more advanced one.

The quick tool is ideal if you want to add keywords to your products which will allow eBay to add it to one of their product categories and suggest listing options to you based on your description. If, however, you want to go into more detail, then the advanced listing tool is a better option. eBay calculates your selling fees based on the information you enter so make sure it is correct.

The most important things to consider are whether you will be doing auction or fixed price, the payment types you accept, your return information and what your shipping rates are.

Helpful Ebay selling tips

Good pictures and plenty of details

The description that you write is only part of your listing. Make sure that you include things like sizing or dimensions as this is often missing information that sees potential buyers looking elsewhere. Plus, don’t forget those keywords that will help in searches. Take good quality images of your items. You can add a good number of images to your listing so make use of this and ensure that you have close ups of any detailing that may catch a buyer’s eye.

Start small

When starting an eBay business, it can be tempting to invest a large amount in inventory, it is a good idea to start small until you really have the hang of eBay selling. This will allow you to test things like your pricing, interactions with buyers and even your shipping methods. Running any e-commerce business can be complex so give yourself time to become accustomed to the ins and outs of selling before adding to your inventory. Remember, it can take time for your business to build up and get that all-important feedback that will give potential customers trust in you and your products.

Consider your fees

If you plan on selling in volume, you will be looking at paying insertion fees (for anything over 50 listings per month). Fees are charged per listing and category, so you need to choose how you create your listing carefully. There is also a final value fee to pay which is worked out at a small percentage of the price of the sale. This is usually around 10%. There are also payment processing fees which will need to be paid. If you want to opt for a more substantial eBay store, then you can pay a subscription which is a monthly amount. This will allow you to make hundreds, even thousands, of free listings every month.


If you are looking at fixed priced items, then you need to research simillar products to see what they are listed for and if they are selling. There is no point being more expensive than simillar products out there.

Customer service

Your sale isnt over when you sell. Much of how you build your reputation as an eBay seller is in your customer service. This means:

  • Completing your sale accurately and quickly
  • Communicating with your customer to let them know their items are on the way
  • Being prepared for some returns – this is the nature of e-commerce and how you handle it will make all the difference. Be efficient about dealing with returns and don’t upset your customer. Good pictures and detailed descriptions will reduce the likelihood of returns.
  • When it comes to lost parcels refer to eBay’s policies in order to ensure the best experience for your customer.

Network with other sellers

One final thought: the eBay community is a fountain of knowledge, so get to know your fellow sellers and network with them. This can be particularly helpful when you come across a difficult situation because there is a very high chance that someone else has already dealt with simillar.

To sum up, starting an eBay business can be financially rewarding.It is essential, however, that you do your research before launching your business to ensure you've ticked all the right boxes. If you need any help setting up a legal entity for your business, please don't hesitate to contact the experts at Your Company Formations for guidance.

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