dropship-kam : dropshipper community

eBay Account – Personal vs Business

By Kam

Opening an eBay account is the first step towards your dropshipping career. Before you open an eBay account to dropship, it is very important to understand which eBay account is right for you. eBay offers two types of accounts:

  1. Personal account
  2. Business account

On eBay marketplace, there are sellers as well as buyers. Some buyers too sell their pre-owned items or even new ones that they have not used. A personal account is for such buyers who are not doing any sort of business and are primarily a buyer even if they do sometimes sell a few items once in a while.

Business sellers account is for those who list and sell items on a daily basis, those have suppliers/manufacturers to source items from. Having a Business account does not mean one has to have a registered business.

Now, as you have a better understanding of which account is for you, I am sure you can make a decision. However, what I am going to explain now is something much more important to avoid any inconvenience that may come along.

I never advise any eBay user to register as a Business. The first reason is, once you register as a Business and have used the account, you cannot rever it back to a Personal account. Secondly, eBay Business sellers have altogether a different fees structure which is generally higher than that of a Personal seller. Also, Business sellers do not receive any free listings like Personal account holders and that means, their eBay fees increases and the chances of profit margin go down heavily. In addition to this, Business sellers are also charged a flat 20% VAT (UK sellers) on the top of their fees.

It should be remembered that even if you are a new dropshipper, you can still sign up as a Personal (Private) account holder and sell items just like a Business. There comes a threshold when you are asked to upgrade your account to Business, but that’s always too far for beginners.

Starters can easily list over 1000 items without upgrading their account and do business. If you are a UK eBay seller and do not hit the threshold of £80,000 over the past 12 months, you are not required to register as a Business. That means, even if your monthly transactions are £5,000, you need not register as a Business.

If you have sold really well, and you are asked by eBay to upgrade to Business, you can choose to do so to continue doing business. Until then, it would be wise not to have a Business account.

As I always say, if you are still thinking of starting dropshipping, this is the right time. In fact, there’s never a wrong time to do the right thing.

Join over six hundred readers: email | twitter | facebook