Is Upgrading to a Business Account Really Worth It?

[Anonymous]

Is Upgrading to a Business Account Really Worth It?

I'm planning to start selling on eBay and am considering subscribing to a store plan. However, I want to make sure I fully understand the differences before making a decision.

From what I understand:

• Private sellers get 300 free listings per month, and any additional listings only incur a one-time £0.35 fee but can be relisted indefinitely under GTC (Good 'Til Canceled).
• A Basic Business Store costs £27 per month, but only includes 250 free listings. On top of that, GTC listings count toward the monthly free allowance, meaning they reduce the number of new listings I can create each month.

If my understanding is correct, then why would I upgrade to a business account and end up paying more for fewer free listings? Am I missing something?

Would love to hear insights from experienced sellers!

[plpmr]

"Is Upgrading to a Business Account Really Worth It?"

It's not a matter of choice or if its worth it, its a matter of law.

Simple, if you are buying to sell then you need a business registration and you are holding stocks of and selling brand new items.

[rainbowtrax]

Your understanding is correct. The whole fee set-up on ebay is completely messed up and the wrong way round with steady inventory expansion only being encouraged for private sellers while for business sellers it is discouraged by being upfront cost prohibitive. Even the cost of a basic shop subscription is cheaper for private sellers than for business sellers. And that £27 you quoted needs to be multiplied by 1.2 if you're not VAT registered.

Ebay are well known for rinsing all they can out of business sellers, with the UK site also being more expensive for fewer inclusive listings at every shop level than any other country.

Ebay don't make it advantageous for business sellers in any way, shape or form. The issue of which type of account to have is more to do with trading legally as you can't comply with UK trading legislation when using a private seller account. There's certainly no monetary benefit or inducement from ebay.

[Anonymous]

I understand that UK law requires businesses to register if they are buying to sell, holding stock, or selling brand-new items. However, eBay’s business account subscription is a separate matter and is not the same as registering a business with the UK government.

• Business registration in the UK is handled by HMRC (for tax purposes) and Companies House (for limited companies), not eBay.
• eBay’s business account is a platform-specific feature that mainly affects listing fees, allowances, and store benefits—it does not automatically register a seller as a business with UK authorities.
• A private seller can still be legally required to register with HMRC for tax purposes, regardless of whether they use a private or business account on eBay.
• Conversely, someone upgrading to an eBay business account doesn't automatically become a legally registered business in the UK—they still need to complete the proper tax and business registration separately.

So my question remains: from a purely eBay pricing and listing perspective, why would I pay for a business account when it seems to offer fewer benefits than a private account?

Would love to hear if there's any actual advantage to upgrading from this angle!

[Anonymous]

Thanks for the detailed explanation! It’s good to know I wasn’t misunderstanding the situation—seems like eBay’s fee structure really does put business sellers at a disadvantage. Glad I held off on subscribing for now! Appreciate your insight.

[jonatjonatjonat]

But if a misunderstanding of course registering a business account on eBay doesn’t make you a business, but you must register as a business account if you are just that…a business.

From the eBay business policy page

Business sellers are required to follow all government regulations, including registering as a business on eBay, and providing contact information and a return policy.

An eBay seller must register as a business if, for example, they sell items they have bought to resell, they make items in order to sell them, or if they buy items for their business.

What is the policy?

Business sellers can't represent themselves as private individuals and are required to: 

• Register their business on eBay - opens in new window or tab
• Provide the following information in the business seller information section in their listings:
  • Full contact details for the business 
  • Any trade organisations they belong to
  • Any authorisation scheme relevant to the online business
  • Clear information about price, including any shipping or delivery charges and tax
  • A VAT number, if the business's online activities are subject to VAT

[therenewalworkshopltd]

Whether you register as a business or private seller, is simply NOT a choice you can make.

If you are business seller. ie selling to make a profit, then aside from the fact that Ebay rules state that you should register with a business account, if you not do so, then you are also breaking the LAW!

A private account simply does not have the facility to comply with your legal requirements.

This is NOT A CHOICE!  But a REQUIREMENT!

[the-nutwood-collection]

Listings can be relisted indefinitely if they're GTC, but my understanding is that the listing fee is applied each month the listing is live.  The listing can't perpetuate for an indefinite period of time for just 35p.

[555njp]

Correct, you get charged every time it relists.
Oh, and it’s 36p/listing (30p + VAT).

[cobwebcottage]

I see that you have now registered as a business seller. Welcome.

You will now have the multi variation tool to use so you can list all of your balloon dogs on one listing with a choice of different colours. This will save you paying listing fees each month as you will only have to pay one instead of several.

[glimpsecraftsshop]

According to eBay’s official fee page for private sellers (source), GTC listings do not count toward the monthly free listing allowance once they are live. This means that a private seller who has already paid the 35p insertion fee (if applicable) does not need to pay again when the listing renews. 

Are you referring to business sellers here?

[555njp]

Yes that is correct too. 
On my private account, I do not pay to list (up to 300 listings are free). When they roll over, there is no charge.

My earlier post regarding the 36p per listing was the cost for business sellers (on a business account) for individual listings with no shop, so no free listings.

These will incur the listing fee again every time they auto-renew.

[claire1379]

i have a private and business account.. i dont use my business account as i get less views and next to no profit! example i buy a toy from wholesaler for 80p ive seen hundreds sold on ebay 5.99 free delivery from business acccounts and private accounts.. now on my website i charge 2.99 fees are 2%..... on ebay if i sell it at 5.99 on business account i make 3p from item!!! listing exact same on private gives me 1.19 profit.. so just why would anyone choose business account? dont tell me its the law ect its not i seperate my accounting im married to an accountant and he deals with this from lots of business accounts as long as your putting the funds and taxes where they belong its not criminal!

[therenewalworkshopltd]

Why is it, that nobody can understand the basic requirements for running a business legally?

Yes, it IS the law!  By not using a business account, you are actually breaking multiple laws.

The most obvious being, you are not displaying your business address.

You are also fraudulently deceiving the buyer into thinking that you are a private individual.
Most who trade on a private account will also withhold the buyer right of return.
And many more rules besides....

This has absolutely nothing to do with whether or not you pay your taxes!

And lastly, by using a private account, you are stealing fees from Ebay and undermining the honest sellers who are trading legally, all for your own gain!

Go look AND UNDERSTAND Consumer law.

[therenewalworkshopltd]

And I see that you are one of the many denying returns!

[claire1379]

ive not got any business listings on my private account yet im just stating facts! i sell via my website only for my business so stop jumping to conclusions i was simply stating fact

[triple512]

It is the law though. Trading standards and consumer rights mean if you are selling as a business you have to offer returns, you have to make it clear you are a business and you have to display a name and contact address. None of that is possible/permitted on a private account. 
As a business, your liability to the general public is completely different than that of a legitimate private seller clearing their own goods. Also, there are a lot of rules now regarding the sale of any kind of toy as a business so a disgruntled customer only needs to contact trading standards and you could be in a whole heap of trouble.

The only legal bit that you are compliant with is tax. HMRC are not even slightly interested in whether you meet trading standards, they will just be checking your tax return broadly aligns with what eBay report back.

By the way, I’m not judging you, just making you aware the you are actually breaking the law.

You are like thousands of others who are flouting the law, partly because eBay has made it more profitable to do so, partly because you believe by reporting your sales you are legally compliant and partly because like any law in the UK (apart from perhaps murder!) there is little of no deterrent!

So I don’t blame you, but your trading is technically illegal.

[jonatjonatjonat]

You might want to review what Brand New means when listing on your Private account.

Because what you are listing, in many cases should not be listed as Brand New.

[therenewalworkshopltd]

Of course you don't.......   I believe you.

[superchallenge]

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@claire1379 wrote:

i have a private and business account.. i dont use my business account as i get less views and next to no profit! example i buy a toy from wholesaler for 80p ive seen hundreds sold on ebay 5.99 free delivery from business acccounts and private accounts.. now on my website i charge 2.99 fees are 2%..... on ebay if i sell it at 5.99 on business account i make 3p from item!

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...which simply means that running your business via eBay is not viable. It doesn't mean that posing as a private seller is a valid way of making it viable.

My business wouldn't be viable as a bricks and mortar store, so I don't have a bricks and mortar store. It doesn't mean that I'm going to break into a vacant shop and stick my sign on the front to save on the rent.