When registering on eBay for the first time, you may not have realised that there are two different types of account that you can register for, these are:

1. A private eBay account
2. A business eBay account

You can switch between the two, but its hidden in the depths of eBay and if you are to be starting your business, you need to know the difference between the two and why you should select the business eBay account.

The private eBay  is aimed at buyers and buyers whom want to sell the odd/few items on eBay which belong to them personally. For example, if you aim is to just clear out your attic of the items you class as junk, then a private account would be suggested. However if your aim is to start and run a business on eBay then you need the next account type.

There is also a simpler fee structure for private accounts and with the current exceptions (as eBay change the fee structure every now and then) of media (like DVD’s and books) & technology products, the flat rate is 10% for the final value fees (the fee they charge when the item sells).

This is aimed at people that wish to start and run their own business on eBay. This type of account has special needs and also legal obligations to follow and eBay caters for these, by allowing you to register not as a private account, but with a business account.

There is a few simple tests that easily identify whether you should have a business eBay account, these are:

1. Are you intending to sell items that you have bought explicitly to sell on eBay
2. You wish to become a eBay trading assistant
3. You are going to manufacture items and sell them on eBay
4. You’re going to sell a high number of items every month (about +250 is a good measure)

There are several advantages to registering as a business on eBay, these include the following:

1. If VAT registered, you can enter your VAT number and subject to approval, have the VAT removed from the eBay fees (net invoices)
2. You can enter and show the VAT percentage that is applicable to the product/services being offered.
3. You are able to specify and display return policies, terms and conditions and business contact details
4. A different eBay fee structure that is typically less than is charged to private buyers

You are also identified as a business seller on eBay on your listings, so that its easier for buyers to distinguish that you are a serious (part or full-time) eBay seller.

You can register as a private seller here and as a business seller here.

99.9% of you need not to concern yourselves with this, however for completion, there is an exception to these two account types and these are for car dealers, these have special obligations and need to register both as a private account and then submit extra business information here. Unless you’re a car dealer, ignore this completely!