Ebay set to stop Private Sellers?

bonsaichristian

Why does Ebay no longer want to us to sell our broken laser pointers?, the first item ever sold and the reason it was born.

I recently returned to selling my unwanted goods after an 18 month break and am shocked at the way Ebay appears to be favouring high volume business sellers to the detriment of private sellers, effectively turning Ebay into an online clearing house for Businesses or “Amazon-lite”.

I have enjoyed a successful selling hobby on Ebay since 2003 and have a current feedback of 2018 with a 100% feedback score and an average DSR of 4.7. I say this to silence all those out there that will dismiss me as ‘just another disgruntled Ebayer’

I took advantage of the free listing day in June and uploaded around 100 items. When I tried to relist the unsold ones, an error message appeared stating that I had reached my selling limit and would not be able to relist the items for another 30 days. What Selling limit? It would appear that Ebay has secretly implemented a monthly selling limit for private sellers.

If your account is in good order they will review your selling limit. After emailing them, my limit was increased but they stated that I must now register as a Business seller. This condition wasn’t included anywhere on the Ebay help pages. All I want to do is sell my summer stuff whilst it is still summer.

All the items I sell were originally bought by me, for my personal use. The HMRC and Ebay state that if you are buying or making goods to sell on, or conducting systematic and repeated transactions, you are a trader and must register for Tax/NIC/Vat purposes. I contacted the HMRC explaining what I sell and they have confirmed I am not classed as a trader. In fact if I register myself as a trader as per Ebay’s requirement, I will be committing an offense by misleading consumers.

After a few days of back and forth emails, Ebay have ignored my appeals for commonsense, will not reset my selling limit to its previous level and have disregarded the HMRC’s guidance. They will suspend my selling ability from the 5th July unless I comply and become a Business seller.

Ebay stated in one of their emails that “since the launch in March 2009 of zero insertion fees for private sellers who list in an auction format with a starting price of 99p or lower, some sellers have been taking advantage of this pricing to list very large volumes of lower quality goods, creating a poor experience for buyers and other sellers. We have taken steps to keep the marketplace in balance and set a threshold for private sellers. If they list beyond that threshold, they will be blocked from listing further items until they upgrade to a Business seller”.

Ebay will not tell me what the selling threshold for private sellers is and therefore anyone who reaches this unknown monthly threshold and like me asks for a review, will be required to upgrade to a business seller. I don’t want to stop selling on Ebay, but if I give into their demand and falsely register as a business, I’ll be breaking the law.

Ebay rightly state that traders masquerading as private sellers is an offense. They fail to mention that private sellers masquerading as traders is equally illegal. Ebay are misrepresenting HMRC regulations as a lever to move into other markets – they’ve obviously decided their new model is more profitable – but why go about the change in such an underhand way? Ebay are demanding private sellers become business sellers knowing that the majority will not do so because it is illegal and will therefore leave.

The emails I have received from Ebay present as fact information which is plainly contradicted by the HMRC – which has precedence – Ebay’s rules or UK law?

So beware all you private sellers out there – if you wish to continue selling on Ebay, don’t list too much and NEVER ask for your selling limit to be reviewed!

piratefairy

In the last ebay email i received, it states that the limit is 100 items for private sellers, per month. I'm sure someone will be able to help further.

bonsaichristian

They said they wouldn't tell me what the limit was as Sellers would abuse this by listing just under the threshold

theonlywayisup

It wasn't secretly implemented. Well highlighted in fact.

Yes of course HMRC need to know if you are buying/making specifically to sell on. That is a business and as such you need to pay the appropriate taxes.

Registering as a business on Ebay is NOT the same as registering with HMRC. If you are a business then you should register with both. If you are a private seller but exceeding the quota allowed by Ebay then register with Ebay as a business. Agree or disagree, but it is quite simple.

Harry_Flashman

As I understand it (and I have tested it), it's only that the first 100 items are free listing, after that you pay.

I know nothing of an ABSOLUTE limit.

bonsaichristian

So what are the legal implications of registering as a business on Ebay but not being a business ? Ebay say that by registering as a business you are subject to distance selling regulations, VAT etc which sounds to me like they are officially calling you a business and in the help pages they say they will share information with the HMRC on business sellers. So not registering with the HMRC could leave you open to investigation.

piratefairy

Thanks Harry Flashman, that was the rule I was thinking of!!

theonlywayisup

By registering as a business yes, you are subject to DSR, VAT etc, but only if those are applicable. They deem 100 listings sufficient for a private seller. It is their rules, their site, their decision.

Yes, by not registering with HMRC leaves you open to investigation, but so does being a private seller and not registering with HMRC. Both Ebay and HMRC are purging accounts, second hand clothes a favourite at the moment.

If you are a bona fide private seller but exceed 100 listings, then you have no choice but to register with Ebay as a business.

However, you only need to register with HMRC if you buy items with the intention of selling.

HMRC look at Ebay accounts anyway, they are purely interested in those evading the payment of revenue.

bonsaichristian

I think the point of my posting is being missed - Ebay are manouvering private sellers towards being business sellers precisely so that they will leave. With so many businesses using ebay to get rid of unwanted stock, the private seller could be seen to be devaluing the ebay brand and competing with businesses who sell new products for more money.

bonsaichristian

Thanks theonlywayisup, have you had this issue yourself ?

theonlywayisup

I don't think the point of your post was missed. But I think some of the things you said are wrong. As I said ^^^ it wasn't secretly implemented and you don't have to register with HMRC.

Whether you agree or not, they have set the limit at 100 free items per month. Likewise they can still decide you need to be a business as they deem you are selling too much.

Yes, of course Ebay are forcing some individuals to become businesses, but not all that is a bad thing. There are numerous so called private sellers selling tons and tons of stuff, no way are they private.

Ebay is a business and must strive to make more money. If it is at the expense of a few free listing days to remove the wheat from the chaff, then I am all for it.

I have a business and a private account. Never have I been asked to upgrade, but that is because I don't flog it, I list personal stuff and use it to buy personal stuff. I don't have a problem with it.

Ebay is trying to steer private sellers to Gumtree. A better platform for the usual tat in my opinion.