Business or Private?

soapyjoe

I've been watching the seller of this ebay item 130524038274 for a couple of months now (sorry dont know how to post a link). And he/she is regularly offering 100+ items which are obviously bought to sell, especially as some of it is listed as originally being from a major diy store.

How are they getting away with not being a business seller?

chemical.galaxy

I know - it's frustrating, when I run a search on similar items to mine to know how to price them there are dozens of private accounts selling the same thing, obviously for a profit.

sequence

Ebay doesn't care as they get more FVF from private sellers.

macfly

Exactly. Anyone listing this way can't escape their obligations by pretending to be a private seller. Yet it costs more. Let them get on with it.

d.ross_2

In many cases it could be that they have just taken a gamble and bought a pallet of seconds/returns, and they are trying to make some extra cash. However in this case looking at the feedback, and the number of items for sale, I'd say they are running a business. It is possible that they are trying to avoid being covered by distance selling regulations. Or it could just be an oversight.

It is also possible that they should be VAT registered, or at the very least declaring their income to Inland Revenue.

soapyjoe

Even buying the odd pallet to sell on, constitutes as selling as a business according to ebay rules and regulations.

I would assume it's the taxman they are avoiding.

Possibly someone on benefits too.

olias

soapyjoe wrote: »

Even buying the odd pallet to sell on, constitutes as selling as a business according to ebay rules and regulations.

I would assume it's the taxman they are avoiding.

Possibly someone on benefits too .

The above points are the crux of the problem - Which is why they are able to undercut small business sellers like myself. After all, if you already recieve JSA, IS, HB, CTB etc etc, and pay no tax, you don't need as big a profit margin on each item to make it worthwhile:mad:

I have already replied in another thread about this - I have searched and found 'private' buyers selling large amounts of the same item as me, obviously sourced from the same supplier, and priced so that they are barely making anything, and they are selling loads! Meanwhile, my items, which are priced at a reasonable mark up (and in line with what other business sellers charge) are not selling nearly as many - for obvious reasons!:mad:

Surely it can't be that difficult for ebay to have software that recognises if a 'private' account is selling multiple amounts of the same item - all BNWT!!!!?????

Olias

RFW

sequence wrote: »

Ebay doesn't care as they get more FVF from private sellers.

Which makes you wonder why they bother to remain as private sellers. As I understand it, the private/business sellers differential was set up partly after Ebay consulted with HMRC, private sellers who are obviously businesses get flagged by HMRC bots searching the site (in co-operation with Ebay), so whilst on the surface it looks like nothing is being done, these sellers are essentially being given enough rope...

d.ross_2

RFW wrote: »

Which makes you wonder why they bother to remain as private sellers. As I understand it, the private/business sellers differential was set up partly after Ebay consulted with HMRC, private sellers who are obviously businesses get flagged by HMRC bots searching the site (in co-operation with Ebay), so whilst on the surface it looks like nothing is being done, these sellers are essentially being given enough rope...

Well thets hope for the sake of businesses that they get caught.

By being private sellers they also avoid distance selling regulations, and the sale of goods act. So there is less protection for the buyer.

macfly

d.ross wrote: »

Well thets hope for the sake of businesses that they get caught.

By being private sellers they also avoid distance selling regulations, and the sale of goods act. So there is less protection for the buyer.

No they don't. Just saying you are a private seller doesn't make the law redundant.
There's also zero evidence of tax evasion. The assumption they are on benefits is also outrageous.

RFW

d.ross wrote: »

By being private sellers they also avoid distance selling regulations, and the sale of goods act. So there is less protection for the buyer.

They can't avoid dsr, they can try but calling yourself a private seller doesn't absolve you from the law and Trading Standards would happily prosecute anyone who thought otherwise.