When you are trying to create an eBay account, eBay trows in a very daunting question if you want to register a business account or an individual one! This question gets even more confusing when you are a new seller, trying to make an eBay account for the first time ever. You don't even have any idea about what is an individual account or what is a business account on eBay. If you are wondering what are the advantages of having a business account and if there is any disadvantage of opening a business account, in this article, I will discuss the matter that you must know before opening a business account.
What is a business account on eBay?
eBay offers two types of accounts for its customers and visitors, one is personal with which you can do trade, but in a personal ground without a business name and you cannot make a stand for big deals. However, if you have a business account on eBay, they will require some business info from you, but you will be able to buy sell and conduct in big deals using eBay. Make sure you get ebay verified account because you have to get your account verified before you can get into business with full advantages.
Opening a business account on eBay is totally free, however, nothing is free afterward. you will have to pay the seller fees when associating your products and listing them to sell on eBay. And you can have a subscription from eBay with different plans they have, such as Basic, Premium, and Anchor, which come with a good amount of money and the amount go as high as $750.
Disadvantages of eBay business account
When you are doing business using eBay, they are dedicated to making the most out of you as well. So, I will talk about the cons of having a business account on eBay.
Complicated Tax system
Working on your tax returns every year is the most annoying thing you must do each and every year. When you have a business account on eBay, this headache will go even higher, the tax system of eBay will double the work on your tax returns. Plus, eBay will not be any help for you dealing with the taxation headaches at the end of the year.
eBay seems not to be careful about your interest
The primary concern of most of the publicly traded companies is only on their own growth and raising their stock price, eBay is not any difference, they are more into their growth as well. They don't care whether if you are being successful using their service or not, they make sure the shareholders are happy with the growth they are having. They come up with changed rules and regulations often which makes your position and sale bar go lower.
Way more paperwork
When you have a business account on eBay, you will have to go through tons of paperwork especially when taking care of the transaction papers in the tax season. You will have to keep an entire department on the paperwork of the eBay account and keep a track, or the paperwork will throw you in a never-solving maze while solving the tax equations.
Advantages of using eBay
As I talked about the disadvantages, you must be noticed that all the cons are actually their professionalism rather than remissness. Here are the advantages of using eBay to grow your business online:
Lower the Taxes
Although having an entire business will make you pay some additional taxes other than your individual taxes, you will open up some pretty good opportunities for you as well. You will have more deductions to your payable taxes and you can literally make more money out of this business. If you can take the extra headache to your paperwork and get through the taxation time, you will have a great fortune.
Your company's branding
With the business account on eBay, you don't just get your wallet get bigger with the business, you are also expending your business and making the brand value go higher. You can now do many businesses conducts in a way extended way which will lead you to the ultimate success every business owner wants.
If you will make business conducts with a personal account on eBay, when the tax time will appear on sight, the auditors will find you a suspect. But when you are doing it with a name and business, the auditors will go sideways. You can sleep without any tension in your head because you have nothing to worry about when you are doing business with a legal name and there is a good chance of getting deductions in the tax season.
Using eBay, you will be able to add your own business online and start a big journey for your business by launching it worldwide rather than being a local seller. And it’s a great way to be able to add more details to your listings on eBay as well. However, just like the advantages, the disadvantages are quite a few in number. They have implemented every possible drainage to your wallet to drain as much money as they can drain.