How to start an eBay business in the UK, step by step

The steps at a glance

1. Choose what to sell and how you'll fulfil orders.
2. Register with HMRC as a sole trader, or set up a company.
3. Open an eBay business account and verify your details.
4. Create your payment, postage and returns policies, then your first listings.
5. Price every item so it makes a profit after all costs.
6. Dispatch on time, upload tracking and keep records.

Step 1: Decide what to sell and how you'll fulfil orders

Pick products you can get reliably, describe accurately and post at a sensible cost. Look at what has actually sold on eBay, not just what's listed, and at what it sold for. Check eBay's prohibited and restricted items policy before you commit to anything.

Then decide how orders will reach buyers. There are three common ways that eBay allows:

• Buy stock in advance, store it and post it yourself.
• Use a wholesale supplier that dispatches orders to your buyers (dropshipping).
• Make the products yourself.

Watch out eBay does not allow you to list an item and then buy it from another retailer or marketplace that ships it directly to your buyer. Dropshipping must be from a wholesale supplier.

Step 2: Register your business with HMRC

Buying goods to sell at a profit is trading. As a sole trader, GOV.UK says you must register for Self Assessment if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April). You can register earlier if you want to. The deadline to tell HMRC is 5 October after the end of the first tax year you need to send a return for.

You can trade under your own name or a trading name. You can also set up a limited company instead, which has more admin and different tax rules. If you're unsure which suits you, check with an accountant.

Keep records of all your sales and costs from the first day. From 6 April 2026, sole traders and landlords whose total income from self-employment and property is over £50,000 must use Making Tax Digital for Income Tax, which means digital records and quarterly updates. The threshold is due to fall in later years, so check GOV.UK.

Step 3: Open an eBay business account

eBay says you must register as a business seller if you sell items you bought to resell, make items to sell, or buy items for your business. On the registration page, choose Create a business account. If you already have a personal account, you can upgrade it in My eBay under Account settings, then Personal information. eBay says an upgraded account can't go back to personal.

To get paid, eBay asks for your bank details, and the name on the bank account must match your eBay account. It may also ask for ID, such as a passport or photocard driving licence, and for business details such as your legal business name.

eBay sets monthly selling limits and reviews them each month based on your sales and buyer feedback. You can see yours in Seller Hub and request an increase when you need one.

Step 4: Set your policies and create your first listings

Business policies are reusable templates for payment, postage and returns. Opt in, create a few, and apply them to every listing. As a business seller, your returns policy must reflect UK consumer law, including the 14-day right to cancel.

Set a dispatch time you can always meet. eBay recommends no more than 1 working day, if you can do it reliably.

For each listing:

• Write a clear title with the brand, model and key details buyers search for.
• Fill in item specifics fully.
• Use sharp photos of the actual item or the exact product.
• Describe the condition honestly, including any faults.
• Only list quantities you actually have, or that your supplier has confirmed.

Step 5: Price every item for profit

Work out profit before you list, not after you sell. eBay's business seller fees are made up of a final value fee that depends on the category, a per-order fee and a regulatory operating fee. eBay shows them excluding VAT, so VAT is added on top. Check eBay's fee pages for current rates.

• The cost of the item, including delivery to you.
• Postage to the buyer, and packaging.
• eBay fees, plus the VAT on them.
• VAT on your sale price, if you're VAT-registered.
• A margin for returns, refunds and the odd lost parcel.

Tip Set a minimum profit per item and don't list below it. OneDS shows the profit after eBay fees before you publish, and can enforce a minimum profit for you.

Step 6: Dispatch on time and keep records

eBay defines handling time as the time it takes you to hand the item to the carrier after the buyer has paid. Post within it, upload accurate tracking within it, and mark the order as dispatched.

Keep every sale and cost in one place, and check your 12-month sales total each month. If your VAT taxable turnover goes over the VAT threshold, which is £90,000 at the time of writing, you must register for VAT.