Selling items on eBay

Selling items on eBay

Didn't find your answer?

We run a small limited company and we have a fair bit of soiled stock that we can't put in any of our product packs, so we thought we'd try and sell some of it on eBay.

Are there any pitfalls we should be aware of accounting-wise that you know about?

Does it matter what name we open the eBay and Pay Pal accounts in ' does it have to be our company name, or could it be my name. I am one of the directors and I would prefer to use my name."

Anon

Replies (4)

Please login or register to join the discussion.

avatar
By AnonymousUser
25th May 2005 16:19

Cannot answer your specifics but ...
You may want to have a read of

http://www.paypalsucks.com

There are alternatives to paypal, I think. NoChex is another one. I have never had any bad experiences with either ebay or paypal, but I gather that the risks are mainly at the vendor end anyway, and I tend to be a purchaser.

Thanks (0)
avatar
By carnmores
25th May 2005 16:22

No major problems
you do not need to use the company's name as you can act as agent (tho it would be preferable to at least refer to its trading name somehow), tho it may be necessary to disclose it on sales documentation.

for example the VAT status must be clearly defined. the value of each transaction in part determines the type of receipt that needs to be issued

accountingwise it should be treated as a normal commercial transaction and properly recorded in the companys books of account

i am looking into paypal acs myself at moment but my general feeling is that it would be best to set up an account for the company. will let you know as soon as i arrive at further conclusion. the other optionis a merchant services account which for example can be accessed thro certain accing software eg QuickBooks

there is an HMRC unit looking at ebay traders so disclosure is best

Thanks (0)
avatar
By listerramjet
25th May 2005 16:38

fairly common
i think it is common practice for companies to trade on ebay, and sometimes it only becomes apparent when the deal is done and payment is requested.

don't think this matters either way - but it would seem sensible to have a separate ebay account for the company trades and a means of payment that is only used for this, plus keep all the paperwork for each trade.

remember that however you trade you have to keep records that satisfy both the companies act and the taxing authorities, and if you are selling this includes raising VAT invoices if applicable.

Thanks (0)
avatar
By sue.hill
27th May 2005 13:56

E-Bay sales
I sell personal items, and stock items from my limited company.

In order to keep a neat audit trail, and to be able to separately identify (and account for) the costs of selling, I have two e-bay accounts - one for personal stuff, and one for business stuff.

I've used Paypal for the last year, and never had any problems - it seems to be efficient, and quite intuitive to use.

I publicise my company name in the product description, proclaiming my membership of my trade association, to bolster credibility.

I use Sage (Line 50) for my accounts, and process my e-bay sales through a miscellaneous cash sales account, and have a separate bank account set up to mirror the Paypal account. This all helps to keep track of movements neatly.

Hope this helps. E-bay can be great fun, and an excellent way of getting rid of odds and ends. Always be honest about the condition of products you're selling - protect your feedback, as that's your "flag of honour"!! Better to make something sound worse than it is, and have a very happy customer, than a disappointed one.

Good luck, and enjoy!

Thanks (0)