How to Start an eBay Business with PayPal

By Prev Info - October 17, 2022

 If you want to start an eBay business, you should establish a PayPal account in order to accept payment. A PayPal account allows you to collect on your purchases without the need for an expensive merchant credit card account.

How to Start an eBay Business with PayPal

When you use PayPal, your buyers can pay with credit cards, debit cards or their own PayPal balances in a matter of seconds. expediting all of your transactions and creating a smooth user experience.


1 - Sign up for a sellers account at Visit the eBay homepage and click "Register; at the top of the page. Fill out the required fields on the registration page, including your name, address, phone number and new password, and click "Continue" at the bottom of the page.

2 - Become an eBay seller. Log in to your new account by clicking "Sign In" at the top of the homepage and entering your username and password. Click the "Sell" link on the eBay navigation bar and select the button that reads "Start Selling." The site will prompt you to enter additional information to activate seller privileges. You will need to enter a valid credit card number. Click "Continue" when you finish.


3 - Visit and click "Sign Up" at the top of the page. PayPal will ask you to choose a "Personal," "Premier" or "Business" account. Select "Premier" if you plan to use your own name as the name of your eBay business, or select "Business" if you plan to use an official business name. Fill out the required fields on the registration page and click the link that reads "Agree and Create Account."


4 - Link your PayPal account to your eBay account. Log into your eBay account and click "My eBay" on the navigation bar. Click the "Account" tab that appears near the top of the page, directly beneath your username, and select the "PayPal Account" link on the left side of the page. Click the "Link to My PayPal Account" button and enter your information.


5 - Acquire a resale license or sales ID, sometimes called a seller permit. If you plan to sell on eBay as a business, most states require this certification, which allows you to collect sales and use tax from customers. To apply for a resale license, contact the department that handles taxes in your state. For instance, Florida residents would contact the Department of Revenue, California residents would contact the Board of Equalization, and New York residents would contact the Department of Taxation and Finance.


6 - Begin selling on eBay. Log in to your eBay account and click the "Sell" link to begin listing your items.

PayPal Premier Versus Business Account

Sellers often struggle as to what type of PayPal account they need, or blindly setup an account type without fully understanding the difference between Premier and Business type accounts. Hopefully we can resolve this question in your minds in this guide.

Business Accounts and Premier Accounts both offer the same basic features.

The only distinction between the two is:

Business Accounts allow members to conduct business under a company or group name

Premier Accounts allow members to use their individual name

The Multi-User (Secondary Users feature is available only to Business Accounts)

PayPal Premier accounts should be created by any individual who may anticipate surpassing the monthly limitations placed by PayPal on Personal accounts. Personal accounts that accept credit or debit card payments are assessed a transaction fee. See our "fee schedule" by clicking the "Fees" link at the bottom of any PayPal page for more information. Personal accounts have a limit on the number of credit or debit card funded payments received per year. To view your Personal account limit, log in to your PayPal account and click the View Limits link.

PayPal Business accounts should be created by formal businesses which are either Sole Proprietor, Corporation or Organizations that maintain a federally issued Tax ID Number and wish to provide only their business name, address and telephone number to their customers.

Again, the distinction between the two account types is whether or not you appear to your customers as a valid business or an individual.





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