What, Exactly, Is an eBay Business?

To the question of what an eBay business is, the simple answer is that it's a company that generates profits by selling merchandise on the eBay site. That company, of course, can be a sole proprietorship run by a single individual, as most eBay businesses are, or it can be a legal corporation with multiple employees. The company doesn't have to sell exclusively on eBay; it can sell through any number of channels (including a traditional bricks-and-mortar store), as long as at least some of its revenues are generated via the eBay family of sites.

Contrary to what you might think, eBay businesses do not have formal business relationships with the eBay corporation, nor do they have to be authorized by eBay. To become an eBay business, all you have to do is start selling on the eBay site. Nothing more formal than a standard eBay membershipin the form of a free Seller's Accountis required.

eBay businesses can be of any size, revenue-wise. Some eBay businesses sell only one item a week; some sell millions of dollars worth of merchandise every year. It doesn't even have to be a full-time thing. Many eBay businesses are part-time endeavors run by people who have other full-time jobs.

What distinguishes an eBay business from the average individual selling on eBay is intent. While individuals tend to sell on eBay because they need the money or want to get rid of old junk lying around the house, eBay businesses sell merchandise that they intend to make a profit on. eBay businesses have to purchase or create the items they sell; they also have to ensure a constant flow of merchandise to feed a continuing schedule of auction listings. eBay businesses sell on eBay every week of the year, not just when it's convenient. And they work hard at it.

And, finally, eBay businesses are businesses. That means they have to deal with the same issues any business has to deal withmanaging inventory, handling customer payments, paying taxes, dealing with complaints, and the like. The people behind these eBay businesses do what they do because they like it, sure, but also because they want to make a profit.