5 Benefits of Using an eBay Business Account
If you’re looking to grow your eCommerce operation and enhance visibility, you should consider upgrading to an eBay business account. Here are the benefits.
Much like the rest of the eCommerce industry, eBay sales skyrocketed in 2020. eBay has well over a billion active listings and is ranked #5 in Digital Commerce 360’s Top 100 Online Marketplaces Database. Whether you’re just starting off on eBay or thinking about switching over from an individual seller account, there are a few things you should consider when registering your account as a business on eBay.
Someone who’s simply looking to sell some of their used stuff to earn a little side cash will most likely find that an individual seller account suits their needs just fine. However, if you have a large inventory or want to add eBay to your business’ multi-channel selling strategy, then you’ll want to register your account as a business.
When it comes to eBay business accounts, there’s a ton of conflicting information on the web, so I spoke with an eBay support representative and eBay expert and Tamebay co-founder Chris Dawson to find out exactly why you would want to make the switch. “In essence, a business account opens more doors to higher shop levels,” said Dawson, “including better customer support and access to different fee scales which can represent big savings.” Here are the top 5 reasons why sellers should consider upgrading.
Increase Your Selling Capacity
eBay selling limits refer to the amount of items the platform allows you to sell per month. Selling limit upgrades for both individual and business accounts are earned through account performance — namely increased sales volume and positive customer feedback. On the 20th of every month, eBay will assess your account to make a decision regarding your per-month selling capacity. As a newly created individual account, you’re typically limited to selling up to 10 items per month, that, all together, are valued at no more than $500 total. However, with an eBay business account, you’ll have access to a higher selling limit right away. It’s also important to note that if you’re not ready to make the switch to a business account, you can always request a limit increase from eBay. Providing them with detailed information about your business or reasons for the request may help increase your selling capacity.
More Control Over Inventory & Discounts
With a business account, you’ll gain access to the Business Tool within your Seller Hub. This may be a feature worth upgrading your account for if you need to create multiple templates for future listings, design aesthetically pleasing pages without using HTML or sell multiple items within one listing. The Business Tool enables sellers with high inventory volume to more easily manage product listings.
Another feature of the eBay Business Tool helps you to attract more customers. Business account users can use the tool to easily create rules to offer combined shipping discounts to shoppers, highlight this discount within listings and automatically apply the discounted rate in buyers’ carts at checkout
Enhance Brand Identity
A business account gives you complete control over the appearance of your store name, logo, billboard and company description to better promote your brand. If you’re already selling in more than one place, this is something you’ll want to set up to increase brand recognition and drive growth. After all, there’s a reason why “73% of businesses are investing in design to differentiate their brands,” according to Adobe.
Become a Top Rated Seller
In order to earn admittance into eBay’s Top Rated Seller program, you’ll need a business account. Becoming a Top Rated eBay seller greatly improves listing visibility by significantly increasing the likelihood that your listing will appear at the top of eBay users’ search results page. These sellers also enjoy the perk of displaying their “Top Rated Seller” badge on their listings to instill trust and confidence with eCommerce shoppers.
Business Tax Breaks
If you’re switching from an individual seller account to a business account, prepare for a lot more paperwork. Registering as a business on eBay means that when it’s time to do your taxes, you’ll need to file taxes as a business. This entails maintaining a log of every transaction related to your eCommerce operation — sales, inventory purchases, storage space, etc. For United States sellers, check out PracticalEcommerce’s tips on simplifying the eCommerce tax filing process.
However, while this may be more of a headache than filing taxes as an individual, the good news as a business owner is that you’re entitled to substantial tax deductions. Switching to an eBay business account is a strong indicator to the IRS that your eCommerce operation is a legitimate business venture. This provides some major deduction benefits, such as writing off a percentage of your internet, business supplies, office equipment and shipping expenses.
eBay business accounts offer you access to a host of tools and an increased capacity to sell your products. However, remember that a business account isn’t a magic wand to increase the growth of your eCommerce business. Instead, focus on organic growth through creating captivating listings and offering high-quality products. As an individual seller, you can always request an increase in your selling limit and once ready to fully commit to your eBay business, you can upgrade your account at no extra cost.
Managing a large volume of product listings with an eBay business account is only a fraction of the formula for success on eBay. Recall that, in addition to sales volume, eBay also assesses your customer feedback to determine your selling limit and account rating.
When it comes to improving eBay customer satisfaction, Replyco really comes in handy. Our eBay integration seamlessly integrates your buyers’ messages into our powerful customer support inbox, with tools like eBay email templates and auto-response rules, to drastically reduce response time. Designed with eBay customers in mind, eBay case management enables sellers to easily view and respond to complaints, issue returns / refunds and see any related messages all in the same screen with fewer clicks.