How Old Do You Have to Be to Sell on eBay?
With over 159 million active buyers worldwide spending over $80 billion annually, eBay is one of the most popular ecommerce platforms (1). For ambitious entrepreneurs of any age, the highly-trafficked marketplace presents an exciting opportunity to start an online business. However, eBay does enforce age limits dictating how old sellers must be. This article will cover eBay’s official age policies, options for teens under 18, plus tips for young sellers.
eBay’s Age Policy for Sellers
According to eBay’s User Privacy Policy and User Agreement, members must be at least 18 years old to buy or sell on eBay (2). This age restriction of 18+ applies to all product categories. Per eBay, it is mandated for legal and liability reasons – selling items on eBay is considered entering into contractual relationships between buyer and seller, which legally requires both parties to be recognized as adults.
eBay transactions also involve the exchange of personal and financial information, which adds another layer of liability in allowing minors access. So unfortunately for aspiring entrepreneurs under 18, this policy seems to restrict selling activities on eBay. However, alternatives do exist.
Selling on eBay Under 18 with a Parent’s Supervision
The most viable way teens under 18 can sell on eBay is to leverage a parent or legal guardian’s eBay account with adult supervision.
With a parent’s oversight and permission, teens can access all selling functions using the parent’s credentials – listing items, communicating with buyers, processing payments, shipping orders, etc. However, the parent remains legally responsible for all account activity since the User Agreement is connected to their identity.
This requires parents to actively monitor transactions, provide guidance around sales laws and tax compliance, and assume accountability. Specific elements requiring parental supervision:
Choosing Products
Parents can guide teens in selecting profitable, high-demand products to sell on a supervised eBay account. Conducting keyword and completed listing search is crucial to gauge market demand. Top selling eBay categories include:
!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}();
Pricing Items
Reviewing closed item listings provides pricing guidance. Factor in all selling costs when setting prices. Insert tax inclusive pricing for locations with sales tax. Enable Best Offer listings to allow buyers to negotiate discounts.
Writing Listings
Crafting well-written, engaging listings with detailed descriptions and high-quality images is vital to conversion. Ensure accuracy in product specifics like UPC codes, dimensions etc. Provide shop policies regarding shipping, returns, etc.
Customer Communication
Respond promptly and professionally to pre-sale buyer inquiries about products, shipping costs, bundled listings etc. Be friendly yet honest about any flaws. Update listings if items sell elsewhere.
Shipping Correctly
Choose shipping carriers with tracking like USPS, FedEx, UPS. Purchase the right packaging materials to avoid damage. Handle returns smoothly if necessary. Update tracking info.
Tax Obligations
Understand sales tax registration requirements based on sales volume for your state, as in the map below:
!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}();
(1) U.S. Census Bureau and eBay Inc.
Some states require sales tax collection even below nexus thresholds for minor sellers depending on filing status. Parents can refer to resources like TaxJar when guiding teens on remitting taxes properly.
Staying Safe Online
Parents need to regularly discuss online safety – teens should avoid sharing personal data publicly online and watch for suspicious buyer activity. Enable additional account security like two-factor authentication.
With active parental supervision in these areas, teens can obtain valuable small business management experience in an ecommerce environment while complying with eBay’s age policies. But additionally, legal obligations vary regarding business licensing and tax compliance that parents and teens should research based on their state and county laws before selling over $500 in merchandise annually.
Understanding Licensing and Tax Obligations Before 18
While federal law allows those under 18 to work and earn income, state-level requirements regarding formal business registration and tax filing vary for minor entrepreneurs compared to legal adults (3). Parents should help teens understand 3 key legal aspects:
1. Business Licenses
Most states allow minors to obtain a general business license with parental consent, often through a guardian signing the license application. However, additional permits/certificates may be needed for specialized resale of categories like electronics, luxury goods, automotive parts or firearms, which commonly have extra age, bonding, or insurance stipulations.
2. Sales Taxes
Once teens eclipse online sales thresholds specific to their home state (usually $1000+ annually), they are liable to collect, file, and remit state sales tax from buyers (rates shown earlier). Failing to collect tax where mandated results in the seller owing tax from their profits.
3. Income Taxes
While rules differ between dependents and independents regarding minimum income levels and parental involvement, in most cases teens must file taxes if annual earnings from self-employment income or assets exceed $400 to $1300 depending on age and filing status (4).
So while teens can gain valuable small business experience selling on eBay before age 18 using a parent’s account, properly understanding tax and licensing obligations based on sales volumes and locations is an important aspect of maintaining compliance and avoiding unnecessary penalties or interest charges. Parents should make sure to report a teen’s online selling earnings if claiming them as a dependent.
Best Practices and Tips for Teen eBay Sellers
For teenagers ready to start selling products on eBay under a parent’s active supervision, here are some top tips for success while staying compliant:
🔎 Research in-demand items: Use eBay search data and tools like Terapeak or eBay Pulse to analyze seasonality, peak demand, and pricing trends across product categories. Consider existing hobbies and interests as well.
💰 Price strategically: When first launching new listings, consider promoting with lower Best Offer discounts or reduced shipping rates to build initial buyer traffic and reviews.
🖨️ Create compliant listings: Ensure shop terms and conditions cover refunds, privacy policies, product condition disclosures, safety notices for restricted items. Enable immediate payment.
🤝 Communicate professionally: Respond to buyer inquiries within 24 hours. Be upfront about shipping upgrades. Thank customers for their purchase and feedback.
🚛 Fulfill orders meticulously: Print shipping labels with tracking within 1 business day. Add insurance for high-value items. Proactively refund issues.
💳 Use managed payments: Enable automated tax calculation and remittance reporting. Avoid taking direct payments. Refer disputes/claims to parents.
📊 Track data insights: Review monthly reports on sales, traffic metrics, peak times, best-selling items, common buyer locations and demographics. Learn Google Analytics.
Conclusion
In summary, while eBay officially requires sellers to be 18+, teenagers under 18 can still sell items on the platform under close parental supervision and using a parent’s account with their consent. However, parents retain all legal and financial accountability for the child’s selling activities and earnings. Therefore, parents should make sure teens understand all related business licensing, sales tax registration, income tax filing, and online safety obligations involved before selling actively on eBay.
With supportive guidance from parents in these areas though, selling on eBay can allow entrepreneurial teens to gain first-hand small business experience while making supplemental income by leveraging one of world’s largest online marketplaces.
