How to sell on eBay: fees, listings, shipping and tax

Published Saturday 28 February 2026

Table of contents

• Why sell on eBay?
• How much does it cost to sell on eBay?
• Who can sell on eBay?
• What to sell on eBay
• How to set up an eBay account to sell
• How does shipping work on eBay?
• How do you get paid on eBay?
• Handling customers on eBay
• Do sellers have any protection on eBay?
• How to sell on eBay internationally
• How to grow your eBay business
• How to track your eBay income
• Track your eBay sales with Xero
• FAQs on selling on eBay

Key takeaways

• Create compelling listings by writing keyword-rich titles, taking high-quality photos from multiple angles, and describing items thoroughly with honest condition details to attract more buyers and reduce returns.
• Price competitively by researching completed listings for similar items, and consider offering free shipping by building postage costs into your item price since seven in ten UK buyers prefer this option.
• Respond to customer questions within 24 hours and ship items within your stated handling time to build buyer confidence, improve your seller rating, and qualify for eBay's seller protection.
• Track your income carefully since UK sellers must register for Self Assessment and report eBay earnings to HMRC once they exceed the £1,000 tax-free trading allowance.

Why sell on eBay?

Selling on eBay gives you instant access to 22 million active UK buyers without building a website from scratch. You can start earning extra income quickly with minimal upfront investment.

Key benefits of selling on eBay:

• Low barrier to entry: no need to build a storefront, buy property, or hold stock upfront
• Built-in audience: millions of buyers already visit eBay daily looking for products
• Trusted platform: secure payment methods and seller protection keep your transactions safe
• Flexible selling: combine eBay with Amazon, Etsy, or your own website to maximise reach

How much does it cost to sell on eBay?

eBay charges sellers approximately 10–15% of the final sale price, depending on the product category. This includes a final value fee taken when your item sells.

eBay selling fees include:

• Final value fee: around 10–15% of the total sale price (including postage)
• Listing fees: free for your first 1,000 listings per month; fees apply after that
• Optional upgrades: promoted listings and subtitle fees cost extra

Check eBay's full list of selling costs for current rates in your category.

Who can sell on eBay?

Anyone aged 18 or over with a UK address can sell on eBay. You'll need to create a free eBay account and link a valid payment method to receive funds.

eBay restricts items that violate laws or infringe intellectual property rights. Otherwise, you're free to sell most products, whether new or second-hand.

What to sell on eBay

Popular items on eBay range from electronics to fashion to collectables. Choosing products you're passionate about makes selling easier and helps you write better descriptions.

Top-selling categories on eBay include:

• phone accessories and cases
• clothing and shoes
• craft supplies and materials
• baby clothes and accessories
• beauty products, skincare, and supplements
• fitness equipment like weights and yoga mats
• collectables and vintage items
• computers, laptops, and tablets
• jewellery and watches

What to avoid when selling on eBay

Items that violate laws or infringe on intellectual property rights are prohibited on eBay. Other items to avoid include certain foods and used personal care products.

For example, eBay prohibits foods like wild mushrooms and unpasteurised fruit or vegetable juice. Used cosmetics, sponges, and applicators are also prohibited. Other prohibited items include halogen light bulbs, live animals, and endangered plants.

Check eBay's prohibited and restricted items list for the complete guidelines.

How to set up an eBay account to sell

Creating an eBay seller account takes about five minutes. Here's how to set up your account and start listing:

1. Go to eBay.co.uk and click 'Register'
2. Choose between a personal or business account (see below for guidance)
3. Enter your details and click 'Create account'
4. From the 'My eBay' menu, select 'Selling' to access your seller dashboard
5. Click 'List an item' to create your first listing
6. Complete seller registration by verifying your phone number
7. Link your bank account or payment method to receive funds

Once verified, you can start listing and selling immediately.

Personal vs business account: which should you choose?

Choose a personal account if you're selling occasionally or clearing out unwanted items. A business account suits regular sellers who plan to buy stock specifically to resell.

Key differences:

• Personal account: simpler setup, ideal for casual selling under £1,000 per year
• Business account: required if selling is your trade or profession, gives access to business tools and invoicing features
• Tax implications: business sellers must register with HMRC if earnings exceed the £1,000 trading allowance

You can upgrade from personal to business later if your selling grows.

Listing items for sale

Creating a listing takes around 10 minutes once you know what you're selling. From the Seller Centre, click 'Create listing' and follow these steps:

1. Search for your item using specific keywords; eBay will suggest matching products to auto-fill details
2. Upload clear, well-lit photos (at least 500 pixels) and add a video if possible
3. Write a descriptive title using keywords buyers search for
4. Select the correct category and fill in item specifics like size, colour, and brand
5. Describe your item's condition honestly, noting any flaws
6. Set your price and choose a format: auction, Buy It Now, or accept offers
7. Add shipping options with costs and delivery timeframes
8. Specify your returns policy and accepted payment methods
9. Preview your listing and click 'List it' to publish

For detailed guidance, see eBay's listing tips.

Optimising your listings

Better listings attract more buyers and improve your search ranking on eBay. Apply these optimisation tips to stand out:

• Write keyword-rich titles: use specific terms buyers search for, stick to objective descriptions, and use standard capitalisation without special characters
• Take quality photos: use natural lighting, show multiple angles, and include close-ups of any flaws or details
• Describe items thoroughly: include measurements, materials, condition, and any defects; honest descriptions reduce returns
• Price competitively: check completed listings to see what similar items sold for, then price accordingly
• Offer free shipping: buyers prefer free postage; factor the cost into your item price if needed
• Set clear policies: specify delivery times, returns window, and payment methods upfront
• Respond quickly: fast replies to questions improve your seller rating and build buyer confidence

How does shipping work on eBay?

eBay shipping lets you charge buyers separately or include postage in your item price. Seven in ten UK buyers prefer free shipping, so building costs into your price often increases sales.

Shipping options on eBay:

• Calculated shipping: eBay estimates costs based on buyer location and package weight
• Flat rate shipping: you set a fixed postage cost for all buyers
• Free shipping: you absorb postage costs and factor them into your item price

To set up shipping, add costs when creating each listing or create postage tables in your Account settings.

eBay requires you to post items within your stated handling time and use the delivery service the buyer selects. Pack items securely to avoid damage claims and negative feedback.

How do you get paid on eBay?

Payouts from eBay go directly into your linked bank account. Once a buyer payment is confirmed, it usually takes about a day for this payment to become available for payout. If you schedule payouts daily, it takes around two days from when the buyer payment is confirmed to initiate the payout.

Read eBay's guidance on getting paid for more on this.

Handling customers on eBay

Good customer service improves your seller rating and helps you win the Buy Box. Buyers check seller feedback before purchasing, so responsive communication directly affects sales.

Customer service essentials:

• Respond quickly: answer questions within 24 hours to build buyer confidence
• Communicate proactively: send tracking details and delivery updates
• Pack securely: use appropriate packaging to prevent damage during transit
• State policies clearly: display shipping times, returns window, and refund terms in every listing

To contact a buyer:

1. Go to the eBay customer service help page
2. Select the relevant order

For bidders on active auctions:

1. Use Advanced Search to find their username
2. Click 'Contact member'

To issue a refund:

1. Open Seller Hub
2. Find the order
3. Select 'Send refund' from the dropdown menu
4. Enter the amount

eBay may issue refunds on your behalf in some dispute cases. You can learn more on eBay's refund guidance page.

Do sellers have any protection on eBay?

eBay seller protection covers you against abusive buyers, non-payment, and unfair feedback. When protection applies, eBay refunds your fees and removes negative reviews.

Seller protection covers situations where:

• a buyer returns an item in worse condition than sent
• a buyer retracts a bid or fails to pay
• a buyer requests something not specified in your listing
• delivery issues occur outside your control

To qualify for protection, you must ship within your stated handling time and honour your returns policy.

Protect yourself further by:

• writing clear, accurate shipping and returns policies
• documenting item condition with photos before posting
• reporting abusive buyers to eBay immediately
• keeping proof of postage for every order

Read the guidance on eBay seller protection for further details.

How to sell on eBay internationally

You can sell to international buyers on eBay by enabling global shipping options in your listings. This expands your customer base beyond the UK, though costs and complexity increase.

International selling considerations:

• Additional fees: eBay charges international selling fees on cross-border transactions
• Higher postage costs: international shipping is more expensive; decide whether to absorb or pass on costs
• Customs declarations: items over certain values require customs forms and may incur import duties for buyers
• Longer delivery times: set realistic handling and delivery estimates for international orders

To enable international shipping:

1. Click 'Show international services and options' when creating a listing
2. Choose flat rate or calculated postage based on destination

Read more about how to sell on eBay internationally.

How to grow your eBay business

Growing your eBay business requires consistent effort across listings, marketing, and customer experience. These strategies help increase visibility and sales:

• Use promoted listings: pay to boost your items in search results; you only pay when the item sells
• Optimise for eBay search: include relevant keywords in titles and descriptions to rank higher in results
• Promote on social media: share listings on Instagram, Facebook, or TikTok to drive external traffic
• Ship quickly: fast dispatch improves your seller rating and increases repeat customers
• Request reviews: polite follow-up messages encourage buyers to leave positive feedback

Track your progress using eBay's Seller Hub analytics to see which strategies deliver results. You can also experiment with eBay search engine optimisation (SEO) to improve your listings.

How to track your eBay income

UK sellers have a £1,000 tax-free trading allowance. Earnings below this threshold are exempt from HMRC reporting. Once you exceed £1,000, your eBay income becomes taxable and you'll need to file a Self Assessment tax return.

Tax essentials for eBay sellers:

• Under £1,000: exempt from HMRC reporting
• Over £1,000: register for Self Assessment and report your trading income
• Keep records: track all sales, fees, and expenses throughout the year
• Claim expenses: deduct eBay fees, postage costs, and packaging from your taxable profit

Start tracking your income early. Accurate records make tax time simpler and help you understand your actual profit margins. When you notice your business nearing the side hustles tax threshold, start preparing your records in time to complete an Income Tax Self Assessment Return.

Track your eBay sales with Xero

Accounting software simplifies eBay selling by automatically tracking income, fees, and expenses. Xero connects to your eBay account through integrations like A2X, syncing sales data for accurate bookkeeping.

With Xero, you can:

• see real-time profit after eBay fees and postage costs
• reconcile eBay payouts with your bank account automatically
• generate reports for Self Assessment tax returns
• track expenses like packaging and shipping supplies

Sole traders earning under £50,000 can use Xero Go for simple income and expense tracking. For growing eBay businesses, Xero's full accounting software for ecommerce businesses provides invoicing, VAT tracking, and cash flow forecasting.

See how much time you can save on eBay bookkeeping. Get one month free.

FAQs on selling on eBay

Here are quick answers to common questions about selling on eBay.

What are the disadvantages of selling on eBay?

eBay's main drawbacks include fees of 10–15% per sale, competition from other sellers, and the risk of difficult buyers or returns. You also have less control over branding compared to your own website.

What is the £5000 rule on eBay?

From 2024, eBay reports sellers to HMRC if you receive over £5,000 in gross payments or complete more than 30 transactions. This is simply an information-sharing requirement between platforms and HMRC, separate from your actual tax obligations.

Can I sell on eBay as a hobby or do I need a business?

You can sell casually on eBay using a personal account and a simple setup. However, if you regularly buy items to resell for profit, HMRC may consider this trading, requiring you to register for Self Assessment.

How long does it take to get paid on eBay?

Payouts typically reach your bank account within one to two working days after the buyer's payment clears. New sellers may experience longer holds while eBay verifies account activity.

What happens if a buyer doesn't pay?

Open an unpaid item case through eBay's Resolution Centre if a buyer fails to complete payment within four days. eBay will prompt the buyer to pay. If the buyer remains unresponsive, you can relist the item and receive a fee credit.