How Old Do You Have to be to Sell on eBay

Thinking about starting your eBay selling journey? If yes, then one of the first questions you might have in your mind is how old do you have to be to sell on eBay.

No matter if you’re a teen looking to make some extra cash or a parent wondering if your child can start his own online reselling business on eBay, understanding eBay’s age requirements is important.

In this post, we’ll understand the age requirement for selling on eBay. Not just that, we will also discuss what happens when an underage seller gets caught selling on eBay. Lastly, we will explain how to legally sell on eBay as a minor without violating any of the marketplace’s policies.

So, without further ado, let’s get started:

How Old Do You Have to Be to Sell on eBay?

To sell on eBay, you must be at least 18 years old. This age requirement ensures eBay sellers can responsibly manage their accounts, comply with policies, and maintain the platform’s integrity.

However, there are two other major reasons why you must be 18 or older to create a seller account on eBay that are:

1. You must be able to enter into legally binding contracts.

eBay’s requirement for sellers to be at least 18 years old is primarily rooted in contract law. When you list an item for sale on eBay, you’re basically entering into a contract with buyers on eBay. This contract becomes binding when a buyer purchases your item.

In most jurisdictions, minors (those under 18) cannot enter into legally binding contracts. This is because the law assumes that minors may not fully understand the implications of their actions or have the capacity to make informed decisions about complex transactions.

If a minor is entering into a contract, it would typically be considered “voidable.” This means the minor could potentially back out of the agreement without consequences, which could create problems for both eBay and its buyers.

2. eBay requires sellers to provide valid financial information for receiving payments.

eBay’s payment system requires sellers to provide valid financial information, such as bank account details or credit card information. This is a must for receiving payments from buyers and paying eBay’s selling fees.

Financial institutions have their own age restrictions for opening accounts and obtaining credit cards, which are typically set at 18 years old. This aligns with eBay’s age requirement and ensures that sellers can have full rights and resources to sell on the marketplace.

Moreover, managing financial transactions involves responsibilities and risks that may be deemed too complex for minors. This includes understanding tax implications, managing refunds, and dealing with disputes.

The 18-year age limit also serves as a protective measure for both eBay and young individuals. It helps prevent the exploitation of minors and ensures that sellers are legally accountable for their actions.

It’s worth noting that while these restrictions are in place to protect all parties involved, they can be frustrating for entrepreneurial young people who want to start selling online.

Also Read: eBay Scams & How to Protect Yourself from Them

Does eBay Verify Age?

When creating a new account on eBay, sellers are not immediately required to provide proof of age. This is because eBay wants the sign-up process to be smooth while making it easier for new sellers to join the platform. However, this doesn’t mean that eBay is unaware of or unconcerned with the age of its sellers.

As part of their security and verification processes, eBay does require new sellers to submit identification documents and go through a verification process. This step helps in maintaining the integrity of the platform and preventing fraudulent activities. During this process, eBay gains access to information that can be used to verify a seller’s age.

The submission of official identification documents, such as a driver’s license, federal/state-issued ID card, or passport, provides eBay with the means to confirm various details about the account holder, including his age. This information becomes part of the seller’s eBay account data, allowing eBay to have a record of the seller’s age, even if it wasn’t explicitly asked for during the signup process.

What Will Happen if a Minor Get Caught Selling on eBay?

1. Permanent Account Suspension

If a minor is caught selling on eBay, the most immediate consequence is likely to be account-related. eBay requires its sellers to be at least 18 years old, and violating this policy can result in swift action. If the underage status is confirmed, eBay will likely terminate the account permanently.

Account termination comes with several repercussions. Any active listings would be removed from the marketplace, disrupting ongoing sales. Funds in the associated payment account will also be held or forfeited. The minor may also face challenges creating new accounts in the future, as eBay could flag his information to prevent repeat violations.

2. Penalties

On the legal front, the consequences can be more complex for an eBay seller who is underage. Contracts made by minors are generally considered voidable, which means buyers could seek refunds for their purchases. This could lead to financial complications for the minor seller.

Parents or guardians might find themselves in a difficult position as well. They could be held responsible for any fraudulent activities or unfulfilled orders resulting from their child’s eBay business. This parental liability adds another layer of potential legal and financial consequences.

Moreover, consumer protection issues may arise if the minor misrepresents products or fails to deliver items as promised. Such actions could violate consumer protection laws, potentially leading to more serious legal troubles.

The severity of these consequences often depends on various factors. The scale of the selling operation, whether any intentional deception was involved, the types of items being sold, and the amount of money involved all play a role in determining the extent of the repercussions.

How to Sell on eBay as a Teenager?

1. Under Parental Supervision

This is the most common and straightforward option for teenagers under 18 to sell on eBay. It also complies with eBay’s age restrictions, requiring sellers to be at least 18 years old.

Parents create and own the eBay account, taking legal responsibility for all transactions. They can add the teen as an authorized user and monitor all activities.

This method offers a valuable mentorship opportunity, allowing parents to guide teens through the selling process and help them build their own online business.

2. Creating an LLC

Forming a Limited Liability Company (LLC) is a more complex option but can offer additional benefits for aspiring eBay sellers who are under 18. It provides liability protection by separating personal and business assets.

An LLC lends credibility to the business and also offers certain tax benefits. However, age restrictions for LLC ownership vary by state in the US, and parental involvement may still be required.

Even with an LLC, eBay’s age policy would likely still apply, requiring adult supervision for sellers under 18. This option involves more paperwork, legal requirements, and associated costs.