Buying an eBay sole trader business

[Andrew_D]

I'm looking at potentially buying an eCommerce business which trades 95% via eBay, it is currently run as a sole trader.

The owner advises that eBay do not allow transfers of ownership of eBay stores, so his plan is to convert his business to a Ltd company and then sell that company.

Has anyone got any experience in this area and can advise whether this is indeed the best/only way to approach it or have any other suggestions? Thanks.

 

[Solve My Problem]

No you can't transfer ownership.

That would be the only way but I would not be surprised if eBay blocked it. He would have to setup a LTD, setup bank accounts etc.. then try and change the ownership. All simple enough but with money laundering laws there are often a bunch of hoops. I helped a client recently and they had so much hassle with Amazon and eBay they ended up giving up.

You will then need to jump through hoops with bank transfer, director etc.. you will then have to trade as a ltd company and make sure you have an accountant or use proper accounting software as Making tax Digital is compulsory now.

I would want to see the ltd company setup, and eBay ownership transferred before I invested any time or money.

 

[tertius]

I'm not going to give you the answer you want but do have direct experience with the exact same problem.
The biggest problem is that the eBay business account is tied to an individual person, and there seems to be no way you can completely change that over to someone else. We managed to change the branding / address /name etc etc on the store but in the background it's still linked to the old owner's business and eBay told me eventually that it cannot be moved. Apparently because ebay is based on trust / feedback etc. that relates to the old owner and a new owner cannot 'inherit' that experince.
P.S. we are therefore having to wind the ebay side down, and are not likely to reinstate it. Their loss!
be very glad if anyone else can help solve the issue

 

[fisicx]

There was someone here a few years back had paid for an eBay business and was subsequently blocked by eBay They never got their money back and were unable to trade as their existing business account was also blocked.

Don’t do it.

 

[Nicola78]

Recently i face same issue. Ask to many coleage and google a lot but not success.

I'm not going to give you the answer you want but do have direct experience with the exact same problem.
The biggest problem is that the eBay business account is tied to an individual person, and there seems to be no way you can completely change that over to someone else. We managed to change the branding / address /name etc etc on the store but in the background it's still linked to the old owner's business and eBay told me eventually that it cannot be moved. Apparently because ebay is based on trust / feedback etc. that relates to the old owner and a new owner cannot 'inherit' that experince.
P.S. we are therefore having to wind the ebay side down, and are not likely to reinstate it. Their loss!
be very glad if anyone else can help solve the issue

 

[Winx]

I presume part of the terms of the sale would be for this sole trader to cease trading in the same or similar area of goods that will be sold, so in 6 months time he wont be doing it all over again?