As a seller, if eBay closed down tomorrow, what would you do?

[*crikey*mate*]

I know it is unlikely, but it's not impossible. Bigger companies than eBay have fallen, dissolved or just stopped operating.

or even on a smaller scale, if eBay stopped you (as an individual) trading tomorrow.

Some sellers rely on the income derived from their eBay Selling accounts, perhaps not realizing, that they have no lease or guaranteed length of future tenure and no guarantee that they will even be trading next week.

I doubt that a bank would lend money based on income derived from eBay unless it was atatched to a B&M store, but even then, could not see them giving too much credence to those sales.

And the reality is, that you have very little to sell, just the cost price of existing stock, no lease, no fixed assets such as a building, no intangible assets, no transferable goodwill and no transferable reputation.

When you look at it like that, it's not really a very stable or reliable source of income, is it?

[amber-eyed-girl]

If you were an established seller, chances are you have another trading platform in place such as your own website or through social media.

Particularly if you were one of the sellers who regularly complain about eBay and its practices.

If you did not, then you take your buyers list, and email them, pointing them in the direction of your new website, created upon the demise of eBay.

You still have your stock.

Most people if caught unawares and unprepared, could move to gumtree while setting up their own website.

People who rely upon eBay for income will have a strategy in place for continued web sales.

[yarmak]

ebay is not a very stable or reliable source of income now and they are trading Crikey

meh

Dave

[amber-eyed-girl]

In terms of loans and financing a bricks and mortar, or alternate web store, banks will lend for business.

They need to be shown that your sales were of a level to maintain sufficient income to repay and be a success.

It would be the same as for any other start up business loan, but you could be better placed, if you had a reasonable annual turnover, tax returns to prove it, and a client list.

Any reasonable efforts to show the bank you had a viable operation could secure a loan.

The alternative is to redraw from a home mortgage or existing loan if you have that facility, and there are no contractual limitations on the use of those funds.

Or...private loans. Or a guarantor. There are many ways.

Even government assistance may be available (it used to be available for the unemployed with a good idea for a business).

[chameleon54]

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@crikey*mate wrote:

Some sellers rely on the income derived from their eBay Selling accounts, perhaps not realizing, that they have no lease or guaranteed length of future tenure and no guarantee that they will even be trading next week.

I doubt that a bank would lend money based on income derived from eBay unless it was atatched to a B&M store, but even then, could not see them giving too much credence to those sales.

.............................................................................................................................................................................................................

I  am certainly aware of the risk that ebay could shut down my account tommorow for any number of reasons, or it could come under cyber-attack. ( dont laugh it certianly does happen ), or I could have technical issues.  I have taken steps to protect myself by splitting my business into several completly seperate ebay accounts ( with seperate paypal, bank accounts and ownership structure ) This provides me with an element of security. If one account is out of action, I concentrate on the others. It also has the advanyage that I can income split for tax purposes and with three accounts I can sell up to  $225,000 before I have to get involved in the GST quagmire ( I mean system ).

As for banks lending against ebay income, I have taxation records showing that ebay is far and away my main source of income. My bank has accepted the income in the same way as any other form of income for loan purposes. It did not even raise an eyebrow with them, so would suggest if you have a proven track record of consistant profits, all recorded by an accountant and lodged with the ATO it should not be a problem.

As for your other point, what would I do if ebay shut tommorow ??? I would probably spend a lot more time fishing.  ( But I would miss our robust discussions Crikey*mate )

[*crikey*mate*]

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@amber-eyed-girl wrote:
In terms of loans and financing a bricks and mortar, or alternate web store, banks will lend for business.

They need to be shown that your sales were of a level to maintain sufficient income to repay and be a success.

It would be the same as for any other start up business loan, but you could be better placed, if you had a reasonable annual turnover, tax returns to prove it, and a client list.

Any reasonable efforts to show the bank you had a viable operation could secure a loan.

The alternative is to redraw from a home mortgage or existing loan if you have that facility, and there are no contractual limitations on the use of those funds.

Or...private loans. Or a guarantor. There are many ways.

Even government assistance may be available (it used to be available for the unemployed with a good idea for a business).

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grrrrr, can't use format features on a post made on iPad..........

but for an alternate webstore, you probably have some control over the entity offering the platform, don't you? Don't you pay a fee tto use that site, like a lease kind oif thing? eBay is offering you no such thing. All we are doing is buying a service off them which they provide. (It's even in their T&C that they will not guarantee the continuity of their service and they have no responsibility for compensation for failing to provide that service)

so how do you, a sole trader take that to a bank? (a business account on eBay only means that you are allowed to add your business name to your account. The contract for tenure is between a sole trader and eBay.)

for an eBay account, the only assets you have are your actual stock. You don't even have a l;ease, so you have no way to guarantee a bank that you can create profit to satisfy the loan in the future.

[*crikey*mate*]

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@chameleon54 wrote:

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@crikey*mate wrote:

Some sellers rely on the income derived from their eBay Selling accounts, perhaps not realizing, that they have no lease or guaranteed length of future tenure and no guarantee that they will even be trading next week.

I doubt that a bank would lend money based on income derived from eBay unless it was atatched to a B&M store, but even then, could not see them giving too much credence to those sales.

.............................................................................................................................................................................................................

I  am certainly aware of the risk that ebay could shut down my account tommorow for any number of reasons, or it could come under cyber-attack. ( dont laugh it certianly does happen ), or I could have technical issues.  I have taken steps to protect myself by splitting my business into several completly seperate ebay accounts ( with seperate paypal, bank accounts and ownership structure ) This provides me with an element of security. If one account is out of action, I concentrate on the others. It also has the advanyage that I can income split for tax purposes and with three accounts I can sell up to  $225,000 before I have to get involved in the GST quagmire ( I mean system ).

As for banks lending against ebay income, I have taxation records showing that ebay is far and away my main source of income. My bank has accepted the income in the same way as any other form of income for loan purposes. It did not even raise an eyebrow with them, so would suggest if you have a proven track record of consistant profits, all recorded by an accountant and lodged with the ATO it should not be a problem.

As for your other point, what would I do if ebay shut tommorow ??? I would probably spend a lot more time fishing.  ( But I would miss our robust discussions Crikey*mate )

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laughing at the fishing... that really did make me smile. (My OH just semi retired, so he gets to fish a bit these days)

Interesting to know about the banks, I'm really going to need something to help me get my head around that though. Not saying they don't, but I can't see why they would iykwim. It'd be worse than an unsecured loan.

Are we talking smallish loans here, or ones to get a house or a car etc?

and I never thought of cyber attacks LOL - you're "imagination" is far greater than mine. You know my thought patterns to be thinking about this stuff. Until that thread, and I really had to think about it, I never realized how unsecure an eBay business/income is.

[amber-eyed-girl]

Crikey, did you read all my post?

Extension of another preexisting loan

A loan guarantor

These are acceptable to banks, as are tax returns and stock.

This is no different to a store that does not own the building it has floorspace in. All they have is the name, the stock, the client list and annual turnover figures too. And the outgoings of a lease.

eBay as a platform will mean nothing either way to the bank...it is your returns and your assets.

eBay has only provided the previous exposure to build that.


Websites can turn over millions. Most start with nothing.

[*crikey*mate*]

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@amber-eyed-girl wrote:
Crikey, did you read all my post?

Extension of another preexisting loan

A loan guarantor

These are acceptable to banks, as are tax returns and stock.

This is no different to a store that does not own the building it has floorspace in. All they have is the name, the stock, the client list and annual turnover figures too. And the outgoings of a lease.


Websites can turn over millions. Most start with nothing.

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i did read it. (I even tried to do intext formatting/responses, to address each point, but cos YOURE ON AN IPAD FGS it wouldn't let me!!!!!!!!!

and yes, I have heard of facebook, so aware that a website can generate millions by starting with nothing.....

I'm not talking websites in general, I am talking eBay account only.

on eBay you do not have a lease. You do not have a guaranteed future platform opn which to trade.

even a B&M, the length of your lease determines/contributes significantly towards the worth of your business, so I can't see there is any significant value in an eBay business (see my analysis on the other thread) to secure finance.

any of the above alternatives rely on another form of security, not your eBay income.

[chameleon54]

Unfortunatly the cyber attack thing is only too real..... Confession time - I have experienced this first hand, ( large scale 100,s per day,  unwanted attention on my site ) not pleasant at all and shut down my main account for several weeks. As for the bank loan thing we are talking about the purchase of a commercial property.. As previously stated the bank looked through my accountants taxation records, didnt even break a sweat and approved the loan. It just didnt seem to be a drama. I have had B & M businesses in the past and an extensive loan history over a long period of time. I imagine that probably counts in the total picture, but at the end of the day it is the ebay income that pays the loans..