@cyndykittprod -

Did you never have to verify yourself to Paypal? They required proper photo ID some years ago after I opened my shop and started getting lots of sales.

If you were to join other selling sites such as Amazon or Etsy, they all require similar photo identification (BEFORE you can even open an account), so this is not an unusual step for a large site to be taking. 

I don't see why it's such a big deal to at least get a passport at a minimum and certainly wouldn't be closing up shop because of it. Paying a $100 for formal identification is worth it to carry on earning an income, even if the passport never gets used.

Your choice at the end of the day though.