Selling on eBay: accounts, China-based sellers, fees, 1099-K, and taxes on used items and collectibles (2026)

eBay is an open marketplace: sellers set prices, ship their own goods and are the seller of record; eBay charges final value fees, manages buyer payments and pays sellers out, and collects sales tax in the states that have one. U.S. individuals and companies register on ebay.com directly; companies in mainland China, Hong Kong and Taiwan usually onboard through eBay Greater China (ebay.cn) and sell on ebay.com the same way.

Unlike Amazon or Walmart, a large share of eBay is used goods, collectibles, refurbished items and personal clear-outs. So the most common tax question isn't which states hold your inventory, but whether a given payment is income at all. The table below puts the four kinds of sellers side by side.

Description: each row is a kind of seller, with the account type, what eBay asks for, how it's reported and the most common mistake.

Seller	eBay account	What eBay asks for	How it's taxed	Most common mistake
Individual clearing out personal items	Personal	SSN, address, date of birth, bank account	Sales at a loss aren't taxed; gains go on Form 8949 and Schedule D	Treating a 1099-K as income and overpaying
Collectibles seller (cards, coins, watches)	Personal or business	Same; high-value items go through Authenticity Guarantee	Investors report capital gains, collectibles up to 28% long-term; frequent trading may be a business	No proof of cost; reporting a business as investing
U.S. reseller (sneakers, thrift, liquidation)	Personal or business	Heavy new-item sales trigger INFORM verification	Schedule C, 15.3% self-employment tax, inventory and cost of goods sold	Reporting only deposits; expensing all purchases at once
Chinese cross-border seller	Greater China business account, or a U.S. company's business account	Business license, legal representative ID, proof of address; a U.S. company needs its EIN letter	A Chinese company gives a W-8BEN-E; a foreign-owned U.S. LLC files 5472; U.S. warehouse stock raises U.S. business income questions	Filing a W-9 under a foreign-owned LLC's EIN; missing 5472

• Managed payments: since 2021 eBay collects all buyer payments and pays sellers net of fees to a bank account (or debit card). Greater China sellers have been paid through eBay's arrangement with Payoneer since April 2021; current payout options are shown in your seller account.
• eBay balance: starting November 4, 2026, eBay is gradually rolling out eBay balance to U.S. private sellers and sole proprietors. Sale proceeds land in a balance that can pay for labels and promotions; payouts default to on-demand, with automatic payouts still available. Money in the balance is your income when earned, not when it reaches the bank.
• One platform, many destinations: ebay.com listings can sell to international buyers. U.S. sellers use eBay International Shipping; sellers shipping from China follow the SpeedPAK policy.

Individuals use a personal account with their name, address, date of birth and SSN. Companies and sole proprietors operating as a business use a business account with the legal name, any DBA, the EIN, a physical business address and identity details for beneficial owners, directors and officers. A personal account can be upgraded to business, not the other way round. The bank account must match: a business account needs a business checking account.

Description: each row is a requirement, compared for personal and business accounts.

Item	Personal account	Business account
Who it's for	People selling as individuals	Corporations, LLCs, partnerships, sole proprietors, nonprofits
Tax ID	SSN	EIN (sole proprietors can also use a business account)
Address	Residential, no PO boxes	Physical business address, no PO boxes
Identity details	You	Primary contact, beneficial owners, directors, partners, officers and others with control
Documents that may be requested	Passport, driver's license, state ID, green card, work permit; possibly a selfie	IRS-issued EIN letter (a self-completed W-9 doesn't count), first page of a recent return, business license, formation documents, Good Standing
Payout account	Checking account or Visa / Mastercard debit card in your name	Business checking account in the business's name
Switching	Can upgrade to business	Can't go back to personal

• When eBay verifies: at registration, before using eBay balance, after a certain sales amount, when unusual activity shows up, and after you change information. Payouts can stop until verification clears.
• Bank verification: logging in to your bank is fastest; two micro-deposits (2–4 business days) or an original PDF bank statement no more than three months old also work. Screenshots and voided checks don't.
• INFORM Consumers Act: a "high-volume seller" with 200 or more sales of new or unused items totaling over $5,000 in 12 months on eBay's U.S. site must have bank account, tax ID, phone and email verified, plus a government ID for business sellers, and recertify every year. At $20,000 in annual revenue, the seller's name and address generally appear to buyers, with an exception process. Used items don't count toward the threshold.
• Keep everything consistent: a personal account's proceeds, your Schedule C and your bank account should line up; for a company, the eBay account, EIN letter, W-9 or W-8 and bank account all carry the company's legal name.

Chinese companies usually apply through eBay Greater China's business recruitment channel: any company type except an individual business (个体工商户), registered for at least one year, with no other active eBay business account. You submit company details and a business plan; eBay matches you with an account manager by location and main category and normally responds within seven business days. Alternatively, you open a business account on ebay.com with your own U.S. company and are taxed as a U.S. company.

Description: each row is an approach, with the entity, payouts, logistics and the tax points to watch.

Approach	Entity	Payouts	Logistics	Tax points
Chinese company, direct shipping	Mainland, Hong Kong or Taiwan company with a Greater China business account	eBay managed payments via Payoneer	SpeedPAK or another eBay-approved service booked in eDIS; 90% compliance for U.S. orders	W-8BEN-E; with no U.S. inventory or staff, generally no U.S. income tax return; duties depend on the shipping arrangement
Chinese company + U.S. warehouse	Same	Same	Goods stocked in a U.S. warehouse and shipped domestically	U.S. inventory may create U.S. business income and state tax questions, judged on the facts and the U.S.–China treaty
U.S. company	U.S. LLC or corporation with an ebay.com business account	U.S. bank account	Ships from U.S. stock; eBay International Shipping available	Foreign-owned LLCs file 5472; decide W-9 vs. W-8 first; buying from the Chinese parent needs arm's-length pricing

• Eligibility (eBay's recruitment page, 2026): no individual businesses; the company must be at least one year old; it must be new to eBay or have stopped selling on eBay for over a year, with no other active business account; categories must be approved; eBay may ask for more documents or a site visit, and false information gets an application rejected or terminated.
• Typical documents: a valid business license whose name and region match the account, the legal representative's ID, the registrant's ID, and proof of address matching the company name and address. The account manager's written list governs.
• Fees: final value fees on ebay.com are the same as for U.S. sellers. Sellers registered in Greater China also pay an international fee when the buyer is outside their registered region: 1.30% for U.S. and Canadian buyers, falling to 0.95% down to 0% with prior-month sales of $3,000 or more (Above Standard required). The currency conversion charge is 2.75%. Your seller account shows the rates that apply.
• SpeedPAK and eDIS: SpeedPAK is eBay's official shipping program for Greater China sellers, used after registering and validating an eDIS (eBay's logistics platform) account. For items located in mainland China sold to U.S. buyers there is no value floor, and at least 90% must ship with SpeedPAK or another approved solution; every Greater China order needs an acceptance scan and valid tracking within the handling time. Non-compliance can mean removed listings, lower limits or suspension. SpeedPAK rates changed several times in 2026; eDIS notices govern.
• Some programs are U.S.-only: Authenticity Guarantee is mostly limited to U.S. sellers (with some Japan and India sellers allowed for watches and jewelry); the eBay Refurbished program requires U.S.-based sellers; eBay International Shipping requires items located in the U.S. Selling in those categories means either a U.S. entity with U.S. stock, or doing without.

Most categories pay a final value fee on the total sale amount, including shipping and sales tax: 13.6% up to $7,500 without a Store, 12.7% up to $2,500 with a Basic or higher Store, 2.35% above those amounts, plus $0.30 or $0.40 per order. The first 250 listings a month are free, then $0.35 each. Stores cost $4.95 to $2,999.95 a month on yearly plans. eBay made no change to the base U.S. rates in 2026; the fee pages govern.

Description: each row is a fee, shown without a Store and with a Basic or higher Store.

Fee	No Store / Starter	Basic Store and up	Notes
Final value fee, most categories	13.6% up to $7,500, then 2.35%	12.7% up to $2,500, then 2.35%	On the total sale, including shipping and sales tax
Per-order fee	$0.30 ($10 or less) / $0.40	Same	Per order
Sneakers ($150 and up)	8%, no per-order fee	7%, no per-order fee	Under $150: 13.6%
Books, movies, music	15.3%	15.3%	Vinyl 12.7% with a Store
Trading cards, CCGs, comics	13.25%	12.35%	2.35% above $7,500
Watches	15% up to $1,000, then 6.5%, then 3%	12.5%, 4%, 3%	Tiered
Women's handbags	15% up to $2,000, then 9%	13%, then 7%
Store subscription (per month, yearly plan)	Starter $4.95	Basic $21.95, Premium $59.95, Anchor $299.95, Enterprise $2,999.95	Monthly plans cost more; Enterprise is yearly only
International fee	1.65% for U.S.-registered sellers	Same	Not charged when shipping through eBay International Shipping
Currency conversion	3.25% for U.S.-registered sellers	Same	2.75% for Greater China sellers
Dispute fee	$20 per dispute	Same	When the seller is found responsible

• Top Rated Plus: 10% off final value fees (not the per-order fee), for Top Rated sellers with same- or one-business-day handling and free returns of 30 days or more.
• Surcharges for poor performance: Below Standard sellers pay an extra 6% final value fee, 7% after four or more consecutive months; a "very high" item-not-as-described rate adds 5%, then 6%.
• Deals taken off eBay: steering a buyer off eBay still triggers a final value fee on the total and can restrict the account.
• Book fees separately: final value fees, Promoted Listings, labels and Store subscriptions are business expenses. When they come out of payouts, record gross sales and then the fees, so the books tie to the 1099-K.

Is a Store worth it? (example, hypothetical numbers)

Example (hypothetical numbers, to show the method): $4,000 a month in sales, most categories, every item under $2,500. Without a Store the final value fee is about $4,000 × 13.6% = $544; with a Basic Store ($21.95 a month on a yearly plan) it's about $4,000 × 12.7% = $508. That saves $36, or about $14 net of the subscription, and adds 1,000 free fixed-price listings. Below roughly $2,400 a month, the fee savings don't cover a Basic Store, and Starter or no Store usually makes more sense.

eBay rates sellers on the 20th of each month as Top Rated, Above Standard or Below Standard. Top Rated means a transaction defect rate of 0.5% or less, cases closed without seller resolution at 0.3% or less, late shipments at 3% or less, valid tracking uploaded on time for at least 95% of orders, and at least 100 transactions and $1,000 with U.S. buyers in the past 12 months. A defect rate above 2% can drop you to Below Standard.

Description: each row is a metric, with the Top Rated requirement and the Above Standard floor.

Metric	Top Rated	Above Standard minimum
Transaction defect rate	0.5% or less (and no more than 3 buyers)	2% or less (counts toward Below Standard only with more than 4 buyers)
Cases closed without seller resolution	No more than 2 or 0.3%	2 or 0.3%, whichever is higher
Late shipment rate	No more than 5 or 3%	No separate floor
Tracking	95%+ uploaded within handling time and validated by the carrier	—
Selling activity	Account at least 90 days old; 100 transactions and $1,000 with U.S. buyers in 12 months	—
Evaluation period	Past 3 months if over 400 transactions, otherwise past 12 months	Same

• What Below Standard costs: lower search placement, possibly lower limits, no Promoted Listings, funds possibly held until tracking shows the item moving, no deductions from refunds for items returned used or damaged; higher final value fees from the next month; over time, a Store downgrade and account restrictions.
• Harder for cross-border sellers: long transit times make late shipments and item-not-received cases more likely. SpeedPAK tracking and acceptance scans are both a shipping-policy requirement and the key to keeping your rating.
• The tax angle: held funds, refunds, dispute fees and surcharges are booked as they happen; funds still held at year-end are income you've earned but not yet received.

As a marketplace facilitator, eBay calculates, collects and remits sales tax on eBay orders in every state with a sales tax listed on its help page (Alabama through Wyoming) and in Puerto Rico, whether or not you're in the U.S. You can't opt out, and there's no charge. Off-eBay sales, and income or franchise tax in states where you keep inventory, are not eBay's job.

• Only eBay orders: sales tax on your own website, other marketplaces such as Whatnot, or in-person sales is yours to assess, register for and file. Most states use a $100,000 annual economic nexus threshold, and some count marketplace sales toward it (North Carolina: yclcpa.com/salestax; tax tools for your own site: yclcpa.com/stripetax).
• Tax on seller fees: a few states tax marketplace fees. eBay's help page notes Texas taxes part of the final value fee, with the exact portion still being worked out with the Texas Comptroller.
• Collected tax isn't your income: sales tax eBay collects and remits stays out of revenue. Check eBay's annual reports for how the 1099-K gross is built and list collected tax separately in the reconciliation.
• Cross-border sellers with U.S. stock: inventory in a state's warehouse gives you physical presence there, with possible income tax, franchise tax or registration (details: yclcpa.com/fba).

eBay issues a 1099-K at the federal threshold: more than $20,000 in payments and more than 200 transactions in a year. A 2021 law would have lowered it to $600, and the IRS phased that in at $5,000 for 2024, then planned $2,500 for 2025 and $600 for 2026; the One, Big, Beautiful Bill, signed July 4, 2025, restored $20,000 and 200 retroactively. Ten states use lower thresholds. The threshold decides whether eBay files the form, not whether you owe tax.

Description: rows run in time order; the last row is the current rule.

When	What happened	eBay's federal 1099-K threshold
From 2011	Form 1099-K reporting begins	Over $20,000 and over 200 transactions
March 2021	American Rescue Plan Act: $600, no transaction count	Planned $600
2022–2023	Two IRS transition years at the old threshold	$20,000 and 200
2024	IRS phase-in: $5,000 for 2024	2024 forms at $5,000
Planned for 2025, 2026	$2,500, then $600	Cancelled
July 4, 2025	One, Big, Beautiful Bill restores the old threshold retroactively	Over $20,000 and over 200 transactions
Now (2026)	Federal threshold unchanged; 10 states lower	Over $20,000 and over 200 transactions

• Lower state thresholds: eBay lists Arkansas, D.C., Illinois, Maryland, Massachusetts, Montana, New Jersey, Rhode Island, Vermont and Virginia. Sellers there can get a 1099-K on much smaller sales.
• Timing: eBay issues the 1099-K by January 31; the electronic copy is in your seller account, and a paper copy requires opting out of e-delivery.
• Backup withholding: without a valid SSN, ITIN or EIN, or after an IRS name/TIN mismatch notice, eBay withholds 24% federal tax, plus 7% for California and 5% for Maine. It's taken from gross payouts, isn't returned if an item comes back, and is claimed on your return.
• Foreign sellers: foreign individuals and companies that provide a W-8 generally don't receive a 1099-K. For a U.S. LLC owned by one foreign person, see the entity section below.
• Reconciling: the 1099-K includes everything and excludes nothing for fees, discounts or refunds. The step-by-step reconciliation is at yclcpa.com/1099k.

If you sell a personal item for less than you paid, that's a loss: you can't deduct it, but the money isn't taxable income either. If you sell for more than you paid, the gain is taxable on Form 8949 and Schedule D. With a 1099-K, you can offset a loss sale on Schedule 1 with an income line and an equal adjustment, or report it on Form 8949, so it doesn't become income.

• Why there's no tax: tax applies to gains. A phone bought for $1,200 and sold two years later for $300 produced no gain, only a personal loss, and personal-use losses aren't deductible (IRC §165(c)). So nothing is taxed and nothing is deducted.
• How the IRS says to report it: the IRS 1099-K FAQs (updated June 2026) say to report the proceeds on Schedule 1, line 8z as "Form 1099-K Personal Item Sold at a Loss" and the cost, up to the proceeds, on line 24z with the same description; Form 8949 and Schedule D are an alternative.
• Gains are taxable: an old camera, limited sneakers or a watch sold above cost produce a capital gain, long-term if held over a year, otherwise at ordinary rates. Collectibles are taxed at up to 28% long-term (next section).
• Keep proof: purchase prices, order screenshots, card statements, photos. If the IRS asks about the 1099-K, that's what shows these were personal items sold at a loss.
• When it isn't a personal item: buying at thrift stores, liquidation or auctions to resell is done for profit and is a business, not a personal-item offset (see the reseller section). If you do both, keep separate records, or even separate accounts.

The same card sale can fall under three tax statuses: investor (holds for appreciation, reports capital gains, collectibles taxed at up to 28% long-term), dealer or reseller (buys and sells regularly for a margin, reports on Schedule C with income and self-employment tax), or hobbyist (not profit-driven; income is reported, expenses aren't deductible). Purpose, frequency and how you operate decide it, not what you call yourself.

Description: each row is a status, with how it's identified, where it's reported, the rate and the treatment of costs.

Status	Typical facts	Reported on	Rate	Costs and losses
Investor	Buys to collect, sells a few pieces after years	Form 8949, Schedule D	Over 1 year: collectibles up to 28%; 1 year or less: ordinary rates	eBay fees, grading and shipping reduce the gain; capital losses under the usual limits
Dealer / reseller	Buys often, opens boxes, grades, lists	Schedule C (or the company's return)	Ordinary rates + 15.3% self-employment tax	Costs and expenses deductible; inventory and cost of goods sold
Hobbyist	Mainly for fun, sells duplicates now and then	Schedule 1, other income	Ordinary rates	Expenses generally not deductible; only the cost of the item sold reduces income

• 28% is a ceiling: IRS Topic 409 (updated September 2026) says net capital gains from collectibles such as coins or art are taxed at a maximum 28%. If your ordinary rate is lower, the lower rate applies; higher earners may also owe the 3.8% net investment income tax.
• What counts as a collectible: the Code (IRC §408(m)) lists works of art, rugs, antiques, metals, gems, stamps, coins and alcoholic beverages, among others. Sports cards and memorabilia are generally treated as collectibles in practice; whether sneakers and streetwear are isn't settled in the rules, so don't assume 15% without looking at the facts.
• eBay Vault and PSA Vault: graded cards held in eBay's vault (now partnering with PSA) can change hands without being shipped, but each sale is still a taxable sale and the gain is reported. The vault is for U.S. buyers and sellers only, for graded cards of $250 or more. A buyer who withdraws a card may owe use tax.
• Authenticity Guarantee: from September 2026 it covers trading cards (raw and graded) of $200 or more and eligible coins of $500 or more, alongside sneakers from $100, watches from $2,000 and handbags and jewelry from $500. It's free for sellers and mostly limited to U.S. sellers.

Buying goods to resell is a business: an individual or single-member LLC reports on Schedule C and pays income tax and 15.3% self-employment tax on net profit of $400 or more. Purchases go into inventory and only what's sold becomes cost of goods sold; eBay fees, labels, packing supplies, promotions, Store subscriptions and grading fees are deductible. With steady, higher profit, look at an S corporation.

• Inventory isn't expensed on purchase: goods unsold at year-end stay in inventory and become cost when sold. In December 2025 eBay added a "Your Cost" field to listings for recording each item's cost.
• Breaks, grading, bulk lots: allocate the cost of a box or lot across the items on a reasonable basis; grading fees go into that item's cost.
• Self-employment tax: 15.3% on 92.35% of net profit, on Schedule SE.
• LLC or S corporation: an LLC mainly limits liability and doesn't change the tax by default. With steady, higher profit, an S election lets you pay yourself a reasonable salary and leave the rest free of self-employment tax, with payroll to run (yclcpa.com/scorp; choosing an entity: yclcpa.com/entity).
• 1099-NEC: from 2026, U.S. individuals you pay $2,000 or more in a year for photos, listing or packing get a 1099-NEC; collect a W-9 first (yclcpa.com/1099nec).

A U.S. tax resident can sell personally or through a single-member LLC on Schedule C, and look at an S corporation as profit grows. A U.S. LLC owned by one foreign person is disregarded for tax: the platform should get the foreign owner's W-8, not a W-9 under the LLC's EIN; it files pro forma 1120 + 5472 every year; and with U.S. inventory there may be U.S. business income. That's why many foreign sellers use a C corporation, or have the LLC elect corporate status on Form 8832.

Description: each row is a seller situation, with the usual entity, the tax form given to eBay, annual filings and points to watch.

Situation	Usual entity	Tax form to eBay	Annual filings	Watch out for
U.S. tax resident, individual or family business	Individual or single-member LLC; S election as profit grows	W-9 (SSN or EIN)	1040 + Schedule C + SE; 1120-S for an S corporation	Keep personal items, collectibles and business apart; state LLC fees (California $800)
U.S. LLC owned by one foreign person	Disregarded by default	Foreign owner's W-8BEN (W-8ECI with business income), not the LLC's W-9	Pro forma 1120 + 5472, $25,000 per missed form; owner files 1040-NR with business income	If the platform only offers a W-9, ask the platform and follow your CPA
Same, electing corporate status	LLC + Form 8832 (C corporation)	The LLC's own W-9	1120 + 5472, 21% federal tax	Generally locked for 60 months after a change; dividends to foreign owners withheld at 30%, generally 10% under the U.S.–China treaty
Foreign company + U.S. subsidiary	U.S. C corporation owned by the Chinese parent	Subsidiary's W-9	1120 + 5472; related-party pricing	Arm's-length prices for goods from the Chinese factory (§482); inventory cost capped by customs value (§1059A)
Multi-platform seller (eBay + Amazon + own site)	One company, books split by channel	Same entity and TIN on every platform	As above, plus multistate sales and income tax	Collect sales tax on off-platform sales; review inventory states

• Why a foreign-owned LLC doesn't simply give a W-9: the W-9 instructions say a disregarded entity with a foreign owner provides the owner's W-8, not a W-9, even if the LLC has its own EIN (yclcpa.com/w8ben). Using the wrong form makes the platform report you as a U.S. person on a 1099-K that won't match your filings.
• Form 5472 every year: a U.S. LLC owned by one foreign person with any transaction with its owner (capital, expenses paid) files pro forma 1120 + 5472 by April 15, by fax or mail and not e-file, at $25,000 per missed form (yclcpa.com/5472).
• Effectively connected income risk: stock in U.S. warehouses, or U.S. employees or agents who negotiate and set prices for you, can put a foreign owner in a U.S. trade or business with U.S. tax on business profits; under a treaty, the permanent establishment test also applies. It turns on the facts.
• Form 8832 and 60 months: after an LLC changes its classification on Form 8832, Treas. Reg. §301.7701-3(c)(1)(iv) generally bars another change for 60 months; an initial election effective at formation doesn't count (yclcpa.com/ccorp). A corporation pays 21% federal tax, and dividends to foreign owners are withheld at 30%, generally 10% for Chinese tax residents under the treaty.
• The full analysis: W-9 vs. W-8 for a foreign-owned single-member LLC on marketplaces, and the pros and cons of Form 8832 with numbers, are at yclcpa.com/walmart; related-party pricing between a Chinese factory and its U.S. subsidiary is at yclcpa.com/subsidiary.
• State costs: LLCs and corporations doing business in or registered in California pay at least $800 a year; Texas has a franchise tax where entities below the no-tax-due threshold generally pay nothing but still file information reports. State comparison: yclcpa.com/llc.

U.S. sellers can sell abroad through eBay International Shipping: ship to a domestic hub and eBay handles the international leg, customs and returns; buyers pay international shipping and import charges, there's no international fee, and the international leg comes with seller protections. Sellers shipping from China use SpeedPAK or other compliant services; the $800 de minimis exemption has been suspended since August 29, 2025, so small parcels pay duty too.

• eBay International Shipping conditions: Above Standard or better, items located in the U.S. and listed on ebay.com, orders up to $2,500 including shipping, and no lithium batteries, drones, fragrances, aerosols, stamps or coins, among other exclusions.
• No U.S. sales tax on exports: sales to foreign buyers generally carry no U.S. sales tax, and buyers pay import charges locally. The income is still yours and still reported.
• Duties and cost for Chinese sellers: for direct parcels, who is the importer and who pays duty depends on the SpeedPAK or carrier arrangement at the time; for goods stocked in a U.S. warehouse, the importer of record, customs value and duties need documents and go into inventory cost. Duty layers and refunds: yclcpa.com/fba.
• Product compliance: children's products, electronics and cosmetics have their own certifications and import filings, handled by testing labs and lawyers; YCL records the related costs and claims correctly.

eBay stands out for used, collectible, refurbished, auto-parts and hard-to-find items, a low entry bar for individuals and small sellers, and no required subscription. Sellers ship their own goods and are the seller of record, while eBay collects sales tax and manages payments. Amazon and Walmart lean toward new goods and platform fulfillment, Wayfair runs a supplier model, Etsy is limited to handmade and vintage, and TikTok Shop runs on content and creators.

Description: each row is a platform, with the seller of record, main fees, fulfillment, who can join, sales tax, 1099 and payouts.

Platform	Seller of record	Main fees	Fulfillment	Who can join	Sales tax	1099	Payouts
eBay	Seller	Most categories 13.6% + $0.30 / $0.40; Stores from $4.95	Seller ships; eIS for international; SpeedPAK from China	U.S. individuals and companies; Chinese companies via Greater China	Platform collects	1099-K ($20,000 and 200)	Managed payments to bank; Greater China via Payoneer
Amazon	Seller	Professional plan $39.99/month; 15% referral in most categories	FBA or seller-fulfilled	Sellers worldwide, including China	Platform collects	1099-K	Settlement cycle
Walmart	Seller	No monthly fee; referral mostly 6%–15%	WFS or seller-fulfilled	Mainly U.S. companies; some international sellers	Platform collects	1099-K	Settlement cycle
Wayfair	Wayfair (supplier sells to Wayfair)	Wholesale pricing	Drop ship or CastleGate	Brands and manufacturers as suppliers	Wayfair as retailer	Wholesale receipts, generally not a 1099-K matter	Supplier payment terms
Etsy	Seller	$0.20 listing; 6.5% transaction; 3% + $0.25 processing	Seller ships	Handmade, vintage (20+ years), craft supplies	Platform collects	1099-K	Etsy Payments deposits
TikTok Shop	Seller	About 6% in most categories, plus creator commissions	Platform logistics or approved warehouses	Local stores need a U.S. person or company; cross-border usually by invitation	Platform collects	1099-K	After delivery, on a cycle
Shopify store	You	Monthly plan from Basic; payment processing	Your own	Anyone	You register, collect and file	Shopify Payments and others issue 1099-K	Payment provider payouts

• Amazon sellers adding eBay: the same company can sell on both with books split by channel; eBay's seller-fulfilled model usually avoids the FBA inventory-state issues (yclcpa.com/fba).
• More on other platforms: Walmart yclcpa.com/walmart, Wayfair yclcpa.com/wayfair, Etsy yclcpa.com/etsy, TikTok Shop yclcpa.com/tiktok, Shopify yclcpa.com/shopify.

eBay pays out net amounts, so books should record gross sales and then list final value fees, promotions, labels, refunds and dispute fees separately. Each month, download the transaction and payout reports from Seller Hub's Payments tab, and tie the year to the 1099-K.

• Which reports: the transaction report lists every order, fee and refund; the payout report ties to bank deposits; the tax documents page has the 1099-K.
• Labels: labels bought on eBay come out of proceeds and are shipping expense; shipping paid by buyers is revenue.
• Refunds, returns and disputes: refunds reduce revenue; the $20 dispute fee is an expense; amounts lost in a dispute are a loss. Funds eBay holds at year-end are a receivable, not missing income.
• Personal vs. business in one account: tag sales in the transaction report so personal items, collectibles and business sales go to Schedule 1 / Form 8949 and Schedule C respectively.
• Currencies: Greater China sellers are paid and charged in U.S. dollars; when Payoneer converts, book the actual rate and show exchange differences separately.

Settle who you are and which entity sells first, then the account documents, then payouts, logistics and the annual filings. In order:

Description: rows run in order; each is a step and what it needs.

Step	What to do	Documents / notes
1	Decide what kind of seller you are	Clearing out, collecting, reselling, cross-border; this decides the forms
2	Choose the entity	Individual, single-member LLC, S corporation, C corporation, Chinese company; foreign owners review Form 8832 first
3	Get a tax ID	SSN, ITIN (yclcpa.com/itin) or EIN; keep the IRS EIN letter
4	Foreign person forming a U.S. company	BE-13 within 45 days (yclcpa.com/tiktok)
5	Open the account	Personal or business; Chinese companies via Greater China (one year old)
6	Tax form	W-9 or W-8 with name and TIN matching IRS records, to avoid 24% withholding
7	Bank and payouts	Account name and type match the eBay account; Payoneer for Greater China
8	Shipping	eIS for U.S. sellers going international; eDIS and SpeedPAK for direct shipping from China
9	Sales tax	eBay collects on eBay orders; off-platform and inventory states are yours
10	Books	Cost per item, personal and business kept apart, monthly reports
11	Annual filings	1040 / 1120 / 1120-S / pro forma 1120 + 5472, state returns and annual reports

Example (hypothetical numbers, to show the method): Ms. Li lives in North Carolina. In 2026 she sold three kinds of things from one personal eBay account: household items cleared out before a move, sneakers she resells on the side, and graded cards she had collected for three years. eBay paid her $65,800 over 290 transactions, above $20,000 and 200, so eBay issues her a 1099-K by January 31, 2027.

Self-employment tax: $7,800 × 92.35% × 15.3% ≈ $1,102. Reporting all $65,800 as business income without the cost of the personal items and cards would overstate taxable income substantially; reporting only bank deposits wouldn't match the 1099-K and could bring a CP2000 notice. Separate records, separate reporting and a reconciliation from the 1099-K to the return are the simplest path.

Start with what kind of seller you are, which entity sells, and whether a 1099-K arrived. Common situations:

• Situation A: you cleared out household items and got a 1099-K. Find proof of cost; offset loss sales on Schedule 1 or report them on Form 8949; report any gains as capital gains.
• Situation B: you resell sneakers or thrift finds on the side. Report on Schedule C with inventory and cost of goods sold, and pay self-employment tax; with volume, consider an LLC or S corporation.
• Situation C: you sold cards, coins or watches you'd collected for years. Report on Form 8949 and Schedule D, with collectibles taxed at up to 28% if held over a year; if you trade often, check first whether it's a business.
• Situation D: a Chinese company wants to sell on eBay's U.S. site. A company at least a year old applies through Greater China and ships with SpeedPAK; for U.S. warehouses or Authenticity Guarantee categories, plan the U.S. entity, W-9 / W-8 and 5472 first.
• Situation E: you already sell through a foreign-owned LLC and gave a W-9. Check whether the 5472s were filed and whose name the 1099-K carries; decide between a W-8 and a Form 8832 election, then catch up the filings.
• Situation F: a CP2000 or a state letter arrived. Don't just pay it. Reconcile the 1099-K to eBay's reports and the cost of personal items and collectibles first, then respond by the deadline.