Chinese Sellers on eBay's U.S. Site: Ship From China or Set Up a U.S. Company? Onboarding, SpeedPAK and Tax Setup

A Chinese seller has three main ways onto eBay's U.S. site: a Chinese company shipping directly, a Chinese company with stock in a U.S. warehouse, or a U.S. company. A Chinese company that is at least one year old and isn't an individual business (个体工商户) can onboard through eBay Greater China, be paid through Payoneer, give eBay a W-8BEN-E, and ship at least 90% of U.S. orders with SpeedPAK or another eBay-approved service; with no U.S. inventory or people, there's generally no U.S. income tax return. Once goods sit in a U.S. warehouse or a U.S. company does the selling, the tax setup is different and needs deciding before launch.

What Greater China onboarding requires

eBay Greater China's recruitment page (2026) sets the conditions: any company type except an individual business may apply, and the company must have been registered for at least one year. It must be new to eBay, or have stopped selling on eBay for at least a year, with no other active eBay business account, and it must meet eBay's qualification, compliance and category rules, with a manual review deciding.

You submit accurate company and contact details and a business plan, possibly more documents, and in some cases a site visit; false information gets an application rejected or terminated. After the initial check, eBay assigns an account manager based on location and main category and normally calls or emails within seven business days. Typical documents are 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.

Payouts, fees and currency

Since April 2021, buyer payments for Greater China sellers have been handled by eBay managed payments and paid out through eBay's arrangement with Payoneer. Final value fees are the same as for U.S. sellers: 13.6% in most categories without a Store, 12.7% with a Basic or higher Store, plus $0.30 or $0.40 per order.

Sellers registered in Greater China also pay an international fee: 1.30% of the total sale for buyers in the U.S. and Canada. Above Standard sellers with prior-month sales of $3,000 or more get 0.95%, 0.60% or 0.35%, and 0% at $100,000 or more. The currency conversion charge is 2.75%. Your seller account shows the rates that apply; all of them are business expenses in the books.

SpeedPAK and eDIS: the rule for shipping from China

eBay's direct shipping policy for Greater China sellers (the version effective May 8, 2021) has two parts. First, for items located in mainland China sold to U.S. buyers, with no minimum value, at least 90% must ship with SpeedPAK or another eBay-approved solution at a service level matching the buyer's choice. Second, every Greater China order needs an eBay-integrated shipping service, an acceptance scan and an uploaded tracking number within the handling time.

Sellers must register and validate an eDIS account (eBay's logistics platform) before using SpeedPAK. Compliance is checked every Sunday, and failing it can mean removed listings, buying or selling restrictions, lower limits or suspension. SpeedPAK rates changed several times in 2026; eDIS notices govern. The $800 de minimis exemption has been suspended since August 29, 2025, so direct parcels pay duty too. Who is the importer and who pays duty depends on the shipping arrangement at the time; keep the documents and include the costs.

Chinese company shipping directly: what the U.S. side files

The Chinese company gives eBay a W-8BEN-E certifying it is foreign, so eBay generally issues no 1099-K and applies no backup withholding. A company that ships only from China, with no U.S. inventory, employees, office or agent negotiating and pricing for it, is generally not engaged in a U.S. trade or business and has no U.S. federal income tax return to file.

eBay collects and remits sales tax as a marketplace facilitator in the states that have one, whether or not the seller is in the U.S. Chinese VAT, export rebates and enterprise income tax follow Chinese rules.

Once stock goes into a U.S. warehouse

U.S. inventory shortens delivery and makes seller standards easier to meet, but it raises tax questions. Inventory in a state's warehouse gives the seller physical presence there, with possible income tax, franchise tax or registration. Federally, a foreign company that keeps stock in the U.S., with people acting for it here, may be engaged in a U.S. trade or business, making its profits effectively connected income (ECI). A Chinese tax-resident company can also look to the U.S.–China treaty, under which facilities used only for storage, display or delivery of goods generally aren't a permanent establishment. Which side of the line you're on depends on the warehouse contract, who sets prices, who signs contracts and where title passes, and may call for disclosing a treaty position.

Also, most Authenticity Guarantee categories are limited to U.S. sellers, the eBay Refurbished program requires U.S.-based sellers, and eBay International Shipping requires items located in the U.S. Using those generally takes a U.S. entity and U.S. stock.

Selling through a U.S. company: W-9 or W-8 first

Many sellers form a U.S. LLC and open an ebay.com business account. The catch: an LLC owned by one Chinese individual, without a corporate election, is disregarded for U.S. tax. The W-9 instructions say that when a disregarded entity's owner is foreign, the owner gives a W-8, not a W-9 under the LLC's EIN. Use the wrong form and eBay reports you as a U.S. person on a 1099-K that won't match your filings.

That LLC files pro forma 1120 plus Form 5472 by April 15 every year, by fax or mail, with a starting penalty of $25,000 per missed form. Many sellers therefore use a C corporation, or have the LLC elect corporate status on Form 8832: the LLC then gives its own W-9 and files 1120 plus 5472 at a 21% federal rate. After a classification change, Treas. Reg. §301.7701-3(c)(1)(iv) generally bars another change for 60 months, and dividends to Chinese owners are withheld at 30%, generally reduced to 10% under the treaty.

When the U.S. company buys from the owner's factory in China, prices must be arm's length (IRC §482), the tax cost of inventory imported from a related party generally can't exceed its customs value (IRC §1059A), and these transactions are reported on Form 5472 every year.

Example (hypothetical numbers, to show the method)

Company A in Shenzhen, three years old, sells phone accessories. In 2026 it onboards through Greater China and ships directly, selling $300,000 to U.S. buyers. At 1.30%, the international fee is about $3,900; if prior-month sales later stay between $10,000 and $49,999.99 with Above Standard status, the rate drops to 0.60%, about $180 on a $30,000 month. Company A gives a W-8BEN-E, has no U.S. inventory or staff, and generally files no U.S. income tax return.

For 2027, Company A plans to move half its stock into a U.S. warehouse and sell through a wholly owned Wyoming LLC. Before launch it has to choose: keep the LLC disregarded (Company A gives a W-8BEN-E or W-8ECI, the LLC files pro forma 1120 plus 5472, and Company A's U.S. taxable business profit has to be assessed), or elect corporate status on Form 8832 (the LLC gives a W-9 and files 1120 plus 5472, and Company A's sales to the LLC are priced at arm's length). The tax and filings for each should be modeled on real margins and inventory before deciding.

Next steps

Account types, 2026 fees, seller standards and a platform comparison are in our eBay guide; the full analysis of W-9 vs. W-8 and Form 8832 for foreign-owned LLCs is in the Walmart guide, and Form 5472 in the 5472 guide. To model your own situation, book a free 15-minute call or add WeChat YCLUSA.