How To Sell Online On eBay in Australia: Do You Need a Business Agreement or ABN?

Selling on eBay is a great way to turn a side hustle into a real online business. Whether you’re clearing personal items, flipping vintage finds, or building a branded store, eBay helps you reach buyers across Australia (and beyond) without the overheads of a physical shop.

Getting started can feel simple: create an account, list an item, ship it when it sells. But if you want to sell on eBay in Australia with confidence, it pays to set up your business properly, understand your legal obligations, and protect your brand as you grow.

In this guide, we’ll answer the big questions we hear from sellers every week: Do you need an ABN to sell on eBay? Should you register a company or enter into a business agreement? And what laws apply to eBay sellers in Australia? We’ll also outline the key documents and practical steps to build a sustainable online store on the right legal footing.

Is Selling On eBay a Hobby or a Business in Australia?

Not every eBay seller is running a business. Understanding where you sit helps you decide what to register and which laws apply to you.

• Hobby/casual seller: You occasionally sell personal items you no longer need. You’re not buying stock to resell or operating in a business-like way.
• Business seller: You sell regularly for profit, source or manufacture products, advertise, use branding, manage inventory, and treat your eBay activity like a commercial venture.

There isn’t one “magic” test. The Australian Taxation Office (ATO) looks at your intention, repetition, scale, and whether you’re acting in a business-like manner. If you’re unsure, it’s worth reviewing what defines a business activity in Australia so you can make the right call early.

Step-By-Step: How To Start Selling On eBay (The Right Way)

1) Validate Your Product And Plan Your Store

Before you list, spend some time on the basics. Who are your buyers? What price points are realistic after fees and shipping? How will you stand out (e.g. better photos, faster shipping, niche selection)? A simple one-page plan helps you make decisions, including the best legal structure for your goals.

2) Decide Whether You Need An ABN

If you’re selling as a hobby, an ABN usually isn’t required. If you’re running a business (regular sales, profit motive, business-like operations), you generally should have an ABN. Beyond compliance, having an ABN makes it easier to set up a business bank account, issue invoices, and claim business deductions. You can weigh up the pros and cons in this overview of the advantages and disadvantages of having an ABN.

3) Choose Your Structure (Sole Trader, Partnership, Or Company)

• Sole trader: Quick to start under your own name (with an ABN). Lower cost, but you’re personally responsible for debts and disputes.
• Partnership: If you’re selling with someone else, a partnership shares profits and responsibilities. You’ll usually want a Partnership Agreement and a partnership ABN.
• Company: A separate legal entity registered with ASIC. Often preferred as you scale because it provides liability separation (to a degree), can look more professional to suppliers, and may suit investment.

Many sellers begin as sole traders and later move to a company. If you’re deciding how to present your brand, it helps to understand the difference between a business name vs company name before you register anything.

4) Register A Business Name (If You Trade Under A Name)

If you sell as “Jane’s Treasures” instead of “Jane Lee,” you’ll need to register that business name with ASIC. A registered business name isn’t a company by itself, but it allows you to trade under your chosen brand.

5) Set Up Your eBay Account And Payments

Create a personal or business seller account and connect your bank details so you can receive payouts. eBay does not strictly require an ABN to open a seller account, but if you are carrying on a business you should use your ABN details for accurate records and tax reporting.

6) Prepare Your Listings And Operations

High-quality photos, clear descriptions, and realistic shipping times build trust and reduce refunds. Map your packing process, delivery options, and returns flow before you scale. If you use suppliers or dropshippers, consider contracts so everyone understands timelines and responsibilities.

7) Put Legal Protections In Place

As soon as you’re acting as a business, it’s smart to put key documents and policies in place (more on those below). This includes terms for customers, supplier agreements, and protecting your brand if you’re building one.

Do You Need An ABN To Sell On eBay?

Short answer: it depends on whether you’re operating as a business. Occasional sales of personal items (a hobby) generally don’t require an Australian Business Number (ABN). If you are selling regularly for profit and behaving like a business, you typically should have an ABN.

Having an ABN does not automatically change your tax obligations, but it signals you’re carrying on an enterprise and helps with business banking, invoicing, and interacting with suppliers. If your turnover is $75,000 or more per year, you must register for GST and include GST in your pricing where applicable.

Tax note: The information here is general. Income tax, GST and deductions depend on your circumstances. It’s a good idea to speak with your accountant about how your eBay activity is taxed and when to register for GST.

Do You Need A Business Agreement Or Company To Sell On eBay?

You don’t need a formal “Business Agreement” just to sell on eBay by yourself. However, if you’re selling with a friend, family member or investor, put your arrangements in writing to prevent disputes and clarify decision-making.

• Partnership: If you’re launching together without a company, a Partnership Agreement sets out roles, profit split, capital contributions, and what happens if someone exits.
• Company: If you incorporate, a Shareholders Agreement governs ownership, voting, issuing new shares, and resolving disputes. Your Company Constitution also sets core operating rules.

You can definitely start as a sole trader and move to a company later. The key is to put the right agreement in place when more than one person is involved or when money, IP and risk start to grow.

What Laws Apply To eBay Sellers In Australia?

Australian Consumer Law (ACL)

If you’re selling as a business, you must comply with the ACL. That means your listings and customer communications must not be misleading, you must honour consumer guarantees for goods, and you need a fair refunds and returns process. The rules around misleading statements are strict, so keep claims accurate and complete under section 18 of the ACL. Many disputes are avoided by setting clear expectations up front.

Tax And GST

Profits from your eBay sales are assessable income. If your GST turnover reaches $75,000 in a 12‑month period, GST registration is mandatory and you’ll need to account for GST on taxable sales. Because tax is fact specific, get accounting advice early to set up accurate record-keeping from day one.

Privacy And The Small Business Exemption

Australia’s Privacy Act 1988 (Cth) generally exempts small businesses with annual turnover under $3 million. That means many small eBay sellers won’t be legally required to comply with the Australian Privacy Principles (APPs). However, the exemption has important exceptions - for example, health service providers, businesses that trade in personal information, and credit reporting bodies are covered regardless of turnover. You may also choose to contractually commit to privacy standards (e.g. with marketplace partners or logistics providers). If you publish a Privacy Policy, make sure you can actually do what it says.

Intellectual Property (IP)

Use only images, copy and brand assets you own or have permission to use. If you’re developing a distinctive brand, consider registering your mark to help stop copycats. It’s often worth securing your brand early via register your trade mark before your store gains traction.

Product Safety And Prohibited Items

Some products have mandatory safety standards (e.g. children’s products, electronics). Others can’t be sold at all or require special licences (e.g. alcohol, therapeutic goods). Check both eBay’s prohibited items policy and Australian product safety laws for your category.

Employment Law (If You Hire)

If you bring staff on board - even casually - you’ll need compliant employment paperwork and to follow Fair Work rules on pay, leave and entitlements. Put the basics in place with a clear Employment Contract and keep accurate time and wage records.

What Legal Documents Should Your eBay Store Have?

You don’t need everything on day one, but a few well-drafted documents will save time and reduce risk as you grow.

• Customer Terms & Conditions: Outline key sales terms, returns, warranties, shipping timeframes and liability limits. If you also sell via your own site, consider tailored e-commerce terms and conditions to complement marketplace rules.
• Privacy Policy: If you collect personal information beyond the platform (e.g. through your website or mailing list), a concise, accurate Privacy Policy sets expectations and can satisfy partner requirements. Even if exempt, being transparent builds trust.
• Supplier Or Dropshipping Agreement: Clarify order timelines, quality control, delivery risk, chargebacks and who handles returns to customers.
• Partnership Or Shareholders Agreement: If you’re building the store with others, formalise ownership, roles, decision-making and exits with a Partnership Agreement or Shareholders Agreement.
• Contractor Or Employment Agreements: When you hire help (pick/pack, marketing), use written terms to set responsibilities, IP ownership, confidentiality and termination.
• IP Assignment Or Licence: If freelancers create photos, logos or copy, make sure the IP is transferred to your business so you can use it freely.

These documents work alongside eBay’s own policies. The goal is to fill the gaps, reduce ambiguity, and protect your business if something goes wrong.

Key Takeaways

• Selling on eBay in Australia can be a hobby or a business - your obligations change once you’re selling regularly for profit and acting in a business-like way.
• If you’re running a business, an ABN is generally expected; register for GST once your turnover reaches $75,000 in a 12‑month period (speak with your accountant about tax and record‑keeping).
• Choose a structure that fits your risk and growth plans - sole trader is simplest, while a company offers separation and is better for scaling and investment.
• As a business seller, you must comply with the Australian Consumer Law; keep listings accurate, honour consumer guarantees, and set a fair returns process.
• Many small eBay sellers are exempt from the Privacy Act under the $3m small business exemption, but exceptions apply and transparency still matters.
• Protect your brand and operations with clear customer terms, supplier agreements, employment contracts and, if you have co-founders, a formal partnership or shareholders agreement.
• Consider trade mark registration as your store grows to protect your name and logo against copycats.

If you would like a consultation on starting or scaling your eBay selling business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.