Online marketplace eBay was established by Pierre Omidyar in 1995. Since then, it has expanded to become one of the biggest e-commerce platforms in the world, generating billions of dollars in annual revenue and having millions of customers. But the issue of whether eBay is a sole proprietorship still exists.
eBay is not a sole proprietorship, to put it briefly. One person owns and runs the business as a lone proprietor in this form of business structure. This indicates that the person is solely liable for the company’s gains, losses, and obligations. The stockholders of eBay, on the other hand, own the publicly traded business.
So, what kind of business is eBay in relation to this? Since eBay is a corporation, it is a different legal entity from its owners. As a corporation, eBay is endowed with various legal privileges and obligations, including the capacity to contract, bring or receive legal action, and pay taxes. Additionally, it has a board of directors, whose job it is to oversee business operations and make strategic choices.
Is selling on eBay regarded as a small business, then? The magnitude of the seller’s business will determine the answer. Small businesses frequently use eBay to expand their customer base and boost sales because it allows sellers of all sizes to list their products there. However, some vendors could run sizable businesses that bring in a sizable amount of money and are not regarded as tiny businesses.
What’s the distinction between an eBay personal account and a business account? For individuals who want to buy or sell products on eBay, a personal account is required. people can offer reviews, purchase and sell goods, and interact with other people through it. a company On the other hand, an eBay account is made specifically for companies that want to sell on the website. It also has extra features like bulk item listing, storefront creation, and inventory management.
So, who is referred to as a sole proprietor? An individual who owns and manages a business is known as a sole proprietor. All facets of the company, including its assets, liabilities, and earnings, are their personal responsibility. Even though sole owners are exempt from the requirement to register their company with the government, they are nonetheless liable for paying taxes on the revenue from their firm.
In conclusion, eBay is not a sole proprietorship even if it offers a platform for people and companies to sell goods. A board of directors oversees eBay, a corporation that is owned by its shareholders. However, people and organizations of all sizes can use eBay to sell goods, and depending on their requirements, they can choose to utilize a personal or commercial account. On the other hand, sole proprietors are those who own and run their own enterprises.