Could be trading as a sole trader/partnership, or under a different company name.

If they're advertising themselves as XYZ Ltd and they don't appear to be trading then that is a little strange!

Clearly there is some of this going on. In just the same way that all restaurants do not always charge all the tax due on cash takings. It is the way of the world.

I think Ebay has created a new very low` overhead operation in many small businesses within the UK. The mark up on many goods is simply not affordable unless there is an element of creative accounting available.

The same is true of many small businesses everywhere. However I do believe the IR and VAT are onto this and will chase these leads. Gather ye rosebuds whilst ye may. The taxman cometh. To Ebay and Paypal. Make sure your business is safe from complaint.

If that's bad on ebay where nearly everything is electronic what's it like in business where cash is king

If you are certain there would be no profit with their margins then surely the only dodge could be VAT? There would be no income tax to pay if there were no profit.

I would have thought a VAT fraud would be difficult to sustain but Steffan may be more help with that.

Personally I'd spend more time exploring their business model

Are you thinking some kind of money laundering....

I've bought Duracell batteries from them. I think it was 24 for about £6.50 and they came 1st class recorded packet.

Just couldn't work out how the hell they had managed that and still make a profit but they've been trading on eBay for ages?

There are always dodgy businesses going on, EBAy or not, best to stay clear and worry about your own biz, if indeed they are crooks and running VAT scams ( totaling lots of cash ) you might find yourself getting mixed up with serious crooks, best left alone i'd say...

They'll get caught in time.

They have a valid VAT number...something fishy is going on.

ideally you could do with seeing what name is on the purchase invoice when you buy something odds are a different company

Currently largest ebay seller in the uk. You are correct about the owners, a couple young chaps.

I use a piece of software to help organise my sales, babz media use the same piece of software - i know the boss of this software firm who has been to see babz in the past. Slick yet basic operation - sell massive volumes and pretty much ignore customer contact - just look at their feedback. They rely on selling in such quantities so don't waste time answering emails - they just let ebay and paypal cases run their course.

I have bought a few pieces from them, generally items for <£2, with postage costs as they are I don't know how they turn a decent profit. Another order we received (£10 item) was advertised with free shipping but arrived by RM special delivery, so again very tight margins.

I personally wouldn't want to operate a business like theirs, but if everything is legit then good on them. Looking at their volumes if they make just 10p per sale they can still pocket themselves a very good wedge of cash each year.

My gripe with ebay is the mumtreneurs, it's great to see new enterprise. But this kind are happy to sell items and take your money, but completely out of their depth when things go tits up. This is a serious problem in one of the categories I sell in - these small sellers are happy to see minimal profit as they have zero costs (operating from their front room) - so leaves people like us with a warehouse full of stock scrabbling about for 50p per sale. I'm hoping the tax man will catch up with a lot of these soon!