When you setup your PayPal account and eBay account, did you meet all the requirements ??
If you want to be a seller on eBay, it's best to ensure that you have a "verified" PayPal account. You can sell with a Personal account if it's "verified" however there are limits - a "verified" Business account is your better option. Also, to be a seller on eBay, you must link your eBay account to your PayPal account and then link your PayPal account to your eBay account - else the accounts cannot communicate with each other. There's FAQs on both eBay and PayPal that explain the process and what you need to do to make things work.
