Child safety campaigners yesterday told the woman to "wake up" and dubbed the mum's actions as "twisted" and she opened the door for paedophiles to prey on her own kids.
The Geelong Advertiser was yesterday told the two children were also in on the act.
But while the woman, aged in her 30s, will escape criminal sanctions after police accepted her excuse that it was a joke, the Department of Human Services is probing her actions.
The eBay page was active for one day late last week but was taken down within two hours of police contacting the site.
Centre for Excellence in Child and Family Welfare president Kevin Zibell said the mother needed to be held accountable for her actions.
"I think it's a fairly twisted sense of humour. It's a sick joke and it's distasteful," Mr Zibell said.
"I think the disturbing thing is that it devalues our children and it's not the right message to send to anyone, whether it's a joke or not.
"People like paedophiles do try to get information on kids and one of the concerns of doing something like this is it will attract paedophiles and you don't want to be doing something like that."
Victorian Child Safety Commissioner Bernie Geary blasted the mum.
"It's just sad that people would spend their leisure time on something like that it's just bizarre," he said.
"Children should not be used as the butt of jokes and she needs to find something more productive to do with her time and needs to wake up to herself."
A Victoria Police spokesman said investigators from Geelong were notified last week that a mother was trying to sell her two children on eBay.
"Photos of the kids, a girl and a boy, both aged under 10 years, was included in the sales pitch. Police tracked down the woman who said it was a joke," a spokesman said.
"Police and DHS child protection conducted a joint investigation. DHS remain involved with the family.
"The woman will not be charged, however, police discourage this type of behaviour."
A spokesman for the DHS said an investigation into the mother was under way and authorities remained in contact with her.
"We are conducting an investigation to ensure the children's welfare and safety are taken care of and looked after," the spokesman said.
"If it is deemed severe and the children were at risk then yes, that would be the case (taking the children off the mother)."
The auction site acted promptly and provided police with the woman's details.