Since posting have found whilst sorting my notes that there was a huge fire in 1858 when a large part of Sandside, where the building is, was burned. There was an article in the Scarborough Mercury 1858. So the picture must some time before 1858.
The small part of the building which has Shipping Stores sign became a Sub Post office which moved in April 1903 to No 16 Sandside.
I have posted a picture of the Ellis Building which must have been taken after restoration with Est. 1858 on the side of the building. James Ellis, dark clothing, pictured in the doorway was born 1832 so would have been 26 in 1858 when he expanded his business from the Shipping Stores. This picture was later. Walter Stephenson (pictured) was born in 1894 so picture must have been taken shortly after.
In case this is of interest to anyone pictured are: Rachel Rawling Allen, Jack Allen? Child unknown, James William Watson, Miss Tucker (post office) James Ellis, Jane Ellis holding Walter Stephenson, Ethel Mary Ellis, John Wheelan Ellis and Staff from the PO. (Rachel Rawling Allen married John Wheelan Ellis)