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eBay Issues

Started by Desert Phone Guy, July 10, 2020, 05:40:55 PM

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Key2871

My purchasing on eBay is minimal, I live in New Hampshire so no tax. And I get something about twice or three times a year. I get what I can't find local, at least for a decent price.
So I do pretty well over all. I'd like to sell but with all the fees and e bay wanting bank info I'm not comfortable with that. So I stick to buying only what I really need and for the best price I can. Using Bin is my routine as I don't want to get stuck with bidders with deep pockets.
KEN

Desert Phone Guy

Well, after thinking it over, and cooling off, I decided to stay with ebay.  I am familiar with it, and there is no place you can get  as wide an audience viewing your items as ebay.

They do provide a good discount on shipping, so you can purchase your shipping labels at a discount, and not stand in line at the post office and risk exposure to Covid.

Nothing is perfect, but in the scheme of things in today's world, Ebay does ok.

TelePlay

Don't know if others have noticed this but eBay collects its fees on the listed BIN price, not the multiple item discount price the buyer ends up paying. For example, a $10 item with a 15% discount for buying more than one has the buyer paying $8.50 each but the seller pays fees on $10 each.

Not a lot of money, just doesn't seem right to make the seller pay fees on a price higher than the actual selling price.

Jim Stettler

Quote from: TelePlay on August 31, 2021, 07:08:53 PM
Don't know if others have noticed this but eBay collects its fees on the listed BIN price, not the multiple item discount price the buyer ends up paying. For example, a $10 item with a 15% discount for buying more than one has the buyer paying $8.50 each but the seller pays fees on $10 each.

Not a lot of money, just doesn't seem right to make the seller pay fees on a price higher than the actual selling price.

They also collect tax on shipping. I doubt if they pass it along to the tax authorities.
Jim
You live, You learn,
You die, you forget it all.

TelePlay

Quote from: Jim Stettler on August 31, 2021, 07:29:06 PM
They also collect tax on shipping. I doubt if they pass it along to the tax authorities.
Jim

Yes they do and that's fine with me. Keeps me from figuring out the sales tax for the state and county in which the buyer lives and paying it to the buyer's state at the end of the year (adding that tax to the amount the buyer owes is impossible anyway and a bookkeeping nightmare for me to figure out the tax and pay it out of my net profit). Not my concern if eBay does or doesn't pay the tax, I have a record of the tax collected by eBay should some tax collection agency come after me each January to pay them tax I was supposed to collect for that state on each sale.

On the buying side, since eBay adds tax on my purchases, I no longer have to add up my purchases for the year, multiplying it by my state's sales tax rate and add that amount to the "on line purchases" line on my state tax return.

As a buyer and seller, I sleep better at night knowing I won't be getting a letter from the tax collector saying their computer analysis of my online sales and purchases tax needs to be paid, or worse, submit to an audit.

MMikeJBenN27

#20
We are going to have to give them our Social Security #???  No way.  I will quit selling on E-Bay if that is true.


Jim Stettler

Quote from: MMikeJBenN27 on August 31, 2021, 09:50:52 PM
We are going to have to give them our Social Security #???  No f-----g way.  I will quit selling on E-Bay if that is true.
We are talking the current rules for eBay. I think they already have the info needed.
Another member  quit selling on eBay because of Paypal keeping track of the sales.
You live, You learn,
You die, you forget it all.

poplar1

#22
Quote from: TelePlay on August 31, 2021, 07:08:53 PM
Don't know if others have noticed this but eBay collects its fees on the listed BIN price, not the multiple item discount price the buyer ends up paying. For example, a $10 item with a 15% discount for buying more than one has the buyer paying $8.50 each but the seller pays fees on $10 each.

Not a lot of money, just doesn't seem right to make the seller pay fees on a price higher than the actual selling price.

I had not noticed that. However, on shipping, sometimes it costs less than I originally calculated in the listings, and I pass that savings on to the buyer by issuing a refund. In the past, Ebay customer service has told me that I can request a rebate of the final fees (then at 10%) paid to Ebay on the amount refunded to buyer. Usually too much trouble! (Paypal automatically refunded the 2.9% they had charged when you partially refunded a buyer.)

All said and done, it looks like Ebay's 12.55% commission (+ $0.30 per transaction) works out to about 20-25% if I charge buyer the actual shipping amount (always shown on my shipping labels -- most sellers don't show it) and I have to pay 12.55% of the sales tax (which I never even collect).

Apparently, charging sales tax on shipping is legal. In Georgia, services are not taxed: for example, hair cuts, the labor portion of a car repair bill. So I was surprised that shipping would be taxable.
"C'est pas une restauration, c'est une rénovation."--François Martin.

Doug Rose

Be very careful selling on eBay. Paypal also sends a 1099 to the IRS....Doug


Re: Managed Payments on Ebay
« Reply #4 on: June 03, 2020, 09:56:05 PM »
Quote
I sold on eBay for almost 20 years, been gone 2.5 years when PayPal started sending a 1099 to the IRS.

My tax guy said, "you are not making any money!"

State taxes, Government taxes, eBay fees and PayPal fees, not to mention buying the item to sell.

Anytime your SS# is needed, that should be an alarm!

I buy on eBay and sell on CL, not without its challenges. On CL the money is mine, worth the emails and the no shows.

Just my humble opinion...Doug
Kidphone

Key2871

Well I stopped selling on eBay when they wanted me, demanded me to sell by pay through PayPal and wanted my bank account numbers and all that information. I said nope, just isn't worth the hastle to hope a buyer pays me. I had several that never paid me so I went through the hoops to relist, get credit for the auction etc.
That was way back when PayPal was the new fad.
Never looked back. Because I knew the day was coming that they would want to know everything, SS numbers the whole bit.
And prices for shipping are making it not worth buying on eBay, and getting items sent timely is getting to be an issue too. Takes the fun out of it.
KEN