Can no longer afford to sell on Ebay

[0426sheila]

I just finished my taxes and did the the way the IRS will require us all to do them next year. Was not much of a pain (although I have not seen next year's form, but what I did see was I can no longer afford to sell on Ebay. Between rising--ever rising--shipping costs and the bite Ebay is taking I worked my fingers to the bone all year only to see that Ebay, its fees, supplies, receiving my products-- and those increasing costs-- have left me about 48 percent of total sales. I started this 15 years ago as a way to increase our income. Frankly, now at 71 years old, the work involved to remain a top seller--a power seller (whatever that meant anyway) it is no longer worth it. It would be more profitable to be a greeter at Wally world--but I can't stand in a cold door way smiling for five hours a day. I will come up with a different gig--but not with a "partner" who is a bot and takes so much from me. It is a shame. I hope Congress and the IRS are satisfied with all their rules. Finally, I will not invest in Ebay stock as I see a dimmer future for the entire company after many of us leave. Sheila at Kate N Kozy Vintage

[12345jamesstamps]

It has not be finalized yet at a cap of $600. for this year. Congress is trying for the $5000. this year. Imagine all the sellers who stopped selling at $600. last year. Glad I didn't. I did have a pile of receipts for deductions though. Just hold on to all receipts of 2023. Never know what might not happen. There is a lot of lobbying going on now and its not only eBay, PayPal, Airbnb and on and on trying to keep it at $20000. or at least $5000.

[asset_liquidators]

It doesn't matter what the threshold is for a 1099. All income is supposed to be reported on your taxes regardless if it meets the threshold for receiving a 1099 or not.

Lots of sellers stopped selling because they were never paying their taxes. For those of us that have been paying our taxes it is business as usual. The threshold for receiving a 1099 has no bearing on tax reporting requirements. 

[sapphire_studio]

I think profiting 48% of the total sales price is actually really good. 

[joshlilyblue]

very true

[m60driver]

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@0426sheila wrote:

I just finished my taxes and did the the way the IRS will require us all to do them next year. Was not much of a pain (although I have not seen next year's form, but what I did see was I can no longer afford to sell on Ebay. Between rising--ever rising--shipping costs and the bite Ebay is taking I worked my fingers to the bone all year only to see that Ebay, its fees, supplies, receiving my products-- and those increasing costs-- have left me about 48 percent of total sales.

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A 48% net margin is nothing to sneeze at in the retail world.  I reckon my net margin, after all expenses, is closer to 30%.

[714ricki]

Have you tried to adjust your shipping costs to account for the shipping & packing material? Hopefully, you're not offering free shipping.

Good luck!

[southern*sweet*tea]

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@m60driver wrote:

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@0426sheila wrote:

I just finished my taxes and did the the way the IRS will require us all to do them next year. Was not much of a pain (although I have not seen next year's form, but what I did see was I can no longer afford to sell on Ebay. Between rising--ever rising--shipping costs and the bite Ebay is taking I worked my fingers to the bone all year only to see that Ebay, its fees, supplies, receiving my products-- and those increasing costs-- have left me about 48 percent of total sales.

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A 48% net margin is nothing to sneeze at in the retail world.  I reckon my net margin, after all expenses, is closer to 30%.

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The average grocery store profit margin is between one and three percent.  30% for online selling?  That's fantastic and 48% is uber fantastic.

[buyselljack2016]

nothing has changed. Next year, this year, same as last year, and the year before, and the year before

[chapeau-noir]

A greeter five hours a day sounds like a nice, easy job, easier than this one.  My profit is about 45% and I think I'm doing great.

[dbfolks166mt]

It has not be finalized yet at a cap of $600. for this year. Congress is trying for the $5000. this year. Imagine all the sellers who stopped selling at $600. last year. Glad I didn't. I did have a pile of receipts for deductions though. Just hold on to all receipts of 2023. Never know what might not happen. There is a lot of lobbying going on now and its not only eBay, PayPal, Airbnb and on and on trying to keep it at $20000. or at least $5000.

     While the federal limit is up in the air so probably are the individual states. Given the state revenue potential and the fact that the federal government is so slow about taking action I fully expect to see multiple states establish their own 1099 issuance threshold requirements for 2023. 

     Regardless of what the Federal government does I seriously doubt that the states that already have laws on the books are going to change them. 

[dbfolks166mt]

     If that 48% is your bottom line net then as others have mentioned that is not too bad. If however you still have to subtract COGS, packing supplies, POV, printer ink, etc. then your ROI may be lower than the 48% and that would be pre-tax income. Still if you have a ROI of 30% that's not bad depending on what that works out to as far as your level of effort. What are you making for an hours worth of work is the big question. 

[stainlessenginecovers]

If you are netting 48% of the total sale of items, you are doing better than EVERY STORE IN THE COUNTRY!! 

Amazing that you think this is a problem.

Taxes are anywhere from 25% to 50% of profits (15.3% Self Employment; 10-25% Fed Tax, 2-10% State Tax)

So typical is 10-30%. 

So, You're doing better than most. 

[m60driver]

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@southern*sweet*tea wrote:

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@m60driver wrote:

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t margin is nothing to sneeze at in the retail world.  I reckon my net margin, after all expenses, is closer to 30%.

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The average grocery store profit margin is between one and three percent.  30% for online selling?  That's fantastic and 48% is uber fantastic.

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Yes, both grocery stores and gas stations (not the convenience stores inside) work on very high volume turnover and very low margins replacing most of their inventory in just a few days.  Walmart has both high margins and high turnover thanks to an amazingly efficient inventory control system that allow the descendants of Sam Walton to remain the poster children for the need for estate taxes.

I survive on Ebay by buying on the last day of estate sale at 50% off and rarely purchase items above $5.  And again, I am not trying to make a living, just some lunch money plus a little extra while at the same time I have oodles of free time on my hands being medically retired.

[0426sheila]

Thanks. Always a guessing game with a Congress who has sat on their hands for the last decade. When they are not sitting on their hands they are tweeting and roaring to increase the partisan divide. Shipping is very expensive and Ebay takes too big a bite.