Is sales tax affecting your sales?

[hollygolitly]

I am feeling the pinch, sales down from last year and vs just a month ago....anyone else?

It is harder and harder to make it work as a seller on Ebay!!

Holly

[dinpavent0]

I definitely see your side of it. If I look at walmart for example and I see an item I want, i check and see if it is available at the store which is not even ten min drive from me, I will at least avoid one of the charges, no shipping costs but still gotta pay tax. Also , tho all sites that I know of charge sales tax and shipping or if its free shipping, it is usually just wrapped into the price unless its a big box store and you spend so much and get free shipping. I ordered a few things off Mercari and they have sales tax, pretty much all places have sales tax and shipping. I don't mind it, but do pay attention especially if it is an expensive item and I can get it locally. So I get ya totally. IT just depends on what it is I am purchasing, and if it is available locally, the cost of item an cost of shipping. I have always had to take that into consideration, eBay is just now pretty much catching up to what everyone else has been doing for some time. So I am just used to it. It hasn't affected my sales.

I did have one buyer tho actually buy something from me and then message me to refund them the dollar and change they were charged for tax. I said sorry, I didn't receive that money so you need to contact ebay and take that up with them. LOL... didn't hear back and got good feedback so I wonder what happened when she called ebay. Only odd thing I have had happen since the sales tax has been added here.

[mam98031]

I definitely see your side of it. If I look at walmart for example and I see an item I want, i check and see if it is available at the store which is not even ten min drive from me, I will at least avoid one of the charges, no shipping costs but still gotta pay tax.

Except there is the cost of using your vehicle to go the 20 minutes round trip and your time used to make the trip to include your time in the store.  I don't know about you, but I'm horrible about going to a store like Walmart and walk out with just one thing.  So for me, I would end up spending more money that I would have if I had just ordered it from home.  FYI, Walmart has free shipping on a whole lot of things.

[dinpavent0]

LOL.. I have to say you are sooo very right on that!! I NEVER leave walmart with the one thing I needed and they do have free shipping on many items. Also I personally can't stand all the people!! It gives me total anxiety to be around that many ppl especially when in a hurry and even the self check out lines have lines back to the clothes lol...

[mam98031]

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@dinpavent0 wrote:
LOL.. I have to say you are sooo very right on that!! I NEVER leave walmart with the one thing I needed and they do have free shipping on many items. Also I personally can't stand all the people!! It gives me total anxiety to be around that many ppl especially when in a hurry and even the self check out lines have lines back to the clothes lol...

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I feel we could share some good stories.  I live rather rurally and Walmart is the BIG store in town [about 15 minutes away], a little town but we have a Super Walmart.  I only venture in when I need perishables or something else around the house.  Almost all my other shopping is done on line.  Once ever couple of months I will venture into the big city [about 45 minutes away] for a big supply run or just browsing through shops if I have the urge.  

[dinpavent0]

I grew up in the city, then as an adult after I had my kids we moved to a rural area and I loved it. Due to some unfortunate events had to move back to city and I can't stand It!! Ugh .... I honestly hate having neighbors so close. We actually just put in purchase offer on new house, still in city but it is a perfect location, still in city so still very close to my husband's garage but we have 3 lots of land where house is and virtually no neighbors on the block at least..lol
Across the street is an industrial business. Nothing ever going on over there either so I am very much looking forward to our new place if these **bleep** lawyers would set closing date already...LOL Anyways, I am sure we could share some stories.. so agree with you. You are lucky.. we will be in the city for at least another 5 years but at least better location. I also do try to do most of my shopping online especially for Christmas! I can't go to walmart at that time, I will prob go to jail..LOL

[mam98031]

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@dinpavent0 wrote:
I grew up in the city, then as an adult after I had my kids we moved to a rural area and I loved it. Due to some unfortunate events had to move back to city and I can't stand It!! Ugh .... I honestly hate having neighbors so close. We actually just put in purchase offer on new house, still in city but it is a perfect location, still in city so still very close to my husband's garage but we have 3 lots of land where house is and virtually no neighbors on the block at least..lol
Across the street is an industrial business. Nothing ever going on over there either so I am very much looking forward to our new place if these **bleep** lawyers would set closing date already...LOL Anyways, I am sure we could share some stories.. so agree with you. You are lucky.. we will be in the city for at least another 5 years but at least better location. I also do try to do most of my shopping online especially for Christmas! I can't go to walmart at that time, I will prob go to jail..LOL

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You and I could get into some real trouble together, I'm sure of it!    

[chapeau-noir]

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@sodelight wrote:
I will say I've hit the back button many times on items I would have otherwise purchased, had sales tax not shown up at checkout.

When buying online I always felt paying shipping was a fair trade off for not having to pay sales tax and the convenience of delivery. Now having to pay BOTH, it can be a dealbreaker. Why should I want to pay shipping AND tax when I can find many items locally for about the same price and have the advantage of personally inspecting the item plus easy return if needed. When total price is a good savings versus in person, then I'll buy.

The tax can be a deal breaker when purchasing unnecessary items. If I find an item I want to treat myself or collect, I may pass when seeing the extra tax dollars charged, as it's something I can live without! Or I may simply purchase less due to taxes paid pinching the pocketbook. If I have to pay an extra $7 on every $100 spent, there goes the monies that may have otherwise gone toward purchasing a few inexpensive items. Overall it makes me more selective about what I buy.

Just the way I see things.

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I think this view is shared by more than a few, which is why I think sales tax has an impact, but generally on commodities that can be purchased locally - many people trade convenience and no sales tax for shipping cost, particularly in states with high state/municipal sales taxes.  OTOH, items that cannot be found locally, or which take some doing to find locally, or for folks who don't have the time, the means to go shopping, or where it's a wash, I think the convenience of online shopping will outweigh taxes.  But I understand the point of view.

It'll take a while to shake out.

[numisnorway]

All of this thievery is making direct private transactions outside of the prying eyes of the authorities more legitimate. All of this is good for crypto and decentralized marketplaces.

[raybies6]

I totally agree !
CB

[7606dennis]

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@kathieskorner wrote:

My sales started on a downward spiral before the sales tax issue took effect.  I've charged Florida sales tax on in-state sales since moving here and Virginia before that, and I never thought that impacted my home state sales.   In fact I had more Florida sales in October than I had in the previous three quarters of 2019.  

There is no way to measure what effect sales tax has had on eBay sales,  but I think this is just another straw some sellers are grasping at to explain why their sales are declining.

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Of course, Florida hasn't passed a marketplace facilitator law yet so eBay wouldn't collect any sales tax on sales being delivered within Florida.  Of course, you would still be required to do so.  At least, Florida doesn't have a state income tax.

[7606dennis]

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@numisnorway wrote:

All of this thievery is making direct private transactions outside of the prying eyes of the authorities more legitimate. All of this is good for crypto and decentralized marketplaces.

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Of course, most state sales/use tax laws require the buyer to pay the taxes directly to them if not collected at the time of purchase by the seller.  Frankly, it sounds like you're advocating tax evasion.  

[chapeau-noir]

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@pink.fish.rule wrote:
Gee I wonder if they ask the same thing at a B&M (probably not)

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A lot of people have enjoyed the "tax-free" shipping they've had online, so I think that differentiates it from B&M.  I know its really dumped my sales on Poshmark (which uses social media, haggling and bundling, and rather different from here) - I can track it right from when Posh rolled out the marketplace taxes.  Given that Posh has a $6.95 shipping across the board up to 5 lb (a great deal save on the many light items sold there), sales tax on top of that makes a lot of people think twice.  In this case its the price breakdown.

Here on eBay, I think its had an effect on my sales but is  not as easily traceable, and it's definitely not as much due to being able to charge less shipping so the breakdown is easier.  I don't sell commodities but stick to OOAK so sales tax has less of an impact. Not sure about Posh, but I think people will get used to it here just as they've been used to it on Amazon.

[the*dog*ate*my*tablecloth]

Those purchases were never tax free. They were supposed to be reported on the buyers state tax return. Many cheated though, that’s why the new laws.

[chapeau-noir]

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@the*dog*ate*my*tablecloth wrote:

Those purchases were never tax free. They were supposed to be reported on the buyers state tax return. Many cheated though, that’s why the new laws.

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Yes - that's why I put "tax free" in quotes, as that was how it was regarded, not what it really was.

[greengiant]

Well said.