eBay

wyldflower002 · ‎02-10-2021

I've sold on ebay for years...over a decade, I have a 1099 from paypal like always on time, nothing from ebay except a message that I haven't sold enough for me to get a 1099 from them?
So THEY switch the payment system in the middle of the year, they change everything on us and paypal can do it's job but ebay can't? The total amount of my sales is over the cut off amount together, 2020 is a whole year and the IRS doesn't care if ebay decided to change things in the middle of the year, where is my 1099 form? I have to add them together.
Managed payments were supposed to save us money and it seems that it really doesn't now the % of my sales taken out for selling fees has miraculously gone up now paypal is in the rear view. It seems actually that I am paying more to be honest.
All I want is my 1099 so I can file my taxes for the whole year.

releasethekraken_1 · ‎02-11-2021

For sales where sales tax is 5.8% or less, MP has lower fees. For 5.9% or more, MP is higher than PayPal was.

valueaddedresource · ‎02-11-2021

@mr_lincoln wrote:
@releasethekraken_1, @nobody*s_perfect

Ahhh, I see my mistake ... I was using my Store FVF rate in MP of 11.5% instead of the 12.35% base. I created a quick spreadsheet and while MP Fees ARE lower then the previous eBay-PayPal it's not by very much ... at all.

@mr_lincoln @releasethekraken_1 @nobody*s_perfect

I've been tracking monthly since August for my company and we average about 3% savings with MP vs PayPal when you factor in the TRS+ discount. If you did the comparison without TRS+ discount, it averages out to about 0.23% savings.

Our products are seasonal with prime time being Spring-Mid Summer, so the numbers I have so far are for our slower months. It will be interesting to see if the trend still holds as things pick up again in March/April. I don't expect to see a huge variance one way or the other, but if we see more sales to higher tax rate states in our prime season months, it may affect things.

mr_lincoln · ‎02-11-2021

@releasethekraken_1 wrote:
For sales where sales tax is 5.8% or less, MP has lower fees. For 5.9% or more, MP is higher than PayPal was.

Yep, right around half of them ...

Regards,
Mr. Lincoln - Community Mentor

go-bad-chicken · ‎02-11-2021

@mr_lincoln wrote:
@releasethekraken_1, @nobody*s_perfect

Ahhh, I see my mistake ... I was using my Store FVF rate in MP of 11.5% instead of the 12.35% base. I created a quick spreadsheet and while MP Fees ARE lower then the previous eBay-PayPal it's not by very much ... at all.

This is fairly accurate. There is one discrepancy. Your table is assuming that the state is one of the 18 that does not assess sales tax on shipping.

If the state does charge sales tax on shipping then MP will cost $0.02 more in FVF for the non store owner. And I am fairly certain that the store sellers both new and old methods breaks even.

Is sales tax is assessed on shipping then using your example MP will cost the 12.35% seller $14.70 in FVF and the old PayPal method seller (10% + 2.9%) pays $14.68 in fvfs

Just saying.😁

ronsam-197 · ‎02-11-2021

The one scenario where I don't think ebay is following the laws is with multiple ID sellers. Apparently they're issuing 1099s based on whether a seller's -ID- reached the thresholds, when they should be sending a 1099 if all the seller's IDs combined reached the thresholds as it's based on SSN (just as PayPal did).

go-bad-chicken · ‎02-11-2021

Were all of your selling IDs enrolled in managed Payments during 2020?

I only have one of my accounts currently enrolled in MP. It was enrolled on August 15. Between August 15 and December 31 that account did 197 transactions and just under $36K in gross sales (item price + shipping charged). So just 3 transactions shy of a 1099 for me from eBay.

But to be honest, the fact that eBay did not issue that account a 1099 does not really bother me personally but I can see where other sellers such as yourself might take issue.

mr_lincoln · ‎02-11-2021

@go-bad-chicken wrote:
@mr_lincoln wrote:
@releasethekraken_1, @nobody*s_perfect

Ahhh, I see my mistake ... I was using my Store FVF rate in MP of 11.5% instead of the 12.35% base. I created a quick spreadsheet and while MP Fees ARE lower then the previous eBay-PayPal it's not by very much ... at all.

This is fairly accurate. There is one discrepancy. Your table is assuming that the state is one of the 18 that does not assess sales tax on shipping.

If the state does charge sales tax on shipping then MP will cost $0.02 more in FVF for the non store owner. And I am fairly certain that the store sellers both new and old methods breaks even.

Is sales tax is assessed on shipping then using your example MP will cost the 12.35% seller $14.70 in FVF and the old PayPal method seller (10% + 2.9%) pays $14.68 in fvfs

Just saying.😁

@go-bad-chicken So at the end of the day through all of this eBay wins ...

Regards,
Mr. Lincoln - Community Mentor

valueaddedresource · ‎02-11-2021

@mr_lincoln wrote:
@go-bad-chicken wrote:
@mr_lincoln wrote:
@releasethekraken_1, @nobody*s_perfect

Ahhh, I see my mistake ... I was using my Store FVF rate in MP of 11.5% instead of the 12.35% base. I created a quick spreadsheet and while MP Fees ARE lower then the previous eBay-PayPal it's not by very much ... at all.

This is fairly accurate. There is one discrepancy. Your table is assuming that the state is one of the 18 that does not assess sales tax on shipping.

If the state does charge sales tax on shipping then MP will cost $0.02 more in FVF for the non store owner. And I am fairly certain that the store sellers both new and old methods breaks even.

Is sales tax is assessed on shipping then using your example MP will cost the 12.35% seller $14.70 in FVF and the old PayPal method seller (10% + 2.9%) pays $14.68 in fvfs

Just saying.😁
@go-bad-chicken So at the end of the day through all of this eBay wins ...

eBay community volunteer extraordinaire @shipscript made this really helpful fee estimator tool.

https://www.isdntek.com/ebaytools/SimpleEbayFeeEstimator.htm

You do still have to know whether or not the state you're testing with charges tax on shipping, but it gives you the option to select that and a few other factors to get an idea what the fees might be.

It is just an estimator, so it may not be perfect, but it is a lot clearer and easier to understand than anything I've seen directly from eBay on the topic. 😊

wyldflower002 · ‎02-11-2021

So riddle me this, not only does the ebay numbers not match the paypal numbers for what I have on my paypal 1099 BUT I printed out all monthly sales reports last month and went back today to print out a month I had missed and not a single month is the same as the last time I printed them out in the exact same time periods, I have different numbers, total sales, cost of shipping and fees, nothing is the same, not in any month for last year. How can I reconcile anything when ebay can't even do it?

wyldflower002 · ‎02-11-2021

Except can't even get it right, last month I printed my monthly sales reports from ebay per month and they not only don't match anything paypal has for the months recorded there but they don't even match what I printed this month. Every single number is different from the exact same period.
I wonder if it's just mine, can someone else look at theirs, please?

To your point about managed payments and ebay switching either a few or a lot at a time, it all sucks..no matter how they did it, greed is doing ebay in and the death bell has been ringing for a while.

ronsam-197 · ‎02-11-2021

They were all active in MP in 2020 but even combined didn't reach the 1099 threshold that year due to most of my yearly sales being through PayPal.

I'm looking ahead to when they're all in MP for an entire year yet under ebay's current "system" any ID which doesn't meet the threshold won't be issued a 1099 and I'm thinking the IRS will be wondering why my ebay 1099 doesn't match up with my own reported sales figures.

I'd think they would consider ebay not combining ALL payments processed through their system for one SSN account a failure on ebay's part, not mine.

valueaddedresource · ‎02-11-2021

@ronsam-197 This looks to me to be saying they combine the payment amounts from all accounts to determine if you meet the threshold, but then will issue a separate 1099-K for each account.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794#section1

So, based on that page, I would say you should be OK in your situation if your total sales across all accounts exceeds the threshold, they will issue a separate 1099-K for each account and you can then just add up the totals.

payments_team@ebay can you confirm if that is correct?

slippinjimmy · ‎02-11-2021

@ronsam-197 wrote:

I'm looking ahead to when they're all in MP for an entire year yet under ebay's current "system" any ID which doesn't meet the threshold won't be issued a 1099 and I'm thinking the IRS will be wondering why my ebay 1099 doesn't match up with my own reported sales figures.

If you are doing your accounting properly your reported Gross Revenue will probably never equal/match your 1099K.

The only people who need to worry about the amount on the 1099K are those that without the issuing of a 1099K plan to evade taxes and not report any of their eBay income.

silveracrossborders · ‎02-11-2021

That is true however now they include sales tax in the fee.

releasethekraken_1 · ‎02-11-2021

@ronsam-197 wrote:
I'm looking ahead to when they're all in MP for an entire year yet under ebay's current "system" any ID which doesn't meet the threshold won't be issued a 1099 and I'm thinking the IRS will be wondering why my ebay 1099 doesn't match up with my own reported sales figures.

Anyone who sells on more than one site, but doesn't get a 1099 from all of them, won't have matching numbers. I'm sure the IRS sees millions of those, so your numbers not matching won't cause any wonder on their part.