1099-K

[rdd2658]

Looks like the small seller on ebay is now going to have that last nail in the coffin to stop selling on ebay.  It used to be a great place to make some extra money, but I have been finally priced out.  Overhead like, cost of item, fees, and the ultra high USPS postage changes over the last few years (price by area of the country, and the biggest scam of Christmas surcharge that starts OCT 1st of each year now, retired mailman here, NEVER have I delivered xmas mail in Oct or Nov!), makes a profit margin of only 10% not worth it,,,,even more so only to be taxed over 600.00 grass sales.  zero money to be had anymore.  Yes, just increase your price, most would say,,,,well after 22 years on ebay I know what prices people are willing to pay,,,,,an increased price is not part of the fix....

[chapeau-noir]

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@mam98031 wrote:

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@downunder-61 wrote:

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@theteamsetguy wrote:

What the difference?

Item price is $10.00 and seller charges $12.50 for shipping for total cost $22.50 for the buyer or the seller offering the same item for $22.50 with free shipping?

Is the glass half full or half empty?

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glasqueene  appears to be picking up the shipping cost themselves when offering ''free shiping''.

Online selling is, in my opinion, not a viable business model for any item under $50.00 + Shipping

I sold for 15 years here on eBay and never listed an item under $59.95 [9.95 built in Free Ship] anything less as a business is not worth the effort JMHO

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OH NO I'm in trouble.  I've sold all kinds of things over the past 20+ years under $50.  I am a profitable business and have been since my first maybe second year.  I also never has used a flat shipping rate as my fluctuate by the weight of what I'm selling.

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Lawdy - I've lived for all this time on the income I've gotten from all of that 20 dollah stuff I've been selling. 

 

[wildpitchsports]

They sure are trying! There's a line already on the 2022 1040

[downunder-61]

Love the image LOL

I satrted out small to get a rep, but I was lucky that I worked for an importer and had access to cost price items  - then through their suppliers I applied to be a distributor for homewares in Au, and none of my stuff was under $25.00 buy in, so I did not have much choice 

[chapeau-noir]

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@downunder-61 wrote:

Love the image LOL

I satrted out small to get a rep, but I was lucky that I worked for an importer and had access to cost price items  - then through their suppliers I applied to be a distributor for homewares in Au, and none of my stuff was under $25.00 buy in, so I did not have much choice 

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Yes - you have to be very select when your buy-in costs are high.  I'm a humble reseller of pre-owned clothing and tech - when you get into those markets, hustle has to make up for a lot.

[winterpalace25]

@mam98031 

I have been thumbs upping all of your recent posts. You are clarifying everything I wanted to correct. Thank you for being an accurate voice in this discussion.

[winterpalace25]

Probably China junk with China subsidized shipping.

[winterpalace25]

It's like when car dealers say they have cars on sale priced "at invoice." But with auto manufacturers and dealers, there are all sorts of kickbacks for volume and other criteria.  Their invoice cost is not the whole story.

[mam98031]

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@winterpalace25 wrote:

@mam98031 

I have been thumbs upping all of your recent posts. You are clarifying everything I wanted to correct. Thank you for being an accurate voice in this discussion.

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@winterpalace25 

Thank you, that is very kind of you to say.  If you still have any outstanding questions, feel free to ask.  I would be happy to help if I can.

[rapidreplay]

WHAT IS A SMALL BUSINESS? WHAT IS MONEY?  WHAT IS SURVIVAL 

around WWII the Germans were faced with this question. Strange how history repeats itself. It's like 1936  is playing out all over again.

The Germans came up with 555 > 5 EMPOLYEES > $50,000 Cash reserves > $50,000 inventory = A Small business. The rest was not worth the resources or expense needed to enforce  every little lemonaide or bread stand / The Basic Survival economy Trading in small wears and silver bits.  

WHAT IS BUSINESS ?

 Your entire life is a Business > Do more RIGHTS THINGS THEN WRONG THINGS ! BECAUSE  You will do both. 

[wildpitchsports]

I've been in  the hobby since the late 1980's. I understand that contractual purchase need for a store in regards to orders, etc what you need to buy to maintain. That's for hobby product primarily though and you're correct that is/was commonplace. Riddle me how someone has a "retail only" product that they are selling for $5 below MSRP on a box that retailed at $19.97 and sells them for $14.95 with free shipping on a product that just went to retail stores a month ago and they have hundreds of? That's before fees. Surely people can't be that poor in running a business. The only way you are making money there is if your cost is , well nothing or pretty darn close to nothing.

[wildpitchsports]

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@rapidreplay wrote:

 Your entire life is a Business 

And you sure will be taxed like it is!

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[forward-motion]

Talk to your accountant or tax preparer before just quitting.  A 1099-k does not mean you owe taxes. It means you have to report the income. Small sellers should easily wipe away any taxes owed with a couple write offs. It only becomes an issue when you have a lot higher number, and those people are already paying taxes on the income generated. 

[rapidreplay]

The retailer closes their business . New and old Inventory is auctioned off in no reserve box lots  as little as 5 bucks a box load of new product  then ends up in on line auctions. eBay once told me their problem was when someone buys a train load or storage locker of the same product at a auction. 

 Then the eBay effect takes place.  A new retail price is then set by the public. that then hurts the entire sector of business involving that product. And of course everybody wants the deal when shopping. $29.95 OUCH i saw that on line for only 19 bucks with free shipping. .  

. 

[rapidreplay]

Then you have the tea party problem. When a country goes after and shuts down the survival economy by  over taxing. you get People living on the streets high crime rates like smash and grab. Then they get together  in groups and become a army of angry mobs. 

[rapidreplay]

Here's a great example of a small business according to or own government.

McDonalds  Wendys  And Burger King are a small Business Not to be confused with McDonalds  Wendys  And Burger King Corporate as they are big business. But the small independent store owners are a small business that own 1 or 2 stores or franchise. 

 that is far from the mom and pop who sell small wears on ebay most selling for food medicine  gas and also help support the small business owners like McDonalds 

 The real problem is by design. you can also look at this by Government standards of minimum wage. when factored in  all your true time to fully eBay a item are you really making money? here's a good one. are you making 15 dollars a hour?