eBay

traditonalproducts · ‎02-10-2023

Over the last 6 months I have really dived into these discussion boards reviewing EBAY fees, increases and whatever. I want to present a hypothetical situation which some of the result applies to all of us. One note, I had this discussion with a friend and from past experience. Let's say a person purchases an abandoned storage unit every month. Your costs were to purchase is $400/month. Thats $4800/yr. So, let's say you donate roughly half of the storage unit to goodwill, the other half you sell on a platform and lastly you have rented a storage unit for $125/month to house your items that you purchased. Tax implications, you have a LLC it's a business. Tax write-offs include the storage unit u rented, any use of your car to and from a facility to ship your products, pick up supplies, maybe you rented a U-Haul or used your car to pick up your items, and the list goes on. So, my final statement is, does a .35% increase in seller fees on a platform really play into the overall numbers? No, in this case it does not. In other case's maybe so but I doubt it. What we sometimes forget is all the extras that can be applied to our taxes that we are not accounting into the equation. I am sure some people will contradict me but so be it. I know the numbers based on this situation.

luckythewinner · ‎02-11-2023

@traditonalproducts wrote:
Over the last 6 months I have really dived into these discussion boards reviewing EBAY fees, increases and whatever. I want to present a hypothetical situation which some of the result applies to all of us. One note, I had this discussion with a friend and from past experience. Let's say a person purchases an abandoned storage unit every month. Your costs were to purchase is $400/month. Thats $4800/yr. So, let's say you donate roughly half of the storage unit to goodwill, the other half you sell on a platform and lastly you have rented a storage unit for $125/month to house your items that you purchased. Tax implications, you have a LLC it's a business. Tax write-offs include the storage unit u rented, any use of your car to and from a facility to ship your products, pick up supplies, maybe you rented a U-Haul or used your car to pick up your items, and the list goes on. So, my final statement is, does a .35% increase in seller fees on a platform really play into the overall numbers? No, in this case it does not. In other case's maybe so but I doubt it. What we sometimes forget is all the extras that can be applied to our taxes that we are not accounting into the equation. I am sure some people will contradict me but so be it. I know the numbers based on this situation.

Nothing in your post gives any information that helps determine whether the .35% increase plays into the overall numbers.

Let's say that the items you sell each month sell for a total of $4800 plus $2400 in shipping charges, and your net profit after all costs and expenses and fees was $1000.

Figuring an average sales tax of 5%, the .35 % fee on $7560 is $26.50 which represents 2.65% of your profit. IMHO that would be a clear impact

traditonalproducts · ‎02-11-2023

My point is that a lot of people are not utilizing their deductions. As in some of the responses my guess is correct. Yes, an increase is an increase no doubt but some of the deductions can offset the increase specifically if one is not using the tax deductions properly. Yes, at some point a minimal increase on a selling price should happen over time.

traditonalproducts · ‎02-11-2023

and what impact is the $26.50 utilized on a deduction? You get some of that back. Also keep in mind EBAY does most of the accounting for you which eliminates what? Your time and a CPA's time which cost money.

toomuchstuffagain35 · ‎02-11-2023

Not to mention the tax implications of deducting that % over the years should you sell your home.

"If a product doesn't sell, raise the price" - Reese Palley
"If it sold FAST, it was priced too low" - also Reese Palley

traditonalproducts · ‎02-11-2023

"Nothing in your post gives any information that helps determine whether the .35% increase plays into the overall numbers."

Because it does not in my example. take the $4800 + $1500 for the year. Let's say the NET result is $30,000 selling on platforms + add in additional monies for items that were sold for $3000 cash. So, the .35% has zero bearing on this example. It's nothing compared to the write offs and profit. These items are NOT buy/resell thus the goal is to make as much money as possible to recoup and add profit to the investment. Lastly, as stated, the ,35% could have a small impact on buy/resell.

My example DOES NOT represent every situation.

argy_eyes · ‎02-11-2023

The 0.35% change may not be a big deal for most sellers, but for eBay it adds up. Assuming that eBay's GMV (Gross Merchandize Value) is about $80B dollars/year it amounts to $280,000,000. Given the decline in GMV and active users that eBay has experienced post-Covid, they will need every penny of it.

Mike

mam98031 · ‎02-11-2023

@coltsde29 wrote:
I see what your saying. That's goes well if that is your first year doing all that. If you have already been doing that same way the last few years there's no way possible that you wouldn't see the increase. Every increased fee no matter how big or small it my be comes out of your pocket and will be noticed on the bottom line. I don't understand when people say you won't notice. The only way is if you sell 1 or 2 things in a year. If you sell 200 items a month with a .35 increase that is $70 a month times that by a year and it's $840 a year. Would you notice if you were missing $840 ? I sure would

On $840 worth of sales X 0.35% = is about $3.00