beginner

[dabo6871]

im a beginner trying to start a ebay business, what are some tips for pricing, shipping? should I add tax to my items? 

Is "tax write off" a thing? do i need to take certain step to do so, keep certain particular records? 

Any tips would be greatly appreciated

Thank you in advance

[ebooksdiva]

Sales tax is charged and collected by eBay and remitted to the buyers state. Do like every other seller does do your research. This link has a lot of info > Start selling on eBay 

A to Z policy index 

[albertabrightalberta]

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@dabo6871 wrote:

im a beginner trying to start a ebay business, what are some tips for pricing, shipping? should I add tax to my items? 

Is "tax write off" a thing? do i need to take certain step to do so, keep certain particular records? 

Any tips would be greatly appreciated

Thank you in advance

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1. what are some tips for pricing, shipping? 

Search other current, completed and sold listings and sites to see what the same or similar items sold for. For shipping, calculate the weight, package size and various shipping services to various zip codes to see what it'll cost to ship.

2. should I add tax to my items?

You don't need to add sales tax. Ebay will do that automatically based on the location to which the item is shipped. 

3.  do i need to take certain step to do so, keep certain particular records? 

You should keep records of your expenses - travel, shipping costs, fees, COG, etc. so when you get your 1099K, you'll be able to accurate offset your payments with your expenses.

[orangehound]

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@dabo6871 wrote:

im a beginner trying to start a ebay business, what are some tips for pricing, shipping? should I add tax to my items? 

Is "tax write off" a thing? do i need to take certain step to do so, keep certain particular records? 

Any tips would be greatly appreciated

Thank you in advance

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Pricing / Shipping

• USPS is more forgiving about shipping mistakes than FedEx or UPS.   If you should use either of FedEx or UPS, make sure you learn the shipping rules.
• If you are selling high-demand items, make sure you do not overprice them ... only thieves and scammers overpay because, well, they aren't planning to pay.
• USPS insurance is practically only useful for lost items - if it breaks in shipping, then it will not likely pay.  So, learn to pack in such a way that the box can drop 4-5 feet without damaging the contents.

Taxes

• eBay handles sales taxes.  But, as a business, you will be paying federal and state taxes, and self-employments taxes, on your net profits.  Self-employment tax is 15.3% on 92.35% of net profits (14.1%).
• You need to keep good inventory records, and good records of all expenses (including mileage you might use in support of your business).  eBay provides a nice summary at the end of the year to help you with gross sales, eBay fees, and shipping charges (assuming you use eBay to purchase shipping labels).

Other Tips

• There is no such thing on eBay as "No Returns, All Sales Final".  Buyers can return an item simply by disagreeing with some aspect of the description (this is the Money Back Guarantee), and you will then be on the hook for return shipping.  Buyers lie.
• I think there is less hassle, and less chance of fraud, by offering 30-day returns ... this way, you can set it up so that the buyer is paying for the return shipping if they decide they don't want it.
• There are some seller protections against buyer fraud if you offer 30-day returns and are a top-rated seller.
• Even when you do everything right, there will be a percentage of sales that encounter a bad buyer ... it is just a fact of selling.  To minimize this, price fairly, list accurately and honestly, and take lots of high quality pictures that properly represent colors.
• Some inventory sells fast, and some slow (or not at all).  If you are not rotating out your sluggish or non-salable inventory, it can feel as if your overall sales are decreasing ... this is because a greater proportion of your inventory is a boat anchor.
• In my experience, eBay sets a sales dollar target for your account, and increases/decreases visibility to meet that sales target.  Your target goes up if you list attractive inventory gets interest and sells well, and your target goes down if you list unattractive inventory that never gets clicked on and doesn't sell well.  eBay provides you with two numbers on the Performance > Tracking page that you should work at to improve:  (1) average click-through rate, and (2) averages sales-conversion rate. 
• To go up, you want to work to get that click-through rate over 2.0% ... attractive inventory, attractive first photo, good title.  eBay shows numbers for individual items, so you might want to cull out or fix the listings that don't generate clicks
• Also to go up, you want to work to get that sales-conversion rate above 1.35%  (I read a few years ago that this is the average rate across all eBay accounts).  You want inventory and product descriptions that is generating above-average sales conversions for eBay.  When you do, they increase your target.  And remember, as soon as someone clicks on your item, eBay will be showing competitors merch right beside yours ... so to get the sale, you need to look attractive when compared with competition.

[janet9988]

Get a good accountant.

[monroe67]

"im a beginner trying to start a ebay business, what are some tips for pricing, shipping? should I add tax to my items? 

Is "tax write off" a thing? do i need to take certain step to do so, keep certain particular records? 

Any tips would be greatly appreciated"

Everybody who has already responded has told you about sales tax.  
The Marketplace Facilitator laws say that it is eBay's responsibility to calculate and collect sales taxes based on the zip code of the delivery address.   eBay is also required to send those sales taxes to the proper states.  You don't have to do anything about collecting sales taxes from your eBay buyers.  

"Tax write offs" are definitely a thing.  They are a thing that applies to all kinds of income tax situations. 

For your eBay sales, they mean that when you, the seller, sit down to prepare your yearly IRS income tax return, you may be able to deduct -- i.e., write off -- certain expenses that you paid.  Some of those expenses are the fees that eBay retains from your payouts from each of your sales.  Other expenses include postage you paid, shipping supplies, packages of blank mailing labels, bubble wrap, etc., etc.  Even mileage you drive to  and from a store to buy those large envelopes or empty shipping boxes, and the mileage you drive to and from the post office to drop off your packaged sales.  In certain circumstances, you might be able to deduct (write off) electricity in your home office, or rent on a storage unit if you have a large inventory to unload.  

Your best bet on knowing what you can deduct (write off) on your income tax return is to work with a tax preparer.  I have had good success with my local H&R Block office.  

Another big tip is to start your eBay business low and slow.  Slow:  I see you have eight current listings.  Don't add a lot more until a few of those current listings have sold.   Low:  Don't start on eBay with trying to sell high-priced items.  Again, your current listings are very reasonably priced, in my opinion.  

The main reason to start with low prices is if you have to refund a purchase, you won't be devastated by the financial hit.  Actually, that's good advice for every eBay listing, but especially auctions:  Don't list it for less money than you want to get for it.  A few regulars on this board will say "Don't Do Auctions Ever", but some of us find they still can work.   

What records to keep:  Keep receipts from Staples or Walmart or wherever you buy your shipping supplies.  eBay will make monthly reports of your sales transactions available to you, usually on the first or second day of each calendar month.  

One more tip:  Read posts and answers in this Selling community often.  Not every day unless you want to.  I think it's the best way for a new seller to learn real lessons.  Well -- the best way to learn a lesson is if/when you lose money on a sale, but there are a lot of people here who have been on eBay for years and can (try to) help you avoid those potholes. 

[isaiah53-57]

Do not list ANYTHING you cannot easily afford to lose - ebay has a "100% Money Back Guarantee" for buyers - They take advantage of it and YOU are on the hook for it - Every single item you offer is at risk for buyer fraud and some are fraud magnets - Lots of ways it happens, but to keep it simple here's an example:

You sell a $400 work of art or coin or electronic device - Buyer says its "not as described" - You HAVE to accept the return - Buyer sends several sheets of blank cardboard back to you - You are out of luck.

Dont just walk in thinking its gonna be easy like it used to be 20 years ago if that's what you heard - This site is like navigating a minefield in my opinion - Fees are high and they are pushing the "Promoted Listings" program to get you to double up on fees...

Lots of options out there today - Check them all out and weigh your options carefully...

[ckimodog]

@dabo6871 

Here are some important tips to be a seller:

Don't drop ship

Accept returns and pay for them

Don't list anything that you can't afford to lose

Be courteous and accommodating towards your customers, no mater what

and go here should you have any more concerns:

https://academy.ebay.com/student/catalog/

Good luck to you!

[inhawaii]

My #1 rule.

No running with the scissors.

Good luck to you on your selling journey!

[12345jamesstamps]

As a beginning expect the unexpected.

Anything can go wrong.

But heck...you are selling here...unlike many who can't or do not know how to sell on eBay. LOL.

A milestone just to be able to sell here.

Take it easy.

Some posts to you here were even too complicated and too long for me to even read. LOL.

[dbfolks166mt]

     My advice would be to take some business classes especially ones on/in cost modeling but following are my canned responses to all postings  like this. 

1. NEVER list anything on eBay you are not prepared to take the financial loss on. 

2. As a new seller avoid listing high value and high target items that scammers love. 

3. If you are wanting to make a profit build a cost model so you know what price to list items at to do so.

    Factor in ALL costs: what you paid for it, supplies, income taxes, fees, POV........... 

4. Diversify across multiple venues not everything is for or can even be sold on eBay and in some 

     cases there are better options that will net you a bigger return and save the buyers some costs. 

5. Read through this forum and learn to identify common scams before you are a victim.

6. Establish a separate bank account to handle your eBay transactions. It keeps things easy from 

     an accounting perspective and you probably really don't want eBay having access to your personal

     bank account. 

7. Make sure you setup the shipping correctly on the listing with regards to the size and weight of the item

    you will be shipping. 

8. While auctions and BIN both have their pro's and con's as a new seller I would recommend you use 

     BIN with immediate payment required and avoid using OBO. 

9. Avoid using promoted listings until you see how things go. PL can become an added and unnecessary 

    expense that provides little to no benefit depending on what you are selling. 

10. EBay customer support is useless these days and they will give out incorrect information simply to get

       you off the phone. 

11.  Utilize this forum to ask questions BEFORE you have a problem, there are a LOT of experienced sellers

      on this forum that can provide sound advice. 

12. Fully read and understand the MBG, when you list items advise that you accept returns. Too many new 

      sellers believe no returns equates to no refunds and that is NOT the case. 

13. While most transactions go smoothly be prepared to deal with issues like returns, NAD's, INR's..... Factor

      the cost of those into your cost model. 

14. Make sure you do everything you can possibly do to keep your feedback and performance metrics in 

      good standing. You do not want to have your account suspended. 

15. DO NOT drop ship. It is a poor business model and in some cases a violation of eBay policy. 

[mcw1627jed]

Get a job at Mcdonalds and make more money instead.

[dabo6871]

Thank you so much

[dabo6871]

Thank you so much lol 😄

[dabo6871]

Thank You, Im so trying lol