Awesome Sales! I love the letter holder. I don't normally get things like that for myself to keep especially if I know I can sell it for $50!! I heard you say its light enough to ship First Class on one of your items and had a question. I am going through a VERY difficult time right now with USPS because they lost one of my First Class items. I had to refund a buyer $52.00 on a blouse that I shipped First Class at the end of December. I am getting nowhere with USPS, I started a Tracking Case with them to no avail. I cannot start a claim for damages since First Class is not a claimable form of shipment, any suggestions? I don't normally ship first class but decided to start since I sell a large amount of shirts and blouses. BTW, Just curious of how many miles did you log last year if you don't mind me asking? I logged about 15,000 miles in 2015 between Auctions, estate sales, traveling to source in other states, delivery and just simple trips to the post office. Thanks for all you do, I have been listening for a few years now and finally just listed my 1000 item. I work full time from home and LOVE it~
Why don't you insure with Shipsaver?
i agree with Linda. if i'm sending something First Class and it's over an amount i would not want to cover if it gets lost (basically $20+), i insure with Shipsaver.
I take the opposite approach and don't insure anything first class unless it's an exception like an item over $100 or very delicate. Maybe I have been lucky but I have only had 1 issue that I can even think of with an item getting lost or damaged in the past 2 years. I play the numbers and odds and out of the lets say minimum 500+ items over $20 I've sent first class this past year I have saved a lot of money on insurance. I probably jinxed myself but if you are doing volume that insurance adds up and based on my experience with the amount of items I have sent out compared to issues I have it it's not worth the money.Even if an item in your case $52 has an issue I can eat that cost because I have saved $500+ on the other items that arrived with no issue.I know it's a matter of preference and comfort level but I am on the side play the percentages and don't waste money on insurance for first class items with the caveat their are exceptions.
also a good answer! do what makes sense for you.
Dan, you may have been pretty lucky, and quite the gambler, however you have the experience clearly! This item was one of my first items sold using first class, I always use flat rate envelopes for my shipping my blouses and shirts but wanted to save my buyer a few extra pennies. Not worth it to me especially when it gets lost and its not insured- Thanks for all the advise,I will consider the insurance going forward if I use First Class. Next, I will have to figure out how to add insurance when selecting First Class while generating the listing? Possibly add a First Class Insurance disclaimer in my listing and add a handling fee as the amount of Insurance.. just not sure yet. Thanks Again ~ Always Be Listing:)
Shipsaver is in the ebay apps section. You can arrange Shipsaver to automatically insure every package over whatever price you predetermine, such as every sale over $50.
Its twisted cord trim....Sue in CA
thanks! i knew someone would know.
I thought you had to be approved to sell food on Amazon.
You do. Hmmm I wonder what category that coffee got snuck in.
I applied a few years ago to sell some honey we got retail arbitrage. Guess gated categories weren't so gated back then.
I sold coffee I bought at Costco on Amazon way back when I was testing the retail arbitrage arena. I wasn't food approved at the time, I sold it FBA and made a few bucks, it sold quickly.
Awesome sales as always y'all !!!! Can't help but wonder if Rayanne would make a great radio announcer as well Love how you described the bottle of Truth cologne .
i feel like i'm on Price is Right when i make these clips. "And this amazing new microwave is worth 129.99!"
I would definitely lose The Price Is Right--you get such great prices, Ryanne. I wonder if Dansk has a free replacement policy on those old pots? If so, the buyer made a really good buy. But they probably don't make them anymore.
Hate to start out the blog with an issue...but, maybe someone else had this same thing happen. I've been trying to link my Ebay, Amazon, Paypal (these 3 look like they're linked) and my Bank account with godaddy bookkeeping. Been trying for hours and can not figure out what the customer ID is for my bank account. I've tried my bank account number, routing number, Legal name on bank account, business name on bank account, email address, and anything else I could think of, but nothing is working. Talked to two people at my bank who said I don't have a Customer ID (only a login ID and Password). I talked to godaddy 3 times and they don't know what the Customer ID is either. Seems strange. The bank account choice I'm given is for a business bank account and I have a personal bank account, so that may be the problem. Been working on setting this up for hours. Any help would be appreciated. Or else, I'll call them back tomorrow. Through all of this, my smoke/carbon monoxide detectors were going off while I was talking on the phone(for about an hour..right in my office, hallway and bedroom...right outside my office door...my ears are ringing...I have no idea why he has 3 detectors within feet of each other!)for some weird reason and my husband was gone. So, quite a test of patience.
Sandy, what GoDaddy is asking for is your online log-in info for your bank account, Paypal, etc. If you have a bank account, I assume you log into the bank website to manage your bank account. If not, you need to set that up through your bank. Then enter this info into Godaddy. GoDaddy cannot access your account other than sync up the data when things change.
I have had 39 sales this week. Nine yesterday. Today, crickets. I've been throttled!
I am so frustrated. I posted my first 22 items (with two having multiples) two weeks ago and nothing. They are up on Buy It Now and because everything is below $20 I don't have any up for Make an Offer. No watchers, either. I know I don't have a 3,000 item store, but I see so many who say, "I just throw up some stuff on eBay and I make enough money to go on vacation, buy a new blender, etc." Since I don't have a store, they are up for 30 days and so the time is half over. I guess I am just venting, just rhetorical. That is all. Carry on.
I'll let others jump in, but it's going to take listing more than 22 items and two weeks for the action to start. Here's what I would do:--double check your research to make sure your prices are good.--List more --List different kinds of items--keep listing
I had someone list 600 items for me this week and only 1 of them have sold so far. It takes time. You literally need to have the mind set you don't have the item and it's not listed. The only possible thing you can do to expedite the item selling is putting it on a .99 cent auction. I assume you don't want to do that so keep listing. To add to Jay's list--buy more--list more--don't look at your current inventory--repeatThe only time you should be looking at your current inventory is to list it, organize it, or pack it. That's it.
Thanks for the pep talk, Jay. I know you are right, but with just 30 to keep a listing up, I just see the clock ticking and it frustrated me. I have a number of vintage glassware, a pepper mill,a trucker's hat and a number of craft items (things for Cricut machines which are pretty hot items for crafters). Others (not so much on this blog) make it seem like I "throw stuff up, sell it and go on vacation with the money." What are they "throwing up," gold? I just thought maybe I'd have a watcher or get someone to ask questions or ask if I'd consider an offer. I only have a dozen of views on most of my items...some more some less. I bought a number of items from an online auction today and probably paid way too much, but just looking for items to list since in the cold Midwest, there aren't a lot of options right now. This blog is so helpful and informative. I just finished episode 116 (the silent method). I'll just keep on keeping on.
I'm helping a friend get going--she sells very little at the moment but I tell her to keep listing as that is the only way to get noticed, I happen to think that constant motion also triggers something in Cassini, but of course I can't prove it. I am also trying to get her to sign on to a basic store because I believe that having a store gives you a boost in search as well.
as we say in the manifesto--http://www.scavengerlife.com/p/manifesto.html"List 500 things as fast as you can. If you list 20 things a day, then it'll take you about a month."22 items is nothing, ebay is a monster that constantly wants to be fed listings in order for you to make money.
Well with eBay limits I doubt you would be allowed 500 listing within the 1st month.That said, I love setting a listing goal per day. It's amazing how many more listings you can get up by reaching those goals. 3 extra listing a day on top of what you normally list would get you an extra 1000 items in your pipeline a year. That's huge!
I've got a small shop (about 100 items at the moment) and I agree with everything that's been said. "List it and forget it," but that means forgetting about the *items*, not your business. Keep sourcing and listing, sourcing and listing. Not only does it increase the chance of a sale, it keeps you from pointlessly thinking/obsessing about how things aren't moving and getting yourself into a death spiral. Don't just watch the 30 days tick down, list more and more items each day. It's cold here, too, but the thrift shops are open, the dump is operating, and there's even the occasional indoor flea market or estate sale. Check Craigslist, check freecycle, check your local classified ads. I can be super-guilty of coming up with reasons things won't work, or reasons NOT to do things, so I know what it is to be bogged down in negativity. Instead of focusing on what's NOT happening, try new things and make things happen.
"22 items is nothing, ebay is a monster that constantly wants to be fed listings in order for you to make money."The proof of this statement is to stop listing for even a few days--most sales stop--this goes for Etsy as well.
Agreed on all, list, list, list! It's tempting to keep checking back with stuff, but just keep going. I very much agree with even if you can't do 20 a day, just keep putting what you can up every day, or it certainly does stop. Good luck!
Well, I bought $65 worth of items through an online estate sale. My hubby is driving the 4 hours round trip to pick it up tomorrow. Hopefully, I can put up a bunch of stuff this weekend. I'd like to get enough for a basic store. I travel a lot in the summer months and I'd like the ability to turn off the store when I am unable to ship the next day. Thank you for all of the encouragement. I know 22 items isn't much since most of you have hundreds or thousands of items, but it's all I have around the house to get started. I live in a big city and I was at a thrift store the other day and saw four people with the phones on eBay while they were shopping. I guess I'll try to get to some thrift stores out of town or online estate sales to pick up inventory. You guys are THE BOMB!
Just for the record, four people picking a thrift shop at one time is nothing to worry about. The same dozen or so (actually, probably more) people pick my very favorite local thrift DAILY (most are actually there twice a day) and there is **still** inventory to be found. I'm in a medium-sized town -- so in a big city, it's probably even more true -- THE STUFF IS ENDLESS. You can do it! (Probably without driving 2 hours away to get inventory!)
Losingitagain, your name and some of your comments indicate that you are a negative person. Not a good thing for anyone seeking to be successful at something that requires a lot of self motivation. What do you think?
May I suggest that you start at the beginning of these wonderful podcasts, and listen through them. I believe that will go a long way toward boosting your confidence and knowledge. Plus, I find re-listening to older podcasts to be downright exciting, and I hope that you will find that to be the case, as well. There is a particularly good podcast about slow sales, which I re-listen to rather frequently, as well as some of the awesome interviews. Cyndi of Amazing*Taste is one of my favorites because I sell clothing primarily. You will find your own favorites, I am sure, and Best of luck.
When I started I had a few rules the insured quick sales to keep a low inventory. 1. Make minimum $10.2. Only list if it is actively selling in completed items.3. Don't list things that already have 1000's of listings. There should only be 10-20 or less active listings to compete against. 4. Price so that yours is at or near the best price.5. Pre-pack so you can play with shipping costs to be the most competitive.With these rules I kept an inventory count of 80 or less items and was making sales as fast as I could list. My best month was $3k profits and average of 1.5k. I'm now transisitoning to longer lead time higher priced items because I have less time to do it.
I have some questions about Bonanza. What's the general set up? You sign up and then choose for it to sync your eBay items? How do you get notified if something sells. I'm just wondering how close it is to eBay as far as the selling side. Do you have any tips or advice on setting up an account or selling on there in general?
Yep, we get an email if something sells on Bonanza. It's an eBay clone. No special advice for selling Bonanza. Just sync your eBay store. Your listings just show up in a different place.
And do you get double the fees? I read somewhere that the cells on one platform you get a fee from both
I love the phrase "I read somewhere" or "someone told me"....It is incorrect that you get charged in both places if an item sells in on one site. Why would there be a double charge?If an item sells on Bonanza, eBay automatically delists the item and we get an emails that says "sorry this item didn't sell". Honestly, don't overthink it. This is why Bonanza is nice.
Isn't everything something you've read or heard? Even if the source is given it doesn't make the information correct. That can be true even if you get it directly from the company. You may like to read the fine print details from an official document while I'd rather hear the real deal that actually happens to real users. I choose experience over paper. That's just me though. Thanks for letting me know about the fees.
yes you do read and hear things all the time, but it's helpful to others to cite your source if you can.
Here are some random salesRandom statue my wife found for free on the side of the road - $100 oh yaaaahttp://www.ebay.com/itm/RARE-Vintage-Nude-Female-Woman-Long-Hair-Worship-Art-Deco-Figurine-Statue-/161850246101Some random cards I graded and have about $30 of costs into all 3 ($75, $64, $100 in order)http://www.ebay.com/itm/2014-Panini-Prizm-Freshman-Phenoms-Prizm-1-Andrew-Wiggins-RC-PSA-10-Wolves-/161793764557http://www.ebay.com/itm/MICHAEL-JORDAN-2003-04-03-04-UPPER-DECK-SPX-94-SPXCELLENCE-3999-BGS-9-5-/151509091133http://www.ebay.com/itm/2009-TOPPS-UFC-ROUND-2-JON-BONES-JONES-PSA-9-AUTO-MINT-RC-RARE-CHAMP-GRADED-/161392543756Got these 90's Tommy jeans for free. Very amusing descriptions. Both pockets have holes in them gross. Still sold for $50http://www.ebay.com/itm/RARE-Vintage-90s-Tommy-Hilfiger-Casual-Jeans-Mens-size-36-/16176903668990's NBA t-shirt $30http://www.ebay.com/itm/Vintage-90s-NBA-Indiana-Pacers-Reggie-Miller-T-shirt-Mens-Size-L-/151826861122Cool bear sweater $29.99http://www.ebay.com/itm/RARE-Vintage-National-Wildlife-Federation-Quarter-Zip-BEAR-Sweater-Mens-Size-XL-/151680540774Trucker hats $30 and $25http://www.ebay.com/itm/Vintage-Capital-Arkansas-Natural-Trucker-Hat-Mens-One-Size-Fits-All-/161904562309http://www.ebay.com/itm/Vintage-80s-Saulsbury-Trucker-Hat-Mens-One-Size-Fits-All-/151812822908
Dan, did you try peeling back the felt on that sculpture? Sometimes they're signed inside. What a find!
I honestly did not try to do that but that is a good idea if I come across a similar item. A funny side story to that statue is as soon as I sold it and was in the process of packing it a person messaged me and asked if I still had it and offered me $200 plus shipping for it. I sent it to the original buyer but I was like man where were you 20 minutes ago lol.
On the statue--since you are in NYC that is a piece I might have taken to an auction house "just in case" you never know it might have been significant (it probably wasn't)
I agree with Omfug. A $100 trash flip is nothing to sneeze at by any means, of course, but I think next time (and there will be a next time!) you find an interesting art piece on the street, it might be worth running it by an auction house or two.
Love the color blue.on those Dansk pots - I've not seen that color before. Great finds.I took a peek over on Shampoo & Booze. It was fun to see what you've been talking about - including the furniture you gave away. I absolutely LOVE the architecture of the place. Should present well to renters online with that curb appeal. It will be fun to see how it turns out. Congrats again!
Thought I had posted this last night, but maybe not. Just thought this was funny...a week or so ago, someone asked about ebay "Collections" To show how easy it is to create one, I made one for J&R's Tam O'Shanters....and I see two of them sold this past week...probably just a coincidence, but it does make me wonder whether I should really try and experiment with ebay Collections...just wish there was a good way to track the traffic.
Would be an interesting experiment. My sense is that no one uses eBay's collections because its a poor imitation of Pinterest. But you never know.
Ok eBay pros, I am curious, has anyone received their 1099 from ebay this year. I am on the borderline for last year (I am right at $20K in sales) and I don't want to report a different number than ebay does. Does ebay's 1099 include sales or sales minus fees?
you get the 1099 from Paypal. they include the Gross amount that was put into your account from all sources.https://www.paypal.com/webapps/mpp/irs6050w
And this is why we use GoDaddy Bookkeeping. It syncs all our accounts and we teach it what is profit and what is expenses. It then automatically keeps track of shipping, eBay fees, Paypal fees, etc. (No Cost of goods sold unfortunately)When we give our info to our accountant next month, it's already in spreadsheet form. Very easy.
Jay/Ryanne - Which version of GDB do you subscribe to ("essentials" "premium")? Thanks.
We just have the "Essential" level. I think the Premium level lets you send and track invoices, which we don't need.
Found you can ship 1st class for Ebay items with Paypal. How do you use shipsaver with it?
you can open the shipsaver app in ebay, enter the tracking number and insure that way. http://cgi6.ebay.com/ws/eBayISAPI.dll?ViewEApp&appId=insurance.inkfrog.com or you can print the label through ebay directly and shipsaver will automatically know the tracking number and you just click 'insure'.
We are about to start expanding our clothing inventory and I have a few questions on shipping.. For those of you that sell a lot of clothes, how do you deal with pricing shipping. All of our items are currently calculated as clothing is a small part of our inventory but looking through the stores of some of the clothing sellers here, I see a combo of free shipping or charging a flat rate of some sort. How do you decide what fits in a poly mailer versus a padded flat rate? Do you have one rate for t-shirts, another for sweaters, and another for jackets? The clothing we have in our store so far is calculated shipping and I am wondering if we might get a little more traction by bringing down the price on shipping.Thanks so much. My wife and I have been learning so much from all of you.
deb truervalues - Hi Geoff, it won't take long before you can pretty much guess what everything is.....in the meantime, when you are shipping, there is a place to "change weights". After you put in your actual weight there, it will recalculate and will display the different shipping methods and how much they cost.Don't overlook the regional rate A and B boxes--sometimes they save you a lot of $$In fact, we have at least 1 of each kind of USPS box. We save a lot of money every day by checking the different rates...Hey, if you can shave a dollar off every package, it can run over $100 saved a month.We use free boxes whenever possible and poly bags only when shipping in them is cheaper. The free boxes give your store a professional look, too.Oh yes, lately, we have utilized a lot of regular and legal flat rate envelopes for clothing and fabric, saving another $ .40 over the padded flat rate-Hope this is helpful....
Wow! Great stuff! The letter holder and the blue pot set are my favorites!
deb truervaluesYes, Ryanne. Those blue pots are amazing!!!! I love them! Want them in my own kitchen.
What is the best bid sniper?
I have not tried others so I can't say what's best but I like Gixen. It has worked great for me, and I do a lot of sniping.
I use myibidder auction sniper. The icon is a yellow black circle. I use it by just watching items and then just importing my watch list. Put in my high bid amount, leave my default on 5 seconds, and turn it on. Works great but you can't try to set it up at last minute or it won't go thru. I'm sure there's other ways to use it though.
I use eSnipe. No problems since I started using it over a year ago. There is a small charge when you WIN an auction. I think it's 1 cent per every dollar spent on the auction item. I haven't looked at any others, but FREE will get me looking. I like the look of Myibidder and like the free Chrome browser option. I'll definitely give this a try. eSnipe does not have a browser addon that I can find. I sent a support question to eSnipe asking if one is or will be available.
we also use myibidder, it's a plug in for chrome. free and works great.
Tried myibidder yesterday and WON the auction. Yippee!!! LOVE the little icon on the page. I heard from eSnipe - they have an addon that requires you right click on the page to get the option to bid. BUT I didn't download it yet. I probably will to give it a try since I already purchased "credits."BUT I"m switching to myibidder - free & easy. Fantastic!
Has anyone else ever thought they sold something because Ryanne did? The other day I was going through my inventory and saw a set of mini glass salt and pepper shakers. I was surprised to see them and though I'd already sold them. Then it dawned on me…no, that was Ryanne that sold them and showed them in her video. I feel like we've mind melded :)
ha, that's great. sorry!
Yes, I have come across items when searching for something that I thought I had already packed and shipped it, then realized Ryannne had done it. Had to look it up and see that my item was still for sale. Too funny! I need to look and see why hers sold and mine didn't! ha ha My Robinson Ransbottom Pasta is still on the shelf and hers sold long ago. Mine is listed for $49, including shipping. I see it way at the bottom on eBay. This should have been one of my listings that I ended and relisted to get better placement. 9 days left and it's at the bottom of Roseville pottery. hmmm! I edited the photos so they enlarge and added Best Offer of $35, $10 shipping. It may be in the wrong category...ROSEVILLE pottery. Confusing because it says ROSEVILLE, but it's not the real nice ROSEVILLE pottery. It's the cheaper kind. Didn't want to loss my item specifics by searching for Robinson Ransbottom. We'll see if it sells now. Aww.. I just looked on my other computer and there is a category for Robinson Ransbottom. Changed the category and copied the item specifics from description, so not a big deal.
Sandy fingers crossed it sells :)
Does anyone here do their own taxes? We normally do but this year I'm bringing my eBay sales to the mix. It's not enough for PayPal to send out a form but that actually makes it more confusing for me. Where do you get your totals from if you don't get the form? And do you deduct cost of items, eBay/PayPal fees, plus business expenses including gas? When you fill out your taxes will there be a spot for this? Thanks in advance to anyone that gives me advice. We can't really afford to hire someone to do our taxes this year and we've done them just fine ourselves the past 5 years.
I do my own taxes. But for the first few years I had a business, I did use a CPA. I highly recommend that you use one. But, I suspect you won't. You need to fill out a schedule C - which will have all the space for your deductions and also schedule SE - for the self employment taxes. Good luck
When I worked for other people, I always did my own taxes. The 1040 form. Fill in how much I made, how much was deducted, usually got a refund. Easy. But this is a much different experience than what we do now. Once we started working for ourselves and running an eBay store, I couldn't imagine trying to do my own taxes unless I had training. A local tax accountant shouldn't be more than a couple hundred bucks if you help organize your profits and expenses. Always good to have an extra set of eyes. We pull our info from GoDaddy Bookkeeping which organizes all our info into spreadsheets. But you can also find this info on eBay and Paypal. You just go into your accounts and start pulling the info. If you're trying to bootstrap, that's cool. It'll just take time. Call eBay and Paypal with your questions. They're there to help.
We (meaning my husband) use Turbo Tax. He used to pay an accountant who still made him assemble all the information and then probably fed it into tax software, and never produced anything other than how much we owed. Turbo Tax asks specific questions and walks you thru the entire process. Our taces have always been very complicated with our jobs, his consulting, my royalries on my writing, and my Ebay and other sales. Yet now we often actually receive a tax refund, and we know that we took advantage of every available deduction while keeping very good records. Then just press a button and it is submitted via Turbo Tax. It is an alternative for those who ate not happy with their accountant, as Jay obviously is.
I've heard good things about Turbo Tax. But there's also a fee you must pay to use TT, so it's not free. Lots of options for whatever control you want to have.
I have been very pleased with TaxACT, for another online do-it-yourself option. Simple returns are free but you have to pay for Premium version to do eBay at $20. Like Linda's, our return is complicated with salaries, royalties, consulting, and sales, and it has always been very easy to navigate. I have nothing bad to say about Turbo Tax, though, and as Jay says, sometimes having a CPA do it is the right call.
I agree, if you are confident in your accountant you should do that. You are also helping someone make a living. The cost of tax preparation is not as important to us as our confidence in the results. And nomatter what you spend on tax preparation it is at least tax deductible. I only pray for the day that we will have a flat tax, and none of us will have to waste valuable days and weeks figuring out how to navigate over 74,000 pages in the federal tax code.
I often appreciate your contributions to this group, but you are politically misinformed. Parroting fox news is not the same as having your own opinion.
Linda Shields: I second Anonymous' point. Please stick to business, because no one is buying your entitled, white, right wing BS.
Flat tax flat tax i want flat tax
Omg chill out people. Back off Linda. She's entitled to her opinion. Now on to my question, I think most of the tax stuff I can figure out but I don't get how to claim cogs. I know you can only claim cost of items that actually sold. How the heck do I do that? Even if I could assign a price to every item, eBay doesn't even allow me to see every item sold for the whole year. Now I have a pile of receipts but don't know what to do with them.But please people calm down and don't attack each other.
When I woke up, I was just going to delete this thread. We don,t recommend political discussions here, but we hope people have have opinions without personal attacks. I have no problem just deleting threads. Anonymous, figuring out COGS is the great challenge for each seller. It;s something you should have been keeping track of from the beginning of the year, especially since you;'re doing your own taxes. Many us us just keep a spreadsheet that gets updated as things sell. Again, this is where a tax professional could come in handy. You have a lot of questions. We're just random strangers on the internet. You sure you want to trust your tax life to us?
Yes, I do my own taxes and have always done my own taxes. Unless you have complicated investments or a complicated business or other "complications," it is not difficult to do your own taxes. I've been self-employed for over 20 years, but I have no employees and my "business" is very, very simple. I file two schedule "C's" -- one for Ebay, one for my other "business." I use quote marks around business because I've always considered myself to be self-employed rather than running a business owner. For cost of goods sold -- you have to keep track of the cost of each item you buy so you know its cost when it sells and can deduct that cost. There is no magic way to do this. Other people have posted that they use spreadsheets, and that's what I use. When I buy something to sell, I record it on a spreadsheet, using one spreadsheet for each year. If I buy items at a thrift store, I include the name of the thrift, the date, and for my own info, the total spent. Then I list each item I bought that day, and its cost, including sales tax. When I list an item on Ebay, I add the date listed and what I listed it for. When it sells, I add the date sold and the amount it sold for (which sometimes is less than what I listed it for).If you buy a box lot at an auction or if you get a pile of stuff at an estate or yard sale, you would assign a price to each item in the lot. But you do need to record the cost of each item you buy if you want to deduct it. If you buy something and discover it can't be sold, due to condition issues you didn't notice when you bought it or whatever, you can also deduct the cost of that item.Go Daddy is a huge help, since it records Ebay fees etc. and when something sells, you can look at your spreadsheet, see what the item costs, and add that information to Go Daddy, which does have a "cost of goods sold" category under expenses.The IRS web site itself has information for small businesses (though I think they need another category for "tiny businesses"). But if you've always done your own taxes, you are perfectly capable of filling out schedule "C" -- there are instructions and information on how to do this. You will have to pay social security/"self employment tax", as well as income tax, on your Ebay earnings, so you will need the "SE" schedule as well.If someone has not kept track of cost of goods sold, though, that will make the task more difficult.
And yes, I agree with Jay -- there is plenty of misinformation on the internet, and what/who do you trust? I suggest you look at schedule C and the instructions for schedule C, and also look at schedule SE. After doing that, you very well might want to consult a professional, at least for your first year/2015 taxes, especially since you didn't keep track of cost of goods sold. The alternative for the 2015 tax year is to include your Ebay income under "other income" (or whatever it's called -- the category that includes hobby income), but if you do that, you cannot take any deductions for any costs. For this year and on, you need to keep track of the cost of each item you buy to sell. And yes, the first year I was self employed and did taxes, it was rather daunting, but since then has been relatively easy. Good Luck!
I do my own taxes. I do not keep track of each items cost but treat each year as if I end with zero inventory. At the end of the year I add up all of my receipts for that year and that is my cost of goods. I don't remember what this method is called but I believe it's a legitimate method. I remember there being discussion about it before but I couldn't point you to the particular threads.
I envy Jay and Ryanne for having such a good tax accountant who invests his time and energy in helping them learn ways to take advantage of business tax deductions. One advantage of small town life. For the rest of us there are software packages. I love hearing how everyone approaches it.
Nancy's COGS method is called LIFO, as in "last in, first out."
thank you Temudgin
even if i lived in the city and had to have an accountant there, i would. organizing self employment taxes with all the expenses and deductions is not something i want to wade through and learn. the one time i did my own taxes online, i was audited and owed like $1500. after that point i never did them myself again. it's just worth the money to have someone do it for you IMHO. for us we now have 2 rental properties, a video production business, an ebay business, all under a GP, then split between us because we aren't marrried. thank god for CPAs!
Thank you all. This year I will not screw myself over by not keeping up with it better. But back to cogs, I know now what to do going forward, but what can I do for last year? Any ideas on how to give my items value that have sold? I can't see them all listed so should I take the sale total and assign a percentage? The easiest method may be the Nancy method as I do have most of my receipts. I'm kicking myself for not doing better.
https://en.wikipedia.org/wiki/FIFO_and_LIFO_accounting, just for people who want to research more.
How the heck did you get audited? If you made less than 200thous your odds are less than 1%. Unless your deductions outweighed your gross and made a red flag pop up. Did you do them on paper or electronic? I can easily see how you'd mess up on paper. It's beyond my brain to even look at that paper version.
it was in 2005, i was unemployed for about 6 months and had some weird unemployment payments that i think i reported incorrectly. it was very little money, but they made sure my taxes got corrected, so i assume that was an audit. this was before my taxes got very complicated, i did them myself online.
Here's how I understand it... (not a CPA - just providing personal "opinion")Accrual based accounting - you have to keep up with exactly the cost of what sold and when it sold. Cost of active inventory is not viewed as an expense until it sells. Until that time, money spent on unsold inventory is still regarded as INCOME and you have to pay taxes on it.I use Cash-based accounting - inventory purchases are treated as an expense WHEN you make the purchase. Money spent on active inventory is NOT viewed as income. You pay taxes based on the simple difference of your annual income minus your annual expenses (including the cost of inventory sold & unsold which was bought that year). WAY EASIER approach for most of us here. There are some regulations that I don't remember right now regarding limits and changing from one to the other. I found this information last year fairly easily. If further support is needed. Let me know and I'll try to track down confirmation. BTW - I used TaxACT last year for our personal and business returns.
And just to throw something else out there, I would guess most eBay sellers in the general store, antiques, collectibles, high end clothing, and art categories (and I’m sure others I have not thought of) do something called specific identification, explained here: http://www.accountingtools.com/specific-identification-method While more tedious in practice, specific identification can be valuable to an eBay seller to analyze what types of products are most profitable from a strictly purchase price vs. sale price perspective. In a general business sense it is typically only used with high value items and small inventories.
Thank you Allen for explaining what we use! I always get worried when people start talking about their spreadsheets, etc., because my husband just keeps track of what I spent on COGS and on what I sell. Cash-based accounting. Good to know it has a name! Every year i start fresh trying to keep track of everything I bought and then find it and write what I sold and it just gets so confusing I give up. I can't imagine how you all do that for years.
The term for the edging on the pillow is called cording.
ah yes, that was on the tip of my brain when i said 'rope' instead.
I've been hoarding regional C boxes because I love them. Worried I wouldn't be able to get more, so placed several orders (as soon as a pack of 25 shipped). I called the USPS Small Business Support Office today (1-877-747-6249) and they gave me the number of the USPS Postal Store (1-800-610-8734). I found out that the Regional C box is now replaced with a regular Priority Box 14 3/4 x 11 3/4 x 11 1/2" That is the same exact size as the Regional C box and they are available to order now. You pay by weight, not a flat rate or regional rate. By called the Postal Store, you can order more than the limited quantity on the USPS website. So happy to be able to get these boxes. Now I have to use up my stash of Regional C boxes (by covering up the regional C with priority tape or labels). They did not have any Priority tape to send me, but I have been asking for a roll at each post office I visit and have a stash of that too. Shh!The grouch at the airport post office gave me two rolls after giving me a lecture that it is NOT tape, it's only for marking packages that are shipped in regular (brown boxes)to identify them as Priority. He said, grouchingly, "People use it like wallpaper!". I just said, Thank you! and got out of their with my precious tape.Jay, I think you're absolutely right about the Customer ID for my ONLINE bank account to link my bank account with GoDaddy. I think my bank may have changed it to logging in with that and the login ID and password. Going into the bank tomorrow to figure that one out. Thanks!
that's funny, i was hoarding them too! i have a huge stack in my storage. i should have assumed they would just make a plain Priority box that size after Reg C was ended. but you never know with large organizations what they'll do.
Amazon prime membership on sale this weekend for $73 FYI. I think they had this special a couple of times last year. Should be convenient for getting free non-priority boxes too.
now i'm tempted to get Prime. i'm afraid i would shop too much. "Free shipping! Why not??"
I never wanted prime either until I got a free trial and saw that its more than free shipping, you can watch movies and shows, get books, etc.. Now I still don't have prime cause I'm sly and have ways to get those other things anyway but for outstanding citizens it may be good ;)
Amazon Video has some cool shows, that promo makes it cheaper than Netflix. The Man in the High Castle.
Steven, do you know if you can watch the shows on more than one tv?I too have been too cheap to get it but I might now. Did the free trail and ordered a bunch of stuff.
We lover Amazon Prime! Now when I need something I just go there and buy it. It shows up in a day or two. It does have everything you can imagine, too, such as TV series, movies, free audiobooks, and now even something just like Pandora music, at no extra charge. Some things are so much cheaper to buy there, like the jewelry wire I needed this week, and saves you a trip to the store. My sweetie just bought me a new Zebra label printer there (above my objections) after getting tired of watching me print and cut out every label for years. (Love it!) What a great price they are offering now--go for it, Ryanne! :-)
Sandy, you can have it on 4 or 5 devices. Your TV or Blueray player must have the Amazon video app to see it, but you can watch it on your phone or iPad. Chromecast doesn't have it.
We just started our free trial a couple of weeks ago. We'll see if I continue with it. Have liked the free shipping and shows.
Hey Ryanne and Jay, I was wondering if you guys would do a live picking haul by using an app called Periscope? I just started using it and it's a blast! I thought it would be so cool to see you going to a thrift or auction and doing your magic how/why you are picking among all the stuff. If not "live" what about a haul video? It would be really fun to watch. Thanks a lot! Alison
only if the thrift store had wifi, don't want to kill my Ting data
Wow...that was an awesome Dansk find. Glad you posted it and showed the condition. I think I would shy away from it because of the condition. Incredible it went for so much!