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I’m taking a wait and see approach. If we do have to collect taxes in the end, I’m going to see if it is worth the fee to use a service like taxjar. I would imagine there will be more businesses like taxjar popping up if every online sellers needs to collect taxes. I dont think I would try to collect and remit all myself.
If a service like taxjar is too expensive it could be an opportunity to open a local store. There would be less options to buy online with all the sellers that would leave so maybe buyers will be more willing to buy locally.
Amazon continues to increase free and change policies. Some of those changes are :
-FBA in September will have monthly long term storage fees in addition to the regular monthly storage fees. So anything older than 6 months will be charge a monthly storage fee and a monthly LTSF. LTSF used to be every 6 month but will be monthly from now on. The monthly LTSF is less than the 6 month LTSF but, when you add the total you will pay every month it will be more than the 6 month LTSF.
-FBA is setting inventory limits based on your inventory performance index, which is a number Amazon give you based on how much you sell, how much you send in, and some other things. The score is from
1-1000 and if you have less than a score of 350 Amazon will put limits on your storage. If you have a professional account and your number is above 350 you have unlimited storage. If you have an individual account you will have inventory limits.As far as my status on FBA, I will be downgrading my account from a professional account to an individual account because I no longer sell 40 items a month. I just dont send in as many items because the fees are higher and it really narrows what is profitable to send in. It was fun while it lasted and Ill still use it at a limited capacity.
Hello, and thanks everyone for the replies. Just wanted to give everyone an update on what happened with the return. This might sound weird but, when I handle returns or talk with customers I try to be as much as I can like a robot with no emotion and as if the case and all the details of the case went into an algorithm and a result is spit out automatically. I try to write messages that sound like a robot wrote them like “According to our records this item does not quality for a return, feel free to contact us if you have any questions. Thanks” Taking the emotion out of it helps.
I decide if I am going to dispute a refund based on 4 factors:
-Likelihood of winning the case (is it a clear cut case or will you have to fight for it)
-Time it will take to get a result, calling ebay and time you spend thinking about the return when you
could be focusing on something else (opportunity cost).
-The value of the item
-Is the buyer intentionally sending a broken item back or were they just not careful enough?I receive very few returns, probably one every 100 sales, so returns are very rare. I also always keep a little bit of extra money in my paypal account just in case I need to give a refund so that the money will be there. I figure it is just a small cost of doing business.
With this case mention on my original post I decided to give a refund to the buyer based on the 4 variables I mentioned. I will go through what I was thinking with each variable in regards to this case.
1. Likelihood of winning case?: it would probably be 50/50 chance of winning. I called ebay and they encouraged me to do an insurance claim with the post office instead of filing an appeal with ebay. I got the buyer to say a little more in our communications about him taking the itme out of the box but, I figured it would go back and forth where the buyer would argue it was the post office’s fault and I would argue it was his lack of packaging that caused the damage. Although I know I am in the right, I believe it wouldnt be a clear cut case in ebays eyes, based on their response they gave me.
2. Time it takes thinking about and handling case?: I figure it would take at least 2-3 more calls to ebay to get the right person and I was thinking about it often so, the time factor was high. Here you have to consider your opportunity cost.
3. Value of item?: Value was pretty high, enough to fight a little bit.
4. Did the buyer break the item intentionally or were they just not carefully?: I dont think the buyer broke it intentionally because they were sending it back because they didnt need it anymore and they paid the return shipping. For some people this question would not matter because a broken item is a broken item but, for me if the buyer intentional sent back a different item or broke it and sent it back, I would fight a little more than if they just werent careful enough. I rarely do returns and buyers probably do returns even less so, I am a little more forgiving if it wasnt intentional.In conclusion: I believe I should not have to give the refund but, based on the information my best option was to give the refund. Although it was a valuable item it was unlikely I would win (50/50) and it would take too much time dealing with it and thinking about it, not to mention if they dispute the decision.
Just to summarize, the 4 variables I use when handling returns are:
1. Likelihood of winning
2. Time it will take
3. Value of Item
4. Was it intentionally broken or replacedFeel free to let me know your thoughts, thanks
Hello, just wanted to follow up about the salad dryer. I was able to sell it to a local Chick-a-fil restaurant owner through ebay. It fit in my car and I just delivered it myself, only 1 hour drive. I felt good about the transaction.
Well I dont read much science fiction but, since you said it was fun I went ahead and got it on Ebay for $4 free shipping. Im currently in the middle of a book so, I’ll probably read Snow Crash next.
Just to reply to some of your comments. Many government programs and services are definitely difficult to remove once they have been used for many years. For example, I dont think we should just remove social security but, young people should be able to opt out as the program gets phased out. The older folks that are already using it should still be able to use it since they have paid into it and are currently using it. Young people would be better off putting what they would pay in social security into an IRA. There are many things that should be cut from government but, one thing I think you would agree is defense spending.
Under the current tax system people do get stuck in certain locations and the prices of goods have gone up. Here in California gas tax is pretty high and they just raised the tax an additional .12 cents. I’ve had people many times ask me to buy them a gallon of gas because the gas is too expensive and they cant make it home. You notice in the grocery store as well prices of goods in a state like Arizona vs. the prices in California. Goods in grocery stores in Arizona are much cheaper.
As for Uber. I dont see anything wrong with people investing in Uber, it is their money after all. Venture capital is a common thing for companies starting out.
Well happy new year and it may take some time to finish the book but, I’ll let you know when I finish. Cheers
Definitely a long conversation. I dont think it is every man for himself rather, it would be every man can voluntarily belong to a community and share their resources as they best see fit. Community and interdependence is a good thing but, it should voluntary.
People came to this country originally to get away from their government in the country they lived. They just wanted to be left alone. This freedom is what made this country wealthy. The taxes and regulation came in after the wealth was already there. Take a poor country like Bangladesh, if we added taxes and regulations this wouldnt make the country wealthy and prosperous.
Im not saying every tax and regulation has to be eliminated but, a lot of it needs to be rolled back. A good example today in the market place is Uber. Traditionally local governments gives monopolies to taxi companies and taxi companies pay a large fee so, everyone is happy except the customer paying the high fee. With Uber people feel safe with the driver and service without the government licencing. I havent used it myself but, many people have told me their good experiences. Drivers are given reviews by the customers which keeps the drivers accountable, all without government. Most of all it is much cheaper than a traditional cab.
I respect your differing opinion and thanks for discourse.
I reread my message and sorry about that the last part didnt really belong or relate to the thread and is an oversimplification of taxes.
Although I do tend to lean towards less taxes. Higher taxes or more taxes doesnt equal better quality. Private businesses from my experience provide much better quality and are more efficient. Toll road tend to have less traffic and are better maintained, private school students tend to have better grades, and private retirement accounts do much better than social security. If the government stopped many of its activities its not as though those goods or services would disappear but, private entrepreneurs and citizens would fill that need or want in a more efficient way. This may not apply to everything but, for many things.
Not all taxes are necessary for example, state sales tax. Not all states have sales tax. If we are just talking about sale tax, would you be with me on eliminating state sales tax?
I have heard one comparison where the opponent of the tax said: “This would be like Coca Cola being responsible for collecting the sale tax for its items sold in the grocery store.” Also its not just sales tax its also state income tax that they want to collect. I here a lot of opponents saying they are not against the sales tax on the items sold, its just they feel it is Amazon’s responsibility to collect and handle the tax. Either way its not good. If the sellers have to collect it, most small sellers wont be able to handle the burden. If amazon collects it, we all know fees are going to increase a lot to compensate for compliance.
@Retro Treasures WV So, what are your plans for Amazon FBA and the future? Ive been thinking lately if amazon increases fees 1-2 times more or has more requirements I might pull out and now this sale tax thing is unfolding. I just feels like its inevitable that selling on FBA will eventually come to an end for me. Probably soon.
P.S like everyone else, I hate taxes. You get taxed when you earn money, then you get taxed when you spend that same money, then you get taxed again when you sell that item you already paid taxes on, and then you get taxed when you die (for some people).
I looked into it and yes once you accept an offer, ebay charges you the final value fee even if the payment was not received. I just looked on my account for the fee and there it was a final value free for the Hobart dryer.
If the buyer never pays and you dont open an unpaid item case, does Ebay still charge you a final value fee?
Cool Ill just wait it out and let it all happen automatically so I dont get a defect on my account. Thanks
Is there any benefit to letting it cancel on its own. Will I get any mark on my account by ebay if I cancel it now manually before the buyer pays?
I called ebay today and they said either try to arrange a shipment or cancel the order. But, they said the accepted offer will be void after 48 hours if payment is not received. Does that sound right? But, if I cancel the order I wont get my listing fee back, dun dun dunnnnn!
@Sharyn Thanks for the reply, zero feedback doesnt bother me much but, I looked up the street view of the buyer’s address and it is an open field. I can’t find anything on the buyer’s business name, not even on the government websites. I cant find anything on the individual as well. Chances are they just built a facility there, he just got his business name, and he just got his ebay account but, Im not willing to take a chance. All he would have to do is say it doesnt work and then I would have to give him a partial refund or pay the return shipping of a couple hundred dollars. I had something similar happen to me with a large printer. As for the price, anything Hobart brings big bucks. There were a few of the same Hobart dryers going for $2000 or more on ebay. They are heavy duty, stainless steel, commercial grade items. Also, he hasnt paid yet so I dont have a problem canceling the order and just relisting it, there is someone out there that is closer and would make for an easier transaction.
@Jay Thanks for the reply. I’ll definitely take down those links for future reference. Maybe Ill give my buyer the links and see what he says. I was just listening to the most recent podcast and I was about the comment on the video but, I might as well just do it here. Jay I would totally vote for you for office. I can totally see your slogan in the front of your podium when you give speeches “Give Yourself a Raise”. And you can say stuff like “Ask not what your country can do for you but, what you can sell on Ebay!” Alright man take care.FBA is still worth it for me. Im going to stick it out until its not worth it anymore. Since the fee increases and the LTSF I have just made adjustment to the types of stuff I send in. I pretty much just send in books and I just send in books with a good rank and that are at least $15-$20. I also reprice more often to keep my pricing competitive so I can sell my items in less than a year.
The thing I have been struggling with lately is shipping. Amazon used to have me send all my shipments to the warehouse really close to me but, lately I have had to ship to multiple locations that are located across the country. This has really increased my shipping costs. But all in all it is still worth it for me to do FBA for now. Although Im not sure if I can handle another fee increase or much more regulations. Forgot to mention the whole sales tax nexis in other states thing. If they start cracking down on that, I would leave FBA at that point. Im hoping I can squeeze another 4th quarter out of Amazon. Good luck to those hanging in there with FBA.
