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Buying and Selling on eBay: Tips, Tricks, Problems & Questions - Page 1171

post #17551 of 17564

See, the difference is in how you track consignment sales.

 

I don't factor in the cost of those until I pay for them (ie, after the item sells and I get feedback (or the end of the next month end, whichever comes first). I put the actual amount given to the client in the cost for the item.

 

There are also two different ways to track sales -you either factor in the cost of everything purchased versus everything sold (the way I do it), or you only track what sells that year (the way you do it). If I tracked things the way you do, my profit margin would be considerably higher.

 

I'll give you an example of two items, a normal sale and a consignment sale:

 

Normal:

Item cost $10.80. Item sold at $24.99 +3.76 shipping ($28.75 -10% =$25.88 (10% is roughly what it averages out to between PayPal and Ebay fees with TRS discounts and a Mid-Level store)). Item cost $3.11 to ship, and packaging cost $.10), so total sale for the item = $22.67. Total profit = $11.88 (profit % = 209.9%)

 

Consignment sale works essentially the same -I'll use a camera lens as an example:

 

 

 

Nikon 20-35 f/2.8 D-IF Lens

 ($350 to consignor, item sold at $$449.99, shipping charge was $20, shipping cost was $12.32 

 

$469.99 total sale ($422.99 after fees), $362.32 total cost. $60.67 profit (+16.75%)

post #17552 of 17564
Quote:
Originally Posted by Fueco View Post
 

See, the difference is in how you track consignment sales.

 

I don't factor in the cost of those until I pay for them (ie, after the item sells and I get feedback (or the end of the next month end, whichever comes first). I put the actual amount given to the client in the cost for the item.

 

There are also two different ways to track sales -you either factor in the cost of everything purchased versus everything sold (the way I do it), or you only track what sells that year (the way you do it). If I tracked things the way you do, my profit margin would be considerably higher.

 

I'll give you an example of two items, a normal sale and a consignment sale:

 

Normal:

Item cost $10.80. Item sold at $24.99 +3.76 shipping ($28.75 -10% =$25.88 (10% is roughly what it averages out to between PayPal and Ebay fees with TRS discounts and a Mid-Level store)). Item cost $3.11 to ship, and packaging cost $.10), so total sale for the item = $22.67. Total profit = $11.88 (profit % = 209.9%)

 

Consignment sale works essentially the same -I'll use a camera lens as an example:

 

 

 

Nikon 20-35 f/2.8 D-IF Lens

 ($350 to consignor, item sold at $$449.99, shipping charge was $20, shipping cost was $12.32 

 

$469.99 total sale ($422.99 after fees), $362.32 total cost. $60.67 profit (+16.75%)

OK, that makes more sense but not sure your 209% profit is correct. If the profit is $11.88  on a cost basis of $10.80, you made 110% profit. not 200+%.

 

And we track consignments basically the same. Ex.  - This item I made 30% on. ($43.50 profit on $145 sale)

Sold Price Shipping Ebay Paypal Comish Paid out
$145.00 $9.72 $13.80 $4.51 $43.50 $73.48
post #17553 of 17564
Quote:
Originally Posted by Brianpore View Post

5 day handling time...really? peepwall%5B1%5D.gif

That's awsome

That payment need to really clear before she goes.
post #17554 of 17564
Quote:
Originally Posted by SpooPoker View Post
 
Quote:
Originally Posted by Brianpore View Post

5 day handling time...really? peepwall%5B1%5D.gif

That's awsome

That payment need to really clear before she goes.

I get nervious shipping $500 suits :lol:

post #17555 of 17564
Quote:
Originally Posted by Brianpore View Post

OK, that makes more sense but not sure your 209% profit is correct. If the profit is $11.88  on a cost basis of $10.80, you made 110% profit. not 200+%.

And we track consignments basically the same. Ex.  - This item I made 30% on. ($43.50 profit on $145 sale)






















Sold Price Shipping Ebay Paypal Comish Paid out
$145.00 $9.72 $13.80 $4.51 $43.50 $73.48

Sorry, yeah 109%... Coffee is creeping into the nooks and crannies of my brain now.
post #17556 of 17564
Quote:
Originally Posted by Fueco View Post


Sorry, yeah 109%... Coffee is creeping into the nooks and crannies of my brain now.

You actually have to take into account all your unsold backstock to calculate your IRS taxes right?

post #17557 of 17564
Quote:
Originally Posted by FlorianQC View Post

You actually have to take into account all your unsold backstock to calculate your IRS taxes right?

Yes and no. There are multiple ways to calculate business expenses and profits. The way I do it, purchases made this year count towards this year's costs. If those items sell in 2015, on paper they are pure profit. It's not as accurate, but it works for the IRS.
post #17558 of 17564
Quote:
Originally Posted by FlorianQC View Post
 

You actually have to take into account all your unsold backstock to calculate your IRS taxes right?

 

 

Quote:
Originally Posted by Fueco View Post


Yes and no. There are multiple ways to calculate business expenses and profits. The way I do it, purchases made this year count towards this year's costs. If those items sell in 2015, on paper they are pure profit. It's not as accurate, but it works for the IRS.

 

Unless you have over a million in gross receipts you can file on a cash basis accounting method.  Meaning, you deduct the expenses when incurred, not when the item is sold.  See IRS Publication 334.

post #17559 of 17564
Quote:
Originally Posted by Brianpore View Post

How would you describe this? The little silk like things


I believe thats part of the canvas losing integrity, but I'm not positive.
post #17560 of 17564
@Brian, are you calculating your consignors payout as your cost of goods.  Essentially its what it cost you for the sale.  That is pure deduction as a business expense, but does go against your bottom line, as it increases your expenses.
Quote:
Originally Posted by DanM View Post
 

 

 

 

Unless you have over a million in gross receipts you can file on a cash basis accounting method.  Meaning, you deduct the expenses when incurred, not when the item is sold.  See IRS Publication 334.

+1.

 

Quote:
Originally Posted by Fueco View Post


Yes and no. There are multiple ways to calculate business expenses and profits. The way I do it, purchases made this year count towards this year's costs. If those items sell in 2015, on paper they are pure profit. It's not as accurate, but it works for the IRS.

I do the same.  I think technically, you are supposed to pay taxes on unsold inventory, based on your list price for the items still shelf sitting.  But I do the same as Fueco (you), and deduct immediately when purchased (so everything for 2014), and the sales that take place in 2015, are pure profits, with no deductions since it was already calculated in 2014 taxes.

post #17561 of 17564

Mens or Womens.... can be buttoned either way.  My guess was Womens but can someone confirm 100%? Spoo?

 

Also have a minor concern it's not 100% authentic, stitching label and not straight cut seams :puzzled:

 

Tag Size XL

Chest - 21.75"

Shoulder - 19.25"

Arm - 26.5"

Length BOC - 30.00"

 

 

 

 

 

post #17562 of 17564
Quote:
Originally Posted by Brianpore View Post
 

Mens or Womens.... can be buttoned either way.  My guess was Womens but can someone confirm 100%? Spoo?

 

Also have a minor concern it's not 100% authentic, stitching label and not straight cut seams :puzzled:

 

Tag Size XL

Chest - 21.75"

Shoulder - 19.25"

Arm - 26.5"

Length BOC - 30.00"

 

 

Whatever it is, it's baller.

post #17563 of 17564



 

post #17564 of 17564
Quote:
Originally Posted by FlorianQC View Post
 

 

Warning: Spoiler! (Click to show)

 

 

 

 

Why?  Why would someone...?

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