Buying and Selling on eBay: Tips, Tricks, Problems & Questions - Page 182

 

I've avoided it, but I'm sure at some point it will become mandatory. Apparently eBay makes a profit on it, else why would they even bother, right. I have actually had a few sellers, all from Canada, that said they would not purchase from a seller who used the global program. 

I didn't know that last bit... will be removing that from all my auctions promptly.

This happened to me recently too. Biatch at the USPS (who has given me hassle before; the rest of them know me by name and like me) flagged a priority envelope because I'd taped the flap down and forced the buyer to go OOP for an additional $7, saying that the contents distorted the envelope beyond what is permitted by the flat rate guidelines. I apologized and reimbursed the guy his additional $7 plus his full original shipping. No neg feedback, but I still don't think he was happy.
Recognizing that none of us has been retained as your accountant or your lawyer, the only thing I'd add is that it's my understanding that at some point these deductions phase out. Above a certain income level, you can deduct these things but it only counts for carry-forward losses, and doesn't actually reduce the amount of tax you owe in that year.
Yeah, that sucks, because you don't ever get paid for it in the first place. You could end up net negative on a transaction. Are we sure this is the rule?

EDIT:
Here's the policy:
http://pages.ebay.com/shipping/globalshipping/seller-tnc.html
This passage is, I think, the source of the ambiguity:
"If eBay finds against you in a case stemming from your Buyer’s purchase of a GSP Item, the applicable coverage amount will include all Program Fees that your Buyer paid for the GSP Item in addition to the GSP Item price. However, you will only be responsible for the amount that has been paid to you by your Buyer consisting of the GSP Item price and the amount (if any) charged by you to ship the GSP Item to the U.S. Shipping Center. "
On a quick pass, I think the net is that you will never end up net negative. You'll have to repay everything you received, but never more.

This is the part where you tell me I missed something obvious earlier in the policy, or that I'm missing something obvious in that language.
Edited by GMMcL - 3/21/13 at 2:27pm

That language seems to contradict itself.

Either way, I'm out.

I survive without shipping internationally, plain and simple.

The reason I don't ship internationally has nothing to do with the 'hassle' of customs forms.

It's all about how much risk you are willing to bear. If eBay doesn't like that I don't ship internationally, they can revise their policies.

Until then, I'm not even remotely interested.

** THIS IS NOT LEGAL ADVICE**

I know that's how it looks, but to those trained in LegalDoubleSpeak-Foo, it's less contradictory than you might think.

At its essence, it's trying to decide to whom to allocate fairly allocate costs in the event something goes sideways. Ebay and Pitney Bowes will have incurred some costs for the program. The buyer will have paid some money into the program. Where the error is the seller's fault, they want the ability to allocate all those costs to you, but -- to their credit -- they recognize that might be a bit unfair since those costs could exceed what you were paid on the transaction, so while the costs are payable to you, they're CAPPED at your revenue from the transaction (hammer price plus shipping charge).

Of course, standard ebay policies would have required that you refund the item price plus the shipping anyway, so it would seem that the amount you'd ever have to pay to make the "program" whole (i.e., beyond what your revenue was) would be a null set. Which I suppose suggests that this language must do something other than that. But I actually don't think so. I think it's here as belt and suspenders to make sure sellers who screwed something up don't somehow receive a windfall (but by the same token aren't paying punitive damages beyond just getting to net zero.

**THE FOREGOING WAS NOT LEGAL ADVICE**

Ok, after rereading it I think what it says is that the buyer is protected for the delivered price but that the seller is only responsible for the purchase price and domestic shipping.

So that would leave eBay holding the bag on the international shipping cost, correct?

I asked about this specifically when they called to pitch me on the GSP and the rep told me that the seller would be responsible for the whole bit (cost + domestic shipping + international shipping)

If that is not the case then I might look into it a bit further.

I assume most of you use quickbooks? I've been using excel but it's becoming a bit laborious, even with relatively advanced formulas doing most of the work. I'm thinking come tax time, I will thank myself if I switch to quickbooks now...

Edit: looks like 'Outright' will be all I need.
Edited by suited - 3/22/13 at 6:31am

Been happening more and more, after an item ends or I take it down if it sells on SF, I get people asking if its still for sale or if they can buy it. Obviously it would still be listed if it was for sale and you should have made and offer BEFORE it was sold. Not sure why they ask now after its sold or removed. Just annoying.

And people emailing me after bidding is over offering me more. FREAKING BID, PEOPLE! SNIPING IS NO WAY TO GO THROUGH LIFE, SON!

(Says the reformed Ebay sniper)

I snipe all my auctions, BUT if I really want it I make sure to put in a high enough bid that unless someone REALLY wants it and will pay way more then avg ebay prices they can have it. I see no benefit bidding during an auction to increase the price for no reason.

 

Didnt work out for that 50 bid RG guy did it?

+1. Sniping is the ONLY way to buy on Ebay. Decide what your max is, set the sniper for that amount, and forget about it until the auction's over.

Bidding before the last seconds of the auction is for n00bz.

Is the shipping cost tax deductible if the auction includes free shipping?

Of course.

I keep a notebook in the car and use the odometer. But you usually will be making the same trip repeatedly so it becomes easier.

Recognizing that none of us has been retained as your accountant or your lawyer, the only thing I'd add is that it's my understanding that at some point these deductions phase out. Above a certain income level, you can deduct these things but it only counts for carry-forward losses, and doesn't actually reduce the amount of tax you owe in that year.

Expenses within your thrifting business will be on Schedule C and will reduce your profit on the business. These are expenses, not deductions and there is no phase out of expenses. Your bottom line profit from your business will go to line 12 of your 1040 form, along with your other income.

And if you made a profit, then there is always Schedule SE to work on.