1. And... we're back. You'll notice that all of your images are back as well, as are our beloved emoticons, including the infamous :foo: We have also worked with our server folks and developers to fix the issues that were slowing down the site.

    There is still work to be done - the images in existing sigs are not yet linked, for example, and we are working on a way to get the images to load faster - which will improve the performance of the site, especially on the pages with a ton of images, and we will continue to work diligently on that and keep you updated.

    Cheers,

    Fok on behalf of the entire Styleforum team
    Dismiss Notice

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

Discussion in 'Classic Menswear' started by HansderHund, Jul 27, 2012.

  1. Tweets

    Tweets Senior member

    Messages:
    733
    Joined:
    Aug 9, 2012
    Location:
    Middle of Missouri
    EXACTLY, at some point it will either get redonated (Inventory writeoff) or sold, unless you are going to try to do it on an accrual basis (which I wouldn't suggest unless you are real sophisticated and really racking in the dough) I see no problem with calling it COGS. I'm a gambler at heart, and I figure I have a pretty low chance of getting audited, and if I do, I can show what I spent at thrift stores via bank statements, and that's about as much proof as they can ask for. I have a few local charity shops that don't even offer receipts so trying to track item by item becomes real hard. I would guess you are more likely to get in trouble for showing 5K in COGS and only being able to come up with 2K in receipts, rather than showing 2K in COGS and coming up with 2K in receipts even if they aren't itemized.
     
  2. TheNeedMachine

    TheNeedMachine Senior member

    Messages:
    5,339
    Joined:
    May 31, 2012
    Heh - I don't have 1% of the woolens & tweeds you have...though if I did keep the occasional sport coat that I later found a hole in, I could save them up and stuff inside the walls. But it's the drop ceiling without a real finished ceiling above it that jacks up the rates, I think.

    Good point - I'm going to need something down there - TV, stereo etc. The costs mount...

    See below re: space heater. For cooling, the space is half underground so does stay cooler than the rest of the house; summer fan might work if it's a big one.

    Agreed, compared to gas heat here which costs less (still not cheap), and I can't see using a space heater unless it's a Dyson or something - the room is maybe 400sf.
     
  3. TheNeedMachine

    TheNeedMachine Senior member

    Messages:
    5,339
    Joined:
    May 31, 2012
    I could, though they're these big ceiling vents with screw open / screw closed plastic knobs that will eventually snap off and I have to get on a ladder to open & close...plus the room size. Maybe I'll dress warm in the winter and birthday suit in the summer.

    Well, still in pre-planning stages. If/when I get it worked out, will try to take some before/after pics and post here.
     
  4. k4lnamja

    k4lnamja Senior member

    Messages:
    1,524
    Joined:
    Nov 15, 2010
    Has anyone sent items to singapore?

    I swore I didn't include that country in my list

    *nervous*
     
  5. SpooPoker

    SpooPoker Internet Bigtimer and Most Popular Man on Campus Dubiously Honored Affiliate Vendor

    Messages:
    35,882
    Joined:
    Oct 11, 2009
    Location:
    LuxeSwap
    almost every week, never a problem.
     
    1 person likes this.
  6. Reigningchamp

    Reigningchamp Senior member

    Messages:
    172
    Joined:
    Jul 11, 2012
    Feedback Extortion is real. Just got hit with my 2nd neg feedback within a month. Had the first removed since I had the messages. Need to do the same tomorrow. Sheesh.
     
  7. Fueco

    Fueco Senior member

    Messages:
    8,818
    Joined:
    Mar 8, 2012
    Location:
    Where The Buffaloes Roam
    If a buyer buys, gets item, leaves positive feedback, waits a week then requests a return, am I required to accept that return?
     
  8. Reigningchamp

    Reigningchamp Senior member

    Messages:
    172
    Joined:
    Jul 11, 2012
    No. Looks like buyers remorse.
     
  9. capnwes

    capnwes Senior member

    Messages:
    9,227
    Joined:
    Nov 2, 2011
    Location:
    The Gentleman Cave
    Looks like you use the Hassle Free returns program. Therefore, you are not allowed to Hassle, only charge a restocking fee.
     
    Last edited: Dec 26, 2013
  10. Fueco

    Fueco Senior member

    Messages:
    8,818
    Joined:
    Mar 8, 2012
    Location:
    Where The Buffaloes Roam
    

    They haven't started a return. Am I required to tell them how to do a return? I have a bad feeling about this "buyer" and will be blocking them.
     
  11. VLSI

    VLSI Senior member

    Messages:
    6,033
    Joined:
    Mar 17, 2011
    You don't have to tell them anything. It might be best to just ignore their request.
     
  12. Fueco

    Fueco Senior member

    Messages:
    8,818
    Joined:
    Mar 8, 2012
    Location:
    Where The Buffaloes Roam
    I just told them that returns have to be processed through the "Hassle Free Returns" program. I was a bit perturbed at this individual because he/she sent me two messages in the span of four hours requesting a return shipping address. The fact that someone would get all panicky at a seller not responding to an email within four hours (first email at 4:00PM, second one around 8:00PM) tells me that they aren't worth dealing with. Given that I was in a theatre in San Francisco for The Book Of Mormon when the second email with sent, I have absolutely no empathy for this person. If it wasn't for a 10% restocking fee, I would not consider the return.

    I signed up for that so I wouldn't have to deal with messaging back and forth with buyers to figure out returns. It's supposed to save time, yet I find myself spending 10-15 minutes on each return just to get people to understand that that they have to go through the process. It's not rocket science.... My wife just figured out a return in less than two minutes just now.
     
  13. suited

    suited Senior member

    Messages:
    6,400
    Joined:
    Aug 18, 2008
    

    So are COGS deducted in the year they're incurred, even if the item does not sell during that same year? Am I allowed to deduct all of the COGS sold for the items I bought in 2013 that are still in inventory come 2014? That question has been asked before with varying responses.
     
    Last edited: Dec 27, 2013
  14. MJMcRibb

    MJMcRibb Senior member

    Messages:
    1,074
    Joined:
    Jul 20, 2013
    WARNING: NOT AN ACCOUNTANT - You can deduct it all in the year incurred regardless of whether it sold or not using cash based accounting methods, which is much simpler. I believe the only time you are required to used accrual methods, which would involve valuing unsold inventory and such, is if you averaged $1MM+ in revenue for each of the last 3 years. That's why I try to keep sales to under a million a year [​IMG]
     
  15. Tweets

    Tweets Senior member

    Messages:
    733
    Joined:
    Aug 9, 2012
    Location:
    Middle of Missouri

    MJ is right, I'm guessing 99.9% of us are on the cash basis for this little hobby so when cash goes out, its a cost, when cash comes in, its a revenue. Makes no difference what year you bought/sold.
     
  16. capnwes

    capnwes Senior member

    Messages:
    9,227
    Joined:
    Nov 2, 2011
    Location:
    The Gentleman Cave
    LOL, yeah it's a super simple process. I'm not sure ebay could make it any easier, other than coming door to door to see if you liked it and personally returning it for you if you didn't. Yet, several buyers have had issues with it. At first I figured the return interface was having the normal bugs and quirks.....but now I believe it is just the buyers.

    On the other hand, it has worked like a breeze on 80% of my returns.
     
  17. jebarne

    jebarne Senior member

    Messages:
    1,600
    Joined:
    Nov 11, 2012
    Location:
    Cary, NC
    I'm certainly not either, but after reading the fules* (f@king rules) it seems to me that ATLNoob is doing it the right way.

    The ways the rules are written, whether using cash or accrual, you should maintain an inventory and when you complete your schedule C, there should be a beginning and ending inventory value based on whatever valuation method you use. Probably actual cost is our best method.

    As you point out, you get around a lot of this if you are under $1M in gross sales, but really what the IRS is requesting applies regardless. You may report, but you don't have to.

    the rule is that you deduct the COGS for what you sell in a given year, regardless of when the item was acquired. You buy 10 things at 10, but sell 5, you take $50 in COGS and now have $50 in inventory. If 2 of those items are damaged or unusable, you can take them out of the inventory and write them off as COGS. So inventory drops to 3 items totaling $30 and COGS is now $70.

    At the size most of us are on this forum, I don't think it really matters as long as there isn't any evidence that you're changing methods from year to year specifically to evade a tax obligation.

    I could be wrong, I often am. the key do doing this properly seems to be keeping the item by item inventory, which it appears the easiest way is actually the way I was trying to avoid. At least GarageSale has an inventory feature so if you set up a CSV for your inputs, you can import them in bulk and then link your auction when it is created back to the item in inventory and it will pull in the specifics included in the spreadsheet.

    http://www.irs.gov/publications/p538/ar02.html#en_US_201212_publink1000270702
     
  18. jebarne

    jebarne Senior member

    Messages:
    1,600
    Joined:
    Nov 11, 2012
    Location:
    Cary, NC
    Thats the way I'm going to do for 2013 anyway. Not sure going forward until I talk to my accountant when he is back.
     
  19. dazedstate

    dazedstate Senior member

    Messages:
    1,034
    Joined:
    Aug 21, 2013
    Location:
    San Diego
    Here's a fun one:

    I sold a Loro Piana shirt a while back. In my newbness, I didn't realize it was a woman's shirt and listed it as a Men's.

    The buyer informed me and I immediately apologized and owned up to my mistake offering return with shipping paid both ways by me. The buyer then proceeds to file a claim through eBay.

    I respond telling him that the claim wasn't necessary as I was offering the return already but whatever. I send him a prepaid return label to send the item back.

    He then escalates the case to ebay. EBay rules that the buyer must send the item back for a full refund.

    A month goes by and the label still hadn't been activated yet. EBay closes the case and refunds the customer AND he keeps the item. Fortunately they don't take the money from me though.

    Even though I got paid, I'm still upset that ebay puts up with this behavior and even rewards it. It's the principle. THE PRINCIPLE.

    /rant
     
  20. suited

    suited Senior member

    Messages:
    6,400
    Joined:
    Aug 18, 2008
    

    Well, if true, this will make this much easier for me. The only reason I would need to know what I paid for an item is if I had to value my inventory at the end of the year, which would be a pain in the ass. I no longer write down what I paid for things anymore (I save the receipts, obviously). 99% of the time, my cost has no bearing on how I price my items, because I'm going to try to sell each item for the highest amount possible - regardless of what I paid for it.

    I am having an accountant do my taxes, so he'll know what to do. I am just really hoping I don't have to value my inventory.
     

Share This Page

Styleforum is proudly sponsored by