Sale tax on eBay

FrankyOne · Apr 3, 2016

Hei boyz.

I noticed that not many people talk about the Sale Tax on eBay. I am wondering if I have to add it to the final price when I list items in order to keep my profit margin on a given product.

It seems that if I list that the item is in New York (I am not in the USA) and the person that buys the item lives in the same state, he/she should pay the Sale Tax on the final price. After collected all the payments of the financial year, I will have to pay it back to the New York State.

Can somebody give me more info about this?

Kind Regards.

toml3030 · Apr 4, 2016

FrankyOne said:
It seems that if I list that the item is in New York (I am not in the USA) and the person that buys the item lives in the same state, he/she should pay the Sale Tax on the final price. After collected all the payments of the financial year, I will have to pay it back to the New York State.

You are supposed to collect sales tax on sales to every state that you have a physical presence in and there is a way on eBay to set it up so it collects sales taxes in those states. It may be different in different states, but in california you have to register your business with the board of equalization and file taxes every 3 months. Also in california before you can register with the state you have to either put up a deposit equal to about 6 months of sales taxes or have to purchase a bond from a third party.

FrankyOne · Apr 4, 2016

Hei Tom, thank you for replying.

When you source from Amazon (on the behalf of your buyer) means that the sale tax will be added to you, reducing your profit margin?

I would like to understand how it works.

Kind Regards.

toml3030 · Apr 4, 2016

FrankyOne said:
When you source from Amazon (on the behalf of your buyer) means that the sale tax will be added to you, reducing your profit margin?

Yes, if you have a resale license and buy things for resale you don't have to pay sales taxes for the purchase, but for amazon/eBay thing since you are representing yourself as the end user on Amazon you are responsible for paying any applicable sales taxes.

FrankyOne · Apr 4, 2016

toml3030 said:
Yes, if you have a resale license and buy things for resale you don't have to pay sales taxes for the purchase, but for amazon/eBay thing since you are representing yourself as the end user on Amazon you are responsible for paying any applicable sales taxes.

Hi Tom, thanks for helping.

I think that this is a point that many bullshitters that spread the propaganda of making easy $$$ with drop shipping forget to mention.

Since I do not have money now, and eventually, arbitrage is the only way to get me started. What would you advise me to do?

Should I simply add %$ to my listing to cover this cost upfront so I can be sure not losing money?

Kind Regards.

toml3030 · Apr 4, 2016

FrankyOne said:
I think that this is a point that many bullshitters that spread the propaganda of making easy $$$ with drop shipping forget to mention.

Think of it this way. If it was so easy, and they can scale up to infinity, they'd be doing it themselves rather than trying to tell you how to do it or selling you services on how to do it. And you wouldn't be hearing about how easy it was because no one would be stupid enough to tell you how they make such easy money because that would create instant competitors.

FrankyOne said:
Since I do not have money now, and eventually, arbitrage is the only way to get me started. What would you advise me to do?

IMO, it'd be much easier to make profits on retail/eBay arbitrage than Amazon/eBay arbitrage.

FrankyOne said:
Should I simply add %$ to my listing to cover this cost upfront so I can be sure not losing money?

IMO your profit margin should always be big enough to cover unexpected costs. All these people saying they're making bank on $2 profit per $50 item, I don't know how they're doing it.

FrankyOne · Apr 5, 2016

toml3030 said:
IMO, it'd be much easier to make profits on retail/eBay arbitrage than Amazon/eBay arbitrage.

Do you advise me to find a supplier and just list items that have a chance to be sold? Is that what you mean?

toml3030 said:
IMO your profit margin should always be big enough to cover unexpected costs. All these people saying they're making bank on $2 profit per $50 item, I don't know how they're doing it.

I think that many outside the US do not know much about all these caveats.

toml3030 · Apr 5, 2016

FrankyOne said:
Do you advise me to find a supplier and just list items that have a chance to be sold? Is that what you mean?

I mean buying something at a store during distress sales or buying something that's not available elsewhere and selling it on eBay.

FrankyOne said:
I think that many outside the US do not know much about all these caveats.

If you're trying to do eBay arbitrage from outside US, you are at an instant disadvantage over someone who's doing it here. Just not having a working US address and phone number puts you at a great disadvantage against someone who does.

mangobull · Apr 9, 2016

been charging customers my state sales tax

BobDoleBobDole · Apr 10, 2016

what are the rates for different states

naizarak · Apr 10, 2016

BobDoleBobDole said:
what are the rates for different states

http://bfy.tw/5Bqz

sammyd · Apr 11, 2016

You can just collect the sales tax on ebay. If you look at the listing of many dropshippers you will see that they collect sales tax on their ebay listing in the states where amazon is required to collect it. These are dropshippers with tons of listings so the sales tax doesn't seem to stop them.

Sale tax on eBay

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