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Why You should Sell on eBay

Updated on August 22, 2014

I'm not going to beat around the bush. Most of us would rather sleep in rather than meet that rat race every work day. It's frustrating and you're ready to hang your hat. But you can't yet. If you're military, you want the pension you earned after being away from the family you love after a culmination of years. Civilians would love just the freedom. Heck, who wouldn't get on board with a legitimate work from home gig.

Well....it's simply not that easy. You have to learn certain things the hard way (see my other articles) and you really need to learn the ropes of resale just like any other side.

There are benefits once you get there. The first and greatest is autonomy. You decide when you will work and how long you will work. You can reign in the inventory you want to.

Sounds great, right? There are drawbacks. First of all, you need an initial investment in anything you sell. You also might pay insertion fees for some items. Next...if your item does sell, you have to pay a 10% ebay final sale fee, which includes the shipping fee (highway robbery), the actual shipping, and a 3% Paypal fee...also take into account the cost of goods sold.

You really need to account for all of the above with some software or an equivalent. Why? Because the IRS will simply **** your a** for any penny they can and bookkeeping will reduce what they can take away from you to give to the people who don't wish to wake up before 12 PM.

Once you establish your bookkeeping and make regular and diversified sales, you will start seeing your true profit.

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    • Aubrey Durkin profile image
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      Aubrey Durkin 3 years ago from Tucson, Arizona

      I feel ya. I haven't been, so I guess I'll see what happens...

    • Lowdown0 profile image

      Robbie Newport 3 years ago from Eugene, Oregon

      My tax accountant, that's funny. I know what you mean though, I have my own book keeping system that is very meticulous, so I can calculate the exact amount of profit I'm making. Yet, keeping receipts and this kind of thing I'm not as apt to do. It's all a pain in the you know what, especially for a non-conformist.

    • Aubrey Durkin profile image
      Author

      Aubrey Durkin 3 years ago from Tucson, Arizona

      I do have a method...but I won't file for the first time until next tax season. Fortunately I know how to book-keep. If you keep a spreadsheet of the cost you paid for each item, the shipping cost, and the Paypal/eBay fees, then subtract them from the amount you get paid in total for each item, you'll have a reflection of your actual pretax earnings. Maybe call your tax accountant ahead of time and ask if there is any specific documentation that will help, besides the W9 from eBay. You should only have to pay taxes on your net earnings.

    • Lowdown0 profile image

      Robbie Newport 3 years ago from Eugene, Oregon

      It is difficult to make a profit after all the expenses you point out, I haven't yet figured in the taxes thing. I figure once I start selling a decent amount each month, then I'll figure out that headache. It might be too late that way, but I just can't being myself to think about it yet.