selling your stuff on Amazon...part three...

princessmoneysaver

Yes some of the fees are a bit much BUT you don't pay anything until your item sells & if it doesn't sell in 60 days then no fees are payable so I think it works as well, if not better than ebay. I have sold 2 cd's within a few days which didn't sell on ebay at all.

grimelda

Buggu,

I find it a lot less hassle. You don't need to worry about PayPal for a start. You also don't need to take photographs, pick the category or create a snappy title. The main benefit, though, is that if your book doesn't sell you don't have any fees to pay, and you can keep it listed until it sells.

becky004

buggu wrote:

Never sold on amazon before but the 17.25% fee seems high, not to mention the additonal martketplace and admin fees. Is there really good money to be made on amazon and how easy is it compared to ebay?. The site doesnt seem well setup for selling.

I found ebay a bit too time consuming, I admit Amazon fees do appear quite steep but they also give you a postage allowance. Its really easy to list on Amazon, and the money definitely comes in handy. I work full time but am working really hard at the Amazon selling at the moment as OH is off work for the forseeable future and at the moment am selling really well although my first 2 months were poor as I didn't have much listed.

smartcat04

Been thinking today as it's getting towards April 1st. Do I need to think about declaring what I earn from Amazon to the taxman or register as a small business.
I have a full time job already and just sell off my own books and cd's that I no longer use. Would the taxman have to prove otherwise or is there a earnings threshold above which I would have to pay tax ? Bit naive to tax issues so thought somebody would know.
Thanks in advance.

becky004

smartcat04 wrote:

Been thinking today as it's getting towards April 1st. Do I need to think about declaring what I earn from Amazon to the taxman or register as a small business.
I have a full time job already and just sell off my own books and cd's that I no longer use. Would the taxman have to prove otherwise or is there a earnings threshold above which I would have to pay tax ? Bit naive to tax issues so thought somebody would know.
Thanks in advance.

Got me worried now, surely people selling off their own stuff on ebay don't pay tax? How would nice Mr Tax man find out? If its only a few hundred books or cd's that could be your own stuff, wouldn't you need thousands of books to class it as a business? I'll have a breakdown if I have to class it as taxable income! Would have to stop selling!

princessmoneysaver

I'm presuming that it will apply the same as ebay, if you buy something to sell on for profit then you will have to pay tax, if you sell something of your own personal persessions then no tax is payable (sorry can't spell at the moment lol)

tabath

Sorry for seeming thick but whats this RISI people keep mentioning?

soolin

YvonneCrossland wrote:

I'm presuming that it will apply the same as ebay, if you buy something to sell on for profit then you will have to pay tax, if you sell something of your own personal persessions then no tax is payable (sorry can't spell at the moment lol)

That's correct. If you are selling your own personal items then the only tax you would ever be subject to is capital gains tax, and frankly unless you are selling thousands and thousands of pounds worth of items every year this would never apply.

However, if you buy anything even from a charity shop to sell then that is trading. Again though realistically the tax man are not going to be bothered about a few books a month, technically it does need to be reported though. If you sell on ebay as well, then profits from both sources can just be added together on a basic spread sheet for tax purposes.

Soo

larmy16

becky004 wrote:

Got me worried now, surely people selling off their own stuff on ebay don't pay tax? How would nice Mr Tax man find out? If its only a few hundred books or cd's that could be your own stuff, wouldn't you need thousands of books to class it as a business? I'll have a breakdown if I have to class it as taxable income! Would have to stop selling!

The thing is, if you want to continue to sell, then eventually the book total is going to go into much higher figures. If you go to car boot sales and charity shops hunting for books to sell on, then you are trading and as such are liable to pay tax on your profits. It is a tricky and annoying situation.

When I started selling on Amazon I bought a laptop, but now my profits have exceeded the amount I paid for it, plus packaging etc. I believe now is the time to start keeping strict accounts regarding Amazon. I am already self employed so will not have to register as such, but if you are already working full time, then presumably you will be earning way more than your tax free limit and would really be liable to pay probably 22% tax on your income over about £7,000.

I think it is a risk - like any undeclared earnings, will you or will you not get caught??? I understand the taxman is very interested in ebay and amazon traders as they know there is likely money to be had for them!

Also, a postlady told me recently that ebay etc has changed the nature of the post office and it is due to the amount and weight of parcels that they have had to reassess their charging system.

Whether the IR have enough staff to cope with all these traders is another matter. It is definitely food for thought though

soolin

Also, a postlady told me recently that ebay etc has changed the nature of the post office and it is due to the amount and weight of parcels that they have had to reassess their charging system.

This is pricing in proportion and comes into effect in August. Here is the latest update on it:

http://www.pricinginproportion.co.uk/index.asp?Adlink=ID1

I have my free help pack already and worked out that it will increase my postage charges in almost all instances. This new scheme is on top of the 3rd April routine price increases.

Soo