How many of you earn your living off ebay?

motorguy

stevew8975 wrote: »

And with regards tax, it's completely transparent to authorities, and is a figure that makes people go :eek:

Are you saying ebay selling is transparent to the tax authorities?

londondealer

Oh blimey I have been selling on ebay for years I honestly didn't realise that the money had to be declared for tax reasons. I am a small time seller with a feedback score of 169 over 5-6 years. I'm worried now!

custardy

i doubt 169 sales in 6 years is a huge worry tbh

londondealer

And thanks again custardy!

soolin

custardy wrote: »

i doubt 169 sales in 6 years is a huge worry tbh

Makes no difference how much you sell any income must be declared to the Inland Revenue.

Occassionally the tax man does have purges on ebay sellers so it is worth considering making a declaration and declaring income rather than just getting caught and paying a fine. Remember though that all expenses are allowed, all those postage costs and packing costs are a legitimate expense and can be claimed.

baffcat

pgilc1 wrote: »

Personally, my impression of earning a living on ebay are

(a) the margins tend to be waifer thin
(b) you tend to be able to ride the wave for a little while - until some other sod starts selling the same item at a penny cheaper than you.
(c) there is no customer loyalty, it tends to be price driven.
(d) its all logged so Mr Taxman will know about everything you do if he so desires.
(e) as others have pointed out, ebay can kick you off for one of a thousand reasons
(f) having a good day / week / month doesnt mean diddly, the next month could be bad and you might never even know why.
(g) its seasonal. You could sell anything on ebay between now and christmas, but that wont be an indicator of what happens the rest of the year.
(h) there is a big difference between earning as a sideline and earning enough to make a living. For example if you sell 20 items a month and make £200 in total, can ebay sustain you selling 200 items a month to make £2000?

Like any subjective answer, they're ONLY one person's impressions.

I sell a lot on ebay. I make a good living at it. My margins are nowhere near 'wafer thin'. In fact, they're far better than I could probably make selling anywhere else, and more than I made as a director of a million pound turnover company. This month I'm having to cut down my level of sales, as I'm approaching the VAT registration limit, and I don't want to exceed it. I registered with HMRC before I started trading, and I tell them about all my income. My sales aren't seasonal.

I know my product, and I buy and sell to my strengths.

Selling anywhere, not only on ebay, isn't for everyone. Making a living by selling also isn't everybody's cup of tea. But because those statements are true for some people, that doesn't make them true for everyone.

Baff

COOLTRIKERCHICK

hi.....baff...:wave: how you doing... love the sig.....:p

i have now turned selling on a ebay part of my business......its the same as any other business in sales...... some makes loads some make naff all...

all i can say is know your product.....dont just sell something because its flavour of the month.... as you could be one of the last people to jump on that product band wagon so to speak..... and be left with stock that everyone now has.....and nobody wants.....

make sure you do register with mr taxman ....as soolin has said...... the taxman looks at ebay.....at also for peace of mind by not looking over your shoulder...

all i can say is be realistic.. and honest with yourself when it comes to the amount you think you are going to sell and the profit margins..... and dont forget to factor in those 'hidden' extras......

packaging materials...... phone calls to suppliers...... interest ( if you overdrawn to buy stock ) unsaleable stock ( if you intend to buy job lots of things )

as for making a living....you know what financial comitments you have, and how much money you need to earn to live etc....... again be honest with yourself and realistic.. with your figures.... and see if it could work for you

motorguy

baffcat wrote: »

Like any subjective answer, they're ONLY one person's impressions.

Yup, thats why i put 'my impressions' and thats based on racking up about 1500 sales on ebay. But you're right its down to what you're selling, how much you've cornered your market, what the competition is like etc. For every one person who is successfully making a living on ebay, i'd say there are 1000 who are just making a few £ pocket money here and there.

baffcat wrote: »

I sell a lot on ebay. I make a good living at it. My margins are nowhere near 'wafer thin'.

I'd be curious to know what your average net margin is?

baffcat

pgilc1 wrote: »

Yup, thats why i put 'my impressions' and thats based on racking up about 1500 sales on ebay. But you're right its down to what you're selling, how much you've cornered your market, what the competition is like etc. For every one person who is successfully making a living on ebay, i'd say there are 1000 who are just making a few £ pocket money here and there.

I'd be curious to know what your average net margin is?

I'd hazard a guess that for everyone making a decent living through ebay, there are many, many thousands more who sell to earn pin money, and a few hundred who make an income of some sort, along with a salary or benefits.

I can reiterate that I buy and sell in an area that I know a lot about, that interests me, and where I know I can source items so cost-effectively that (almost) whatever I sell them for will bring in somewhere between good and huge profits. I don't have to buy stock to sell, as I've built up stock over time, which also means I don't have to buy anything unless I can get it at a price with which I'm truly happy, and which will give me the profit levels I expect and need. I'd never buy something to sell where the margin is 30%, it wouldn't be worth my while. I aim for 80%+ gross, minimum.

I have to reduce my selling activities regularly to stop myself getting too near the VAT thresh-hold. In spite of this, my net margins are in excess of 50%. The two biggest costs for me are ebay fees & delivery costs, both carrier and the post. The costs of my stock pales into insignificance compared to either of them.

Baff

StaffsSW

pgilc1 wrote: »

Are you saying ebay selling is transparent to the tax authorities?

No, I meant my tax liability - it's an obscene amount that I pay, but because it is all documented and declared, it's transparent to HMRC.

But that's not to say that ebay is not transparant. There are enough basic tools that people can find on the 'net for free to check sellers' turnovers, so you can only begin to imagine what data HMRC can pull from eBay. I truly believe that any significant traders on eBay should not worry about if they get caught, but when.

Nobody bangs louder on your door than a taxman with a debt to collect.