Money Moral Dilemma: Is it OK to sell items from pound shops online for a profit?

MSE_Sarah

This week's MoneySaver who wants advice asks...

Over the last few months, I have made over £2,000 selling things online thanks to MSE's eBay & second-hand selling tips. One thing I've been doing is selling £1 items from discount stores for as much as £9.99. While this has made me a decent sum, I've received messages accusing me of profiteering. Is that fair? After all, I'm not forcing people to buy things from me.

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are emailed in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

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CurlySue2017

I hope this Moneysaver has declared all of those earnings to the tax man?

Buying items specifically to sell on is not the same as selling your old used goods

comeandgo

HMRC do periodic checks on selling sites to look for frequent sellers and this person is a trader if buying to sell at a profit.

Spoonie_Turtle

CurlySue2017 said:

I hope this Moneysaver has declared all of those earnings to the tax man?

Buying items specifically to sell on is not the same as selling your old used goods

Specifically they need to declare income over £1,000 in a single tax year from it (gross, not profit) as a sole trader.

the_lunatic_is_in_my_head

Money Moral Dilemma: Is it OK to for pound shops to sell things they've purchased for less than a pound to make a profit?

soolin

the_lunatic_is_in_my_head said:

Money Moral Dilemma: Is it OK to for pound shops to sell things they've purchased for less than a pound to make a profit?

My thoughts exactly, is there some suggestion that people don’t know how businesses work? You find a product that you can buy cheaper than you can sell, and Bob’s your uncle. 

I am just in awe of anyone who has found something that is easy to source and makes that much profit, I just wish I could find something like that from a pound shop. 

NBLondon

Yes it's OK.  As long as you declare tax when appropriate; it's morally no different from buying from a manufacturer or wholesaler. 

I've received messages accusing me of profiteering.

Who from?  Buyers who realised later that they could have gone to the pound shop too?   Block them - they won't be buying from you again anyway, will they?  Jealous acquaintances who could have done the same but didn't make the effort?  Ignore them.

I have bought books, comics, magazines etc. on market stalls, read then and sold them on eBay for a small profit.

Belenus

soolin said:

the_lunatic_is_in_my_head said:

Money Moral Dilemma: Is it OK to for pound shops to sell things they've purchased for less than a pound to make a profit?

My thoughts exactly, is there some suggestion that people don’t know how businesses work? You find a product that you can buy cheaper than you can sell, and Bob’s your uncle. 

I am just in awe of anyone who has found something that is easy to source and makes that much profit, I just wish I could find something like that from a pound shop. 

These scenarios are presumably made up. If anyone is making over £2,000 profit, I would like to know how much time and effort that is taking. I suspect that the profit per hour spent is low.

the_lunatic_is_in_my_head

soolin said:

the_lunatic_is_in_my_head said:

Money Moral Dilemma: Is it OK to for pound shops to sell things they've purchased for less than a pound to make a profit?

My thoughts exactly, is there some suggestion that people don’t know how businesses work? You find a product that you can buy cheaper than you can sell, and Bob’s your uncle. 

I am just in awe of anyone who has found something that is easy to source and makes that much profit, I just wish I could find something like that from a pound shop. 

That's what I wondered, if there is something you can readily buy for a £1 and sell on eBay for £10 it doesn't usually take long for others to join in and chip away at the price until the work doesn't justify the reward, perhaps they've found something very niche? 

I also wonder whether the "made £2000" means profit or sales.

Then again I also wonder if these questions are real 

born_again

Of course it's Ok  to make money of people who can't be bothered to check the price of what they are buying. 🤣

Is this not what shops do? Buy cheap, sell at for a profit?

soolin

the_lunatic_is_in_my_head said:

soolin said:

the_lunatic_is_in_my_head said:

Money Moral Dilemma: Is it OK to for pound shops to sell things they've purchased for less than a pound to make a profit?

My thoughts exactly, is there some suggestion that people don’t know how businesses work? You find a product that you can buy cheaper than you can sell, and Bob’s your uncle. 

I am just in awe of anyone who has found something that is easy to source and makes that much profit, I just wish I could find something like that from a pound shop. 

That's what I wondered, if there is something you can readily buy for a £1 and sell on eBay for £10 it doesn't usually take long for others to join in and chip away at the price until the work doesn't justify the reward, perhaps they've found something very niche? 

I also wonder whether the "made £2000" means profit or sales.

Then again I also wonder if these questions are real 

I have always assumed they are made up and just for a hypothetical discussion, but I know nothing.

I am aware of some people who have shown me absolute proof of items bought at places like pound shop and sold for considerably more (always after the event of course) and even now I am aware of an item that sells at considerably over the pound charged at a discount shop - but unfortunately none in my local store as I’ve looked. I have even sold a few bits and pieces myself, but not in bulk, more just a lucky find.

I have also seen people who think they are making a profit, who after fees etc are actually making a small loss.