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How to make money on ebay paying my taxes???

by cdsemmegas
9 replies
hello

I'm a little confused how to make profit and paying taxes. If i don't pay taxes it is possible to make some profit, but with the taxes is impossible.

Imagine that i buy a Iphone for 500USD. With a VAT of 23%, is this the value i pay in my country, the iphone have a price of 615USD. If i sell in ebay for 650USD with A fee of 7% in ebay and 3% in paypal the item have a price of 680USD.

IT IS DIFFICULT MAKE ANY PROFIT AND WITH THIS PRICE IS DIFFICULT TO SELL THE IPHONE.

i HOPE SOMEONE WITH MORE EXPERIENCE CAN HELP ME.

thanks
#ebay #make #money #paying #taxes
  • Profile picture of the author Simmeon
    Buy a product that has the demand but not the hefty price tag.
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  • Profile picture of the author Tad 100
    This is because you want to resell super popular products. Mobile phones, laptops and other similar products are very hot and competition is huge. You will not make more than 5% profit after all fees and most of the time you need to have a lot of money to invest in to products.

    I suggest you to resell products from China.
    Signature

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    • Profile picture of the author cdsemmegas
      thanks for all the answers.

      i can buy genuine products from china?
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      • Profile picture of the author Tad 100
        Originally Posted by cdsemmegas View Post

        thanks for all the answers.

        i can buy genuine products from china?
        No, you can't buy products with brand names. Because they are fakes.

        But you can buy a lot of different products like car dvr or spy products.

        For example this seller from USA is selling product from China.
        8GB SPY CAMERA PEN HD 720P HIGHEST QUALITY CAMCORDER DV | eBay

        Same product on Alibaba:
        720P Camera Pen products, buy 720P Camera Pen products from alibaba.com
        Signature

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      • Profile picture of the author fluffythewondercat
        I know people who sell on eBay who losing money with every sale. They think that because cash is coming in, they're "making money."

        Here are the basics of selling products anywhere:

        Sales price - ((cost of goods + cost to acquire goods) - (fees + taxes)) equals Profit

        At least you realize you can't realistically sell iPhones, not at the price you'd have to pay. You're ahead of some folks.

        In the antiques business, a rule of thumb used by some people who aren't very good with their money is to sell an object for twice what you paid for it. (You buy a piece of pottery for $95 and try to get $190 for it.) This is bad business. $190 minus the $95 cost of the pot only leaves you $95, out of which you have to pay taxes and overhead. You may even have to mark the pot down and sell it at $140 instead, which means you'll ultimately make only about $15 on it.

        Whereas if you priced the $95 pot at $285 instead, you would have what is known as an ample MARGIN.

        Margins are everything in the product sales business. Ample margins allow you to do all kinds of things, like pricing the pot at $285 but putting it on sale for $239. That still leaves you a very nice profit.

        I use the antiques business as an example because it has a saying which is all-important: "You make your money when you buy, not when you sell." This is crucial to selling on eBay. If you had a chance to pay $100 for a genuine iPhone 4S, obviously you'd want to buy as many as you could at that price, because you know what they go for. And every $100 iPhone you bought is an instant $500 profit for you.

        Educate yourself on the products business before you jump into eBay. Fees are high and neophytes are easily burned.

        fLufF
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        • Profile picture of the author Tad 100
          Originally Posted by fluffythewondercat View Post

          I know people who sell on eBay who losing money with every sale. They think that because cash is coming in, they're "making money."

          Here are the basics of selling products anywhere:

          Sales price - ((cost of goods + cost to acquire goods) - (fees + taxes)) equals Profit

          At least you realize you can't realistically sell iPhones, not at the price you'd have to pay. You're ahead of some folks.

          In the antiques business, a rule of thumb used by some people who aren't very good with their money is to sell an object for twice what you paid for it. (You buy a piece of pottery for $95 and try to get $190 for it.) This is bad business. $190 minus the $95 cost of the pot only leaves you $95, out of which you have to pay taxes and overhead. You may even have to mark the pot down and sell it at $140 instead, which means you'll ultimately make only about $15 on it.

          Whereas if you priced the $95 pot at $285 instead, you would have what is known as an ample MARGIN.

          Margins are everything in the product sales business. Ample margins allow you to do all kinds of things, like pricing the pot at $285 but putting it on sale for $239. That still leaves you a very nice profit.

          I use the antiques business as an example because it has a saying which is all-important: "You make your money when you buy, not when you sell." This is crucial to selling on eBay. If you had a chance to pay $100 for a genuine iPhone 4S, obviously you'd want to buy as many as you could at that price, because you know what they go for. And every $100 iPhone you bought is an instant $500 profit for you.

          Educate yourself on the products business before you jump into eBay. Fees are high and neophytes are easily burned.

          fLufF
          --
          I want to add one useful tool below this post so that you can calculate everything very fast:

          eBay Fees Calculator 8.2 by Ryan Olbe (updated July 12, 2011)
          Signature

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          • Profile picture of the author cdsemmegas
            thanks,

            now I understand that make money on ebay is not so simple.

            and now i will not buy branded products from China
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  • Profile picture of the author elasu13
    Branded products from china are always fake.
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  • Profile picture of the author arwa99
    branded products from China are fake.
    try the accessories product from china. This can bring in profit
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