No Fees for selling Clothing?

[vintagewatchpart]

So Ebay has abolished all fees for selling clothing on a private account.

Now more than ever surely the clamping down of businesses operating from private accounts has to increase?

I feel so sorry for those in this niche who trade legitimately as businesses who are competing with "private" sellers who just got handed a massive chunk of money.

[nigel.wales]

I have pointed out a fact that I as a business I have seller pay fees which other sellers no longer have to pay, along with the fact that I pay the correct amount of VAT at 20% on those sales which for unknown reasons you are disputing. 

If EBay and other companies continue to benefit personal sellers over business sellers then businesses in this country will not survive "Fact"

Taxes should be paid at source and by everyone  not just the honest few.

what is unfair is I pay Vat at "20% on all Sales Value" and full eBay fees when lots pay nothing.

I never posted my comments to be trolled by an eBay expert, tax expert or whatever your agenda is.

[therenewalworkshopltd]

I am not disputing the fees that are paid, or not paid by sellers.

What I am disputing with you, is that "YOU" do not pay VAT on your sales.

You are a collector of VAT for the government and nothing more.

The customer pays VAT which you charge on your sales.

I am simply correcting your statement and nothing further.

If nobody corrects it, then people will go away after reading what you have written, thinking that when you register for VAT, you are taxed directly.  When this is patently not the case.

[nigel.wales]

Okay to correct my statement so it's clear for everyone to understand 

*When I sell an item 20% of the price is sell it for I collect on behalf of the government and give it to them.

*when I sell an item of clothing I pay fees which eBay take.

*when a private seller sells an item he collects no taxes on behalf of the government and keeps all the money himself.

*when a private seller sells an item of clothing eBay take no fees.

Whos better off ??? As I cannot charge more as the item will only sell for the same price.

Businesses are no longer worth setting up as they're not supported by the government or large corporations.

End of discussion.

[martial_pete]

The way VAT works is that it is added on to the sale price (hence the name Value ADDED Tax) so if you sell an item for £12 then you have sold it for £10 + 20%

If you sell an item for £10 then you have sold it for £8.33 + VAT

The VAT you should pay on turnover (whilst the rate is still 20%) is actually 16.67%

[bricklanebargains]

"what is unfair is I pay Vat at "20% on all Sales Value" and full eBay fees when lots pay nothing."

This is actually the most unfair part for VAT registered UK businesses like us who sell in online marketplaces.

And yes I know that, as sellers, we collect tax on behalf of the government but that doesn`t make it any less unfair.   

I just heard about something called the "VAT Margin Scheme" which apparently is designed by HMRC to alleviate the tax burden on businesses that mainly sell used items. Under this scheme, seller is obliged to only pay 16% VAT on the difference between the purchase and sales price which sounds amazing. The issue is HMRC wants to see purchase invoices for every item which could be difficult to obtain for sellers who buy from carboots,  charity shops or other individuals online. I`m thinking of ringing HMRC to get more details on this since my accountant is clueless.    

[therenewalworkshopltd]

First, change your accountant.  If they can't help you with something as simple as a margin scheme, they are a waste of time.

However, it can/cannot be a good thing to use a margin scheme.  It is a calculation that you have to sit down and work out.

Basically, it is going to depend on what exactly your able to claim VAT back on.

So if you have a lot of overheads such as rent, rates, electric and so on, it is more likely, that you will be better off with the standard VAT.  Simply because on a margin scheme, you cannot claim any VAT back directly.

https://www.gov.uk/vat-margin-schemes

I actually disagree with you about the unfair part of this.  There is a threshold, that allows younger/smaller business' to grow without having the burden of VAT.

Once big enough to cover it, you should have your major costs reduced etc and it's not such a burden.

The problem comes, with those who are actually business', but do not register as such.

But frankly, with the various "private" sellers out there, there aren't going to be very many that exceed the VAT threshold.  And even if they do, then Ebay will force them to register.  VAT is much harder to get around than other taxes.

[nigel.wales]

I truly believe that this is a AI bot responding to these comments as no human could be so robotic and have so many errors in their knowledge.

Don't waste your time responding to this.

[therenewalworkshopltd]

Ok, so first I'm working for Ebay and now I'm a bot.

Seriously?  What errors exactly are these that your referring to?

Especially considering the fact that you made the error in the first place, by stating that you paid VAT!

The clues in the name Value "ADDED" tax!

So instead of insulting, defend your stance!

And I especially like the fact that you can't even respond to the correct person on the thread!

[nigel.wales]

Ha ha, definitely a bot!

[therenewalworkshopltd]

Fool.  A bot who runs their own company and shops.

And too lame to prove their own point.

[knittednfitted]

These comments are a prime reason why 99% of people fail at reselling or business in general. First off its ebays platform they can run it how they please. And they are not beholden to you whatsoever. They built their own brand and platform, you just use their platform to sell on. Instead of complaining about how unfair this is. Think of it as a problem you have to solve. Too much unfair competition now on ebay? Why not stop whinging about it and make your own website, your own platform. Then you have far less competition. People worry far too much about what others are doing and as a result give up. Theres a reason only 1% of people actually make it in business, and its because they knuckle down and overcome obstacles that the rest just complain about. If you want to sell on ebay you do so in full knowledge that it is their platform and they run it however they please. And if theres unfair competition. Do something different. Or find a solution. Or do better research and find way better products. Take better pictures. Build a trusted brand. Use social media to build yourself, so many things you could be doing to expand both within and outside of ebay. But instead you *bleep* and moan. Ebays always been tough to get by on alone. Which is why people use social media and build followings on that. Then you can branch out into other avenues and earn passive income. Look for solutions instead of moaning about problems or you will fail, every damn time

[shopping-ferret]

Unsure that comment is relevant here? 

...And made by a 'member' with ZERO feedback giving advice on how to be a successful seller on Ebay won't be taken seriously by anyone.

Some complaining is just people letting off steam. It's therapy and some advice offered, often helps. Some is valid and if enough complain, may one day be taken on board by Ebay, who are only as successful as the customers who support them.   

[knittednfitted]

What i would do if i was selling clothes on ebay is not sell what everyone else is selling. I would handpick my items so the competition is far less. I would take better pictures than others. I would build a brand from the get go with a means to eventually having my own website. I would use tiktok, instagram and any social media platform under the sun to showcase my latest finds, my latest items. Eventually with a following on social media, i could have my ebay store link in the description or linked to my videos. Then i could eventually do that with my own website. Now you have a brand, a following and your own website

[knittednfitted]

its relevant because most of the people have already given up. And come off as whiny quitters. Ebay is competitive. And is unfair. But they also offer you Somewhere to sell where you don't have to advertise yourself. Everything is ready to go but it comes with some caveats. This being one of them. So your options are you can give up because of how unfair it is. Or you can do something about it. Find solutions. I don't care if people don't take me seriously. What i am saying is sound and accurate 

[shopping-ferret]

Some good (and obvious) advice there, but not everyone is selling in a more niche market - say for example, as your username suggests, you design and make knitted clothing, possibly even to order or get them manufactured for you?  What I have found is that for every good idea and upgrade you make, somebody out there is going to copy you.  I don't mind the competition, so long as people don't take my photos and descriptions etc.  Apparently, unless photos are watermarked, Ebay permits all this.  I have been a seller for 18 years and have experienced this time and time again.  I don't want  to advertise on SM, nor have my own website, as this does not work for my business model - unless I was obtaining goods in bulk at massive discounts - which generally I do not.  Plus if your business is something different or niche, hard to obtain, or hand made merchandise or you are a rampant SM user and have a 'following' or can get someone who others think are someone important, to endorse your 'brand'.   Being a re-seller of branded items, as I am, much of your above advice is irrelevant.  I get a lot of traffic on Ebay and have seen my small business go from strength to strength and endure all the obstacles.  Yes, I have huffed and puffed and got annoyed and frustrate; but then take the challenge of new restrictions or competation that come along.   

I get Ebay is a profit bassed business and also has to comply with local and international restrictions.  Personally, my complaints are often the hypocrisy and failings of Ebay to actually follow their OWN regulations!!  Or the constant technical issues they fail to address.  Or poor customer service support.  

I am really happy that HMRC have at last taken the steps to make all selling platforms reporte private sellers' sales activity.  A lot of private sellers are the ones complaining - not so much the businesses sellers who are playing by the rules.

Right it is post office time now... got to get all my sales posted!

[iluvneighbours]

EBay hasn't taken action against a seller I reported. They have a thousand brand new with tags Zara items listed but are registered as a private seller. EBay doesn't care.

[hudsonsclothes]

Whether your account has no history or not, at the risk of getting a bit of flack I d agree with you. I've only been on here 6 or 7 weeks and things are going decent. I have however looked back through old forum threads just for a better understanding of how eBay works and the pitfalls and noticed there are some (not all) who do blame eBay for every single thing. eBay does score a lot of own goals from my observations however a lot of the hurdles and frustrations felt on this site would be exactly the same if you opened a traditional bricks and mortar business. You'd have competition undercutting you, rules and regs that are a nightmare, low traffic and sales at certain times etc it is about finding ways to overcome it, if it was easy everyone would have a business.

That being said I do also agree with many that there are simple fixes that eBay do not deal with that are also very frustrating such as business sellers selling on private accounts to save on fees or overseas accounts selling cheap tat with poor service and giving buyers on eBay a bad experience and making them turn away from the site.

[mutherskamp]

Hi you are correct in what your saying it does have a huge platform and reaches a wide audience but it is most definatly not what it was for a small business seller selling second hand clothing* for a private seller can list 1000 free a business seller who pays shop subscription can’t even list half of thatAll these free listings mean they can offer cheaper prices as have no outgoings before they start so you have to pay promotion fees just to get noticed no matter how long you have been selling with 100% feedback, no loyalty from eBay as a reputable sellerThe competition of other platforms eBay now has you would think it would help to keep its trusted sellersNow I’ve also read the extra fees charged to sellers if selling abroad using GPS so is it going to be worth the hassle and costEBay no longer seem to want the small scale businesses which helped build the platform to what it was They allow platform to sell Chinese items on UK platform, thought it had to have UK registration, why they allow this large companyThere are so many things going wrong with eBay which was a great platform and sellers who have been using the platform for years have seen its decline in being a trusted platform for the sellers



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[nigel.wales]

Sounds like advice from a very naive person who is just starting out in business and will soon learn.

So for a life lesson, imagine you open a retail store, you stock it up and pay rent, rates electricity, staff and many more expenses then on opening day a man stands outside with a bag full the same items you're selling and starts selling them from your doorstep.

would you be happy?, would you allow it?

I think not because it's unfair competition and the man is probably not declaring his profits which incidentally are probably much higher than yours.

The point of the first comment is to point out that unfair competition is killing businesses and helping people cheat the system doesn't help matters. No fees for private sellers will only attract more people who cheat the system and pay no fees and taxes.

[1956glyn]

Regarding your last paragraph i fear you are right..........but once Ebay start demanding NINOs this should put a dent into this kind of activity if they have multiple new or older  accounts?