It's all stupid actually.
The idea that the guberment can make someone pay sales tax on a used item is absolutely absurd. I already paid sales tax on it when I bought it.
Sounds like double taxation to me. Screw the government and their thievery.
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Reverb and eBay
- Thread starter Charliewayne
- Start date
It's all stupid actually.
The idea that the guberment can make someone pay sales tax on a used item is absolutely absurd. I already paid sales tax on it when I bought it.
Sounds like double taxation to me. Screw the government and their thievery.
reverb was cool before they started collecting sales tax.... i'm in ky where we get hit 60 dollars on every 1000. I too agree the tax on used items is wrong. Need a work around on "selling", just give it away then that person gifts you the money
Also, on TB, buyers love to lowball you since they're "saving" you Reverb fees. So you still can't make an money... lol.
Reverb (and also eBay iirc) tells you how much they'll deduct when you set up the asking price...
They do. But they do not factor in shipping and the fee they charge against shipping.
But it is a very good starting point.
Not sure if they include anything for a Bump, if you use it. I have in the past but no longer feel the need.
But it is a very good starting point.
Not sure if they include anything for a Bump, if you use it. I have in the past but no longer feel the need.
For round math purposes, I assume 10% for all of the fees.
Also, keep in mind if you sell more than $600 you will get a 1099-K from eBay or Reverb that you will have to file next tax season.
Word of advice, do not use TurboTax as my taxes for this year are stuck in limbo because the 1099 section in their software is buggy. i'm waiting for a fix on April 3 so I can file my damn taxes.
It's a huge pain in the neck and getting to the point where even though you reach broader potential buyers with eBay or reverb, the cost and aggravation factor is becoming untenable.
The $1,000 dollar guitar example is especially painful:
you buy a guitar from a music shop that cost $1000. After taxes you pay $1070 for the Guitar ($70 taxes)
One year later you sell the guitar for $900. You will receive a 1099-K from Reverb or eBay that you will have to include in your tax return, which will increase the cost of your filings. The seller pays 7% tax on the $900 Guitar. ($63 taxes)
One year later you buy the same Guitar back and pay $800, you will be charged taxes from eBay or Reverb. ($56 taxes)
Mind you this does not take into account the taxes that the initial retailer paid when they purchased the guitar from the manufacturer.
And this insanity goes on every time the same instrument changes hands. At this point this $1000 guitar has generated almost $200 in sales tax alone, while the value of the instrument continues to diminish.
It is criminal
it's 5000 for 2024 (this years filing) and it's 2500 for next years filing (2025) and then it's 600 for 2026 taxes.... just a heads up
On a side note for Ebay. This is regarding a bass I was looking at in the last few weeks. I thought he was a bit on the high side. I made some inquiries about seeing it in person since I was relatively close.
The next thing I know, he's made two price increases. Huh? It wasn't moving even at the lower number. No indication on his description on why he added the additional to his price. I dunno.
The next thing I know, he's made two price increases. Huh? It wasn't moving even at the lower number. No indication on his description on why he added the additional to his price. I dunno.
also pre had no tax at the time which was a huge game changer. Taxation on used items just isn't right imo...
Reverb tells us straight out the net proceeds from a sale after basic fees is 91.5% of the selling price. Or selling price plus shipping since they collect their fees even on that. If you ship with Reverb protection subtract another 3%-4% since that varies with the cost of the item.
Altogether figure a net of 87.5%-88.5% of selling price plus shipping. IMHO Reverb's fees have gotten out of hand. I seldom use them any longer because it's nearly impossible to compete with the retail sellers there whose costs for shipping are far less and they have far less into an item than a private seller.
Ebay fees are a little less leaving the seller around 93%-94% after fees.
Altogether figure a net of 87.5%-88.5% of selling price plus shipping. IMHO Reverb's fees have gotten out of hand. I seldom use them any longer because it's nearly impossible to compete with the retail sellers there whose costs for shipping are far less and they have far less into an item than a private seller.
Ebay fees are a little less leaving the seller around 93%-94% after fees.
I get so tired of people urging everyone to "sell for cash locally." I live in a big city and can't attract local buyers for gear to save my life. Even with nice gear in great condition at fair prices. I can't imagine how hard it is to sell locally if you live in a small town.
I'm fine with paying Reverb fees if it gets the damn thing sold.
I'm fine with paying Reverb fees if it gets the damn thing sold.
Yup, you're not wrong about that. Selling locally take far more patience. It's tough to put an exact reason on it when the buyer is typically saving enough money (no tax/no shipping) to justify jumping in their car and going to look at something they want and they get to evaluate it in person to avoid poor online descriptions.
The only reason that seems to fit is that many of today's buyers are so used to the far more anonymous ways of buying online vs in person their willing to take some risks they don't take buying locally and possibly paying more to do it. Maybe they feel it's easier to haggle over price that way as well.
Conversely I've spent most of my life buying and selling in person so it's normally what I choose to do. Using Reverb is now more of a last resort when all else has failed, I just want something gone, and I'm willing to put up with the inconvenience of boxing it up for shipping and working harder for less money.
Agreed. I always list locally to sell in person, but between the lack of interest and the tire kickers/flakes/lowballers, I'd rather sell online. They click buy, I get paid, then I ship it. Sure, I've had a couple transactions go bad, but out of hundreds, the percentage is extremely low.
I think what sticks in my craw a little is seeing how big the spread is between what a buyer pays and what the seller nets. Even with just sales tax added it can be as much as 20%. They pay more and I net less. Knowing I can make that go away entirely with a local sale sticks in my "old school" head.
I get that it can severely limit my market but I have seldom failed to sell locally whenever I've been patient enough to let buyers come to me. And by now I've become accustomed to all of the annoyances involved with local listings. I've developed ways of dealing with those too.
Sweetwater's Gear Exchange charges 7.5% if you want a payout. If you take Sweetwater's Gift Card, there's no fee.
They also offer discount shipping similar to Reverb.
Smaller audience than Reverb and EBAY, but you keep more of your money.
As mentioned above, local / Craigslist works too. But you need to be patient and you'll also need to be aware of scammers.
Selling on TB is great because you keep the gear within the community. But shipping is a little more (Haven't tried Pirate Ship to get a shipping discount yet).
TB local would be the best for both parties.
They also offer discount shipping similar to Reverb.
Smaller audience than Reverb and EBAY, but you keep more of your money.
As mentioned above, local / Craigslist works too. But you need to be patient and you'll also need to be aware of scammers.
Selling on TB is great because you keep the gear within the community. But shipping is a little more (Haven't tried Pirate Ship to get a shipping discount yet).
TB local would be the best for both parties.
