eBay is having a Sale!

25 Cent Auction Listing Sale - November 22nd - November 25th

*Who's eligible?
From November 22-26, 2010, sellers who list in the Auction-style format and have a 12-month detailed seller rating of 4.5 or higher on all criteria, based on their Seller Dashboard, will pay just a 25¢ insertion fee per item listed ("Promotion"). New sellers who don't yet have DSR ratings are also eligible. DSR rating criteria for this Promotion will be based on the previous 12 months. To see DSR ratings, sellers can go to their Seller Dashboard within My eBay. For more information on DSRs, click here. This Promotion applies to both eBay Stores subscribers and sellers who do not have an eBay Store subscription.

When is it?
This Promotion starts on Monday, November 22, 2010, at 00:00:01 PT (12:00 AM plus one second), and will end on Friday, November 26, 2010, at 23:59:59 PT (11:59 PM plus 59 seconds) for listings on www.ebay.com. For listings on www.ebay.ca, the Promotion will begin at 12:00 AM plus one second, ET, on Monday, November 22, 2010, and end on Friday, November 26, 2010, at 11:59 PM plus 59 seconds, ET, (the "Promotion Period").

What are the fees?
During the Promotion Period, insertion fees for listings in the Auction-style format will be 25¢ per item listed on the U.S. site www.ebay.com. eBay Motors www.eBayMotors.com (Parts and Accessories only), and eBay Canada www.ebay.ca, as reflected in the fee table below. Listings created prior to November 22, 2010, which are scheduled to start during the Promotion Period, will be eligible to receive the Promotional Rate.

Please note: For sellers listing with any tool other than the latest version of the Sell Your Item form (SYI 3.0), the Promotional Rate will not be shown during the listing process. Instead, the discount will be reflected in the "View Account Status" section in My eBay, as well as in your next invoice.

Fees

Starting or Reserve Price	Auction-style Insertion Fee	Promotional Rate for Insertion Fee
$0.01 - $0.99	$0.10	$0.10
$1.00 - $9.99	$0.25	$0.25
$10.00 - $24.99	$0.50	$0.25
$25.00 - $49.99	$0.75	$0.25
$50.00 - $199.99	$1.00	$0.25
$200.00 - or more	$2.00	$0.25
Note: Optional feature fees, listing upgrade fees (e.g., Subtitle, Gallery Plus), and Final Value Fees, still apply.

How does this special Promotion affect the current "100 Free listings offer?"
Qualified sellers who do not have an eBay Store will receive the 25 cents per item rate under this Promotion on any eligible listings in excess of the 100 Auction -style listings per month for which they pay no Insertion Fees under the other, current Seller Special Promotion. Terms apply to that other, current Seller Special Promotion.

What is excluded?
This Promotion does not apply to the following: Fixed Price listings, eBay Motors Passenger Vehicles, Motorcycles, Boats, Power Sports, Other Vehicles, Motors Local Market, Professional Services, Real Estate, Classified Ad listings. The following business and industrial categories are excluded from the Promotion: Tractors & Farm Machinery (91952), Antique Tractors & Equipment (45009), Heavy Equipment (25249), Concession Trailers & Carts (67145), Imaging & Aesthetics Equipment (92036), Forklifts & Other Lifts (97185), Manufacturing Equipment (92080), Metalworking Equipment (92082), and Commercial Printing Presses (26247).

The Promotional Rate does not apply to listings with a start date prior to November 22, 2010—including those listings revised during the Promotion Period. Additionally, the Promotional Rate will not apply to listings scheduled to start after the Promotion Period.

How do I get the Promotional Rate?
You will automatically receive the Promotional Rate when you list Auction-style items through Sell Your Item Form, eBay Seller Tools, and most third-party tools.

Let's Discuss the New 2011 Tax Laws!

While this will not pertain to all of you, there are some of us that will have to start keeping track of figures in 2011. While we have always filed taxes on our business I know there are some that have not. Take this as a reminder and a warning if you will. Here is the link for this new regulation on PayPal. I will also cover it all here...

Starting in 2011, all U.S. payment providers including PayPal will be required by the IRS to report sales information about certain merchants to the IRS. We want to help you understand these changes.

•   Applies to merchants receiving over $20,000 in gross sales volume AND 200 payments or more
•   Applies only for sales beginning on January 1, 2011

What Is IRS 6050W?

Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:

•   Receive more than $20,000 in gross payment volume in a single year, AND
•   Receive 200 or more payments in a single year.

The IRS changes will apply to all payment providers, including PayPal. They will take effect on January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal merchants to understand and comply with the new requirements.
If you meet the stated thresholds, you will be required to verify your identity by adding a SSN/TIN/EIN to your existing account. If you are currently using a Personal or Premier account, you will be required to upgrade to a Business account.

When Do the IRS Changes Go into Effect?

IRS 6050W covers all transactions in the tax year 2011 and each tax year that follows. Beginning in 2012, qualifying merchants will receive a 1099-K Form either electronically or by mail. Transactions occurring prior to 2011 will not be affected by this legislation.

How Will I Know if IRS 6050W Impacts Me?

If a merchant meets both thresholds by receiving over $20,000 in gross payment volume AND 200 or more payments in a calendar year, PayPal will send Form 1099-K electronically or by mail for the 2011 tax year. This document will be made available in January 2012.

What does PayPal need from a Merchant as a result of the IRS changes?

Starting in 2010, PayPal will be asking impacted merchants to update their account by adding their SSN/TIN/EIN to their existing account(s). This information will only be requested from merchants that are potentially impacted by these requirements. If you are required to add this info, we will notify you via email and include an alert in your Account Overview.

How Do I Read a 1099?

PayPal is working with its merchants to help them understand the new requirements. Please refer to the links section on this site for more info on the process and forms. Also keep an eye out for upcoming information updates.

Will I Be Affected by the 2011 Tax Changes if I Only Meet One of the Thresholds?

No. A merchant has to pass BOTH thresholds ($20,000 in gross sales volume and 200 transactions) in 2011 to qualify for the new requirements. A business receiving $10,000 in payments per year would not be affected by the new requirements.

Will PayPal Help Me with My Tax Return?

While we're committed to helping our customers understand the 2011 tax changes, PayPal is not qualified to give you specific tax guidance. Please contact a tax professional.

What can I expect from PayPal?

This is an important legislative change for online sellers, so we want to provide clear and helpful information. We'll update this site frequently with more FAQs and resource links to help you make sense of IRS 6050W.

Are non-profit organizations affected by the new IRS Tax Law 6050W?

Non-profits are treated the same as for-profits. Non-profits will be required to submit their SSN/TIN/EIN as well. Non-profit merchants will need to work with their tax professional to determine how they will need to file their taxes going forward, if they aren’t already.

Are personal payment transactions received counted in the total that will be reported to the IRS?

Yes. All payments received by an account will be used when calculating the total payment volume received.

How is the $20,000 calculated? Will it be calculated based on net or gross transaction earnings?

The $20,000 will be calculated by looking at a merchant’s gross sales volume.

Who is the Business Contact Name?

The Business Contact Name is the individual’s name that was provided to the IRS when applying for your TIN or EIN. This is the name that should be listed on your account when verifying your identity. If the name listed on your account is not correct, please upload or fax your documents by following the links on your account.

What is a SSN/TIN/EIN?

SSN = Social Security Number
TIN = Tax Identification Number
EIN – Employee Identification Number
Depending on your business type, all three of these numbers can be used to verify your identity with the IRS.

Will I have to upgrade to a business account? 

If you meet the thresholds outlined by the IRS and are currently using a Personal or Premier account, we ask that you upgrade to a Business account. The upgrade process is quick, easy and free and provides you with more access to helpful PayPal features and products.

What happens if I don’t verify my identity?

If you do not verify your identity, a restriction will be placed on your account until you do so. You will be unable to send, receive or withdraw funds from your account until you verify your identity.

If I have multiple accounts that, when combined, meet the thresholds, but individually they don’t, will I still qualify?

Yes. PayPal and all other payment processors will report sales and transaction volume to the IRS by SSN/TIN/EIN. 

For example, if you have two accounts tied to the same SSN/TIN/EIN with the following payment levels:

•   Account A - $18,000 in sales and 180 transactions
•   Account B - $2,000 in sales and 20 transactions

Your accounts will qualify under the new regulation.

 So, take the time now to get your ducks in a row so there are no surprises at the beginning of the year. There are plenty of programs that you can use to track your sales. I have also found 17 copies of Microsoft Office Accounting Express 2007 that I can send out to those that need them. Just send me an email at ValuesForLess and I will get a copy out to you. Make sure to include your shipping address so it arrives safely. 

I also found 10 PayPal Lock Keys if anyone does not have one. Same thing goes, send me an email at ValuesForLess letting me know which you want and I will get it out to you.

Until next time, Happy Selling

Let's Discuss Shipping for the Holidays!

It's that time of the year again...when we need to prepare all of our goodies and ship packages to far away lands for the Christmas Rush. Even us online sellers need to keep the Post Office Schedule in our notes. To make it a bit easier this time of the year, Let's Discuss Shipping for the Holidays!

This is the time of the year that Mail Fraud and Mail Theft are high so remember to protect yourself. If you are an online seller and accept payment through PayPal, remember that all of your packages should have a minimum of Delivery Confirmation on them. Any order that is over $250.00, you need to add Signature Confirmation to be covered under the PayPal Seller Protection Program. Remember, no matter what, it is your responsibility to get your buyer's package to them!

If you want your package to arrive in time for Christmas, here is the information directly from the USPS website You can click on the link to open it in another window or just keep reading...

2010 Holiday Shipping Cut Off Dates

Want it delivered by December 25? Find shipping and mailing deadlines for your military and international cards and packages here.

Domestic Mail

Domestic Mail Class/Product	Cut Off Date
First Class Mail	Dec 20
Priority Mail	Dec 21
Express Mail*	Dec 22
Parcel Post	Dec 15
DBMC Drop Ship	Dec 18
DDU Drop Ship	Dec 22

* SOME EXPRESS MAIL DESTINATIONS MAY HAVE EXTENDED SERVICE COMMITMENTS

Military Mail

Military Mail Addressed To	Express Mail® Military Service (EMMS)1/	First-Class Mail® Letters and Cards	Priority Mail®	Parcel Airlift Mail (PAL) 2/	Space Available Mail (SAM)3/	Parcel Post®
APO/FPO AE ZIPs 090-092	Dec 18	Dec 10	Dec 10	Dec 3	Nov 26	Nov 12
APO/FPO AE ZIP 093	N/A	Dec 4	Dec 4	Dec 1	Nov 20	Nov 12
APO/FPO AE ZIPs 094-098	Dec 18	Dec 10	Dec 10	Dec 3	Nov 26	Nov 12
APO/FPO AA ZIP 340	Dec 18	Dec 10	Dec 10	Dec 3	Nov 26	Nov 12
APO/FPO AP ZIPs 962-966	Dec 18	Dec 10	Dec 10	Dec 3	Nov 26	Nov 12

^1/ EMMS: AVAILABLE TO SELECTED MILITARY POST OFFICES. CHECK WITH YOUR LOCAL POST OFFICE TO DETERMINE IF THIS SERVICE IS AVAILABLE TO AN APO/FPO ADDRESS.

^2/ PAL: A SERVICE THAT PROVIDES AIR TRANSPORTATION FOR PARCELS ON A SPACE-AVAILABLE BASIS. IT IS AVAILABLE FOR PARCEL POST ITEMS NOT EXCEEDING 30 POUNDS IN WEIGHT OR 60 INCHES IN LENGTH AND GIRTH COMBINED. THE APPLICABLE PAL FEE MUST BE PAID IN ADDITION TO THE REGULAR SURFACE RATE OF POSTAGE FOR EACH ADDRESSED PIECE SENT BY PAL SERVICE.

^3/ SAM: PARCELS ARE PAID AT PARCEL POST POSTAGE RATE OF POSTAGE WITH MAXIMUM WEIGHT AND SIZE LIMITS OF 15 POUNDS AND 60 INCHES IN LENGTH AND GIRTH COMBINED. SAM PARCELS ARE FIRST TRANSPORTED DOMESTICALLY BY SURFACE AND THEN TO OVERSEAS DESTINATIONS BY AIR ON A SPACE-AVAILABLE BASIS.

International Mail

International Mail Addressed To	Global Express Guaranteed® (GXG)*	Express Mail® International (EMS)	Priority Mail® International (PMI)	First-Class Mail®
Africa	Dec 17	Dec 11	Dec 3	Dec 3
Asia/Pacific Rim	Dec 17	Dec 16	Dec 10	Dec 10
Australia/New Zealand	Dec 17	Dec 16	Dec 10	Dec 10
Canada	Dec 21	Dec 17	Dec 13	Dec 10
Caribbean	Dec 20	Dec 16	Dec 13	Dec 10
Central & South America	Dec 20	Dec 11	Dec 3	Dec 3
Mexico	Dec 21	Dec 16	Dec 10	Dec 10
Europe	Dec 20	Dec 16	Dec 13	Dec 10
Middle East	Dec 17	Dec 16	Dec 13	Dec 10

*GXG: CUTOFF DATE DOES NOT TAKE INTO ACCOUNT TIME NEEDED FOR CUSTOMS CLEARANCE. EXTRA TRANSIT TIME SHOULD BE ALLOCATED.

 

Remember, a Timely Delivery means a Happy Buyer!

Until Next time, Happy Selling!

Let's Discuss "FREE" Shipping

Let’s Talk about “Free Shipping”

As you already know, shipping is not “Free”. Not once when I walk into the post office, has the agent been willing to take and mail my packages without charging me. You know that as well as I knows that. HOWEVER, there is a perceived notion among Online Shoppers that they do not want to pay for an item to be delivered to them. They have the philosophy of…When I go to the mall, I do not pay to pick-up the item. Well. In reality, you do. You buy gas, pay a payment on your vehicle, pay for insurance, well, you get the idea.

The average online shopper is looking for the best deal that is available and to be a successful online seller, you need to realize this.

Now, as a seller, you probably are thinking like I did when I started online sales. I have to pay for shipping and so does my buyer. I did a study over a 90-day period and found that if I listed identical items, one with shipping being charged to the buyer and one with free shipping, the Free Shipping listing sold nearly 10x more. Not, keep in mind that when I did this, the final price, was identical.

Item One: Acme Wonder Lure Spinner – Price: $3.95 – Shipping: $1.32 = Total of $5.27

Item Two: Acme Wonder Lure Spinner – Price: $5.29 – Shipping: FREE = Total $5.29

Now, as you can see in the above item, I actually charged $0.02 more but offered free shipping. When purchased, the item with Free Shipping sold 10 to 1 without.

With this formula, shipping is STILL being charged to your buyer but they do not see that charge so they conceive that it is free.

With the new algorithm at eBay, using the Free Shipping option is very much so the way to go. Buyers can now sort items by Free Shipping and with the All Mighty DSR option; Free Shipping receives an automatic DSR Rating of 5 in that portion. So, long story short, your buyer is still paying the shipping, you are still getting the money for shipping, it is just the way that it is delivered ;0)

So What to I add to my price for Free Shipping???

On all of our User Id’s, we add the shipping to Zone 8 per the USPS chart to make sure that we still make a profit on our items. What does this mean you ask?

Mootsie Tootsie Shoes – Sale Price of $22.95

These shoes weigh completely packaged at 1 pound, 14 oz. So the shipping charges depending on the location would range from $5.00 - $9.55. To keep the profit that I need to clear on this item, I would add in shipping of $9.55 to my item. Now notice that I add the highest shipping fee so I would list these shoes at $34.95 to cover the highest possible shipping via USPS plus additional eBay/PayPal Fees. You can also take into account what UPS charges and your profit margin can go up.

Let’s Add in eBay and PayPal fees to these figures.

This is the figures with the BUYER paying for shipping outside the price of the item

No Store

Sale Price:                    $22.95

Shipping:                      $  9.55

Total Paid by Buyer:     $32.50
Shipping Cost:              $ 9.55

eBay Fees                    $  3.25

PayPal Fees:                 $  1.24

Total Received:             $18.46

Basic Store

Sale Price:                    $22.95

Shipping:                      $  9.55

Total Paid by Buyer:     $32.50
Shipping Cost:              $ 9.55

eBay Fees                    $  2.95

PayPal Fees:                 $  1.24

Total Received:             $18.76

Premium Store

Sale Price:                    $22.95

Shipping:                      $  9.55

Total Paid by Buyer:     $32.50
Shipping Cost:              $ 9.55

eBay Fees                    $  2.80

PayPal Fees:                 $  1.24

Total Received:             $18.91

Let’s do the same figures with the buyer receiving “FREE” shipping with the price of shipping being figured into the price of the item:

No Store

Sale Price:                    $34.95

Shipping:                      $  0.00

Total Paid by Buyer:     $34.95
Shipping Cost:              $ 9.55

eBay Fees                    $  4.69

PayPal Fees:                 $  1.31

Total Received:             $19.40

Basic Store

Sale Price:                    $34.95

Shipping:                      $  0.00

Total Paid by Buyer:     $34.95
Shipping Cost:              $ 9.55

eBay Fees                    $  4.39

PayPal Fees:                 $  1.31

Total Received:             $19.70

Premium Store

Sale Price:                    $34.95

Shipping:                      $  0.00

Total Paid by Buyer:     $34.95
Shipping Cost:              $ 9.55

eBay Fees                    $  4.24

PayPal Fees:                 $  1.31

Total Received:             $19.85

Now keep in mind, if your buyer lives in zones 1 – 7, your profit will be higher. So, as you can see from these figures, your profit CAN be higher when you figure in “FREE SHIPPING” for your buyer. Also remember to figure in any PowerSeller (5%) or Top Rated Seller (20%) discounts for a higher profit margin!

International Buyers

At this time, I would not recommend offering free shipping on International sales because the charges are all over the board. You can however, give your International Buyers, a discount on shipping to cover the shipping charges that you built into your prices. That is up to you and how you want to run your business!

Until Next Time, Happy Selling!