Once you start selling on EBAY, the next step is making sure you get paid. There are many different ways to arrange this, plus also some important things you should know.
Remember, Not All Prices Are In Your Currency
If you selling or buying items internationally then you will most often see prices in US dollars. But also you see other currencies, such as Australian Dollars. So make sure you know how much you are paying, because £20 is very different to $20 us dollars or $20 Australian dollars. If you get it wrong you will definately be out of pocket.
When The Buyer Is Located Abroad
Be careful when receiving foreign funds. Alwavs insist that they pay by paypal, credit card or send an international money order. Remember to pick up some customs forms from the post office in advance to save yourself some time.
Set Up A Paypal Account
To be successful on EBAY you will need a Paypal account. This is a secure to get paid and also to amke payments on EBAY. EBAY users trust paypal. If you don’t have an Paypal account you will lose loads of sales. It takes a few days to set up a Paypal account, but once you are up and running – you will realise just how important a Paypal account is.
Setting up a Paypal account is FREE – click here to find out how to set a Paypal account now.
When To Accept Only Postal / Money Orders
Postal or international money orders are cash in hand. Cheques can take up to a week to clear so you don’t know if it’s a bad cheque or not. Don’t send valuable merchandise until a week after receiving personal cheque.Make this known in your item description. If you are uncomfortable with cheque and wish to only accept postal orders, state this in the item description as well. Be wary with your valuable items.
When To Ask For Postal / Money Orders
A good policy is to say you will accept personal cheques only from bidders with a +10 positive feedback. Accept only postal / money orders by mail from buyers with questionable feedback and state this in your policy as well.
The Taxman Cometh
Did you know that EBAY income is taxable? It certainly is. Keep good records and you’ll be rewarded at tax time. Don’t keep good records and you’ll be penalized. The tax advantages to having a small business are many.
Consult a local accountant or the Small Business Advice service on tax liabilities and credits. Rules differ from location to location. Your tax filing records should allow you to identify your sources of income and keep track of business expenses. It’s that simple.
As a small business owner or sole proprietor uses what is called a cash basis bookkeeping system. This simply means income is recorded when it is received, and expenses are reported when they are actually paid. Many sole proprietors and businesses with no inventory use the cash method. From a tax standpoint, it is advantageous for a new business to use the cash method of accounting. That way, recording income can be put off until the next tax year, while expenses are counted right away. Also remember licensing issues.
The laws and regulations vary from location to location. Some states or countries require licenses to sell and some do not.
