Taxes is an issue when running an Auction Business. But is there a grey line when it comes to declaring it?
It's really within reason if you're going to do a huge amount of it, a small amount is negligible.
Some people want to have a small business for write-offs, you might want to consider taking it to the next level and be able to write off some of your expenses like your computer, office space, supplies, etc.
Each state and each province has their own amount of sales you can do without declaring, & charging taxes. Check with your state to see what amount you have to do before you start taking taxes.
The BC goverment (where I live) gives you an allowance of $30,000 before you have to charge for sales tax, that's for someone who legally has a business.
There's definate advantages of having a business license, declaring your income and being able to have write-offs. That being said, legally you have to declare taxes if you're profiting from it.
Are You Holding Onto Too Much Product?
We all love to make money but after a while when you get too much product built up, you can start losing money. Why would we do that?
What happens is we get in a mindset on the value we feel our items are worth verses, what we can get for them. That's why when purchasing items it's important to keep in mind that you make money when you buy, Not - When you Sell.
But we also get into the territory where you feel you should get a certain price for something. And that's what we need to shake.... immediately.
You need to be watching your products and if something isn't pulling in the money anymore, you need to blow it out. Product on the shelves is not money in your pocket.... it's out of your pocket.
When we relate this to your eBay business, the same goes for what you have in your eBay store. Keep it fresh and alive. Have special offers, only for those who are buying an auction AND a store item.
Make it something that they want and give them a deal. Blowout product that you've had for too long. This will give you money up right away and gets you product you can actually do well with.
So, get out of the mind frame that to you need to make "X" amount from certain products, if they're not pulling it in, then "X" them out and move onto newer hotter products!
Your Auction Business & Taxes
Great Ideas for your Auction Site Business
Finding great items to sell can be difficult for some people. After all, your auction site business depends on great items that you can purchase very inexpensively and sell for a profit. If you are having difficulty finding items online for your auction business, here are some easy tips.
One of the best ways to find a great ideas is to check out the auction sites. Many people don’t realize that great ideas are on practically every page of Ebay. You can easily look at which products are selling, how much they sell for and the average price that they are sold at. Using Ebay is probably the easiest and quickest way to find great products that already have a thriving market.
You can also check out auction site forums. Here many people talk about great products that are hot. There are even auction analysis companies that analyze millions of pieces of data to come up with great items for their customers to sell.
There are many overseas manufacturers and distributors that would love to sell their items to you for a great price, which can be quickly converted into profit. Many of these overseas manufacturers are usually located on large marketplace websites which are easy to find. So if you are looking for great items to sell on auction sites, follow the above tips.
Automate Your Auction Site Business
Looking to grow your Auction site business? Many people that would like to sell more than a few items on their auction site find it hard to expand without the help of automation. Here are some great ways to automate your auction site business in order to grow.
There are three major ways to automate your auction site business, listing software, payment processing software and shipping software. Combining these three types of software can create an excellent and efficient online auction business. Listing software helps the merchant with the tedious job of listing a dozen items or a thousand items each day. You can choose the date, time and other important values for each item that you list. Listing software can cut the time it takes listing exponentially.
Payment processing software helps walk your customers through payments of your items being sold. The payment processing software contacts your customers buy email, tells them how to pay for the item and then delivers payment information to your shipping software that can create easy shipping labels and helps the merchant control inventory and keep shipping costs at bay. So if you would like to grow your auction site business, check out these great software solutions. With the proper auction software, your business can grow immensely.
More informations are available at http://www.auctions-00.com and http://www.sales-00.info
Finding inventory for a Wahm auction business
If you are interested in becoming an auction Wahm, you might be curious about where to get items to sell on eBay or one of the other popular online auction sites. Actually, there are a wide variety of choices for your auction inventory. Each has different benefits and disadvantages. However, with so many options it is easy to find a method that works well for you and that can help you start a successful Wahm business.
The first, and most simple, method of finding things to sell in online auctions is searching the garage sales in your local area. Many people are not comfortable with selling online, or they don’t want to take the time to do it. You may find a lot of interesting and valuable treasures that can be sold for a nice profit. The benefit of this method is that your inventory can usually be purchased very cheaply. Try going to yard sales as they are ending and see if you can get a bulk deal to buy whatever the person has left for a flat fee. Sometimes there will be items that will double or even triple your initial investment. You also have the benefit of being able to shop locally. You won’t have to travel far to get the items that you need. Another similar option is to look for estate sales and auctions in your area.
On the downside, when you purchase inventory from yard sales, you really have to know what you are looking for. Sometimes this method works better if you are focusing on selling a specific category of items, like pottery or children’s toys. If you have a category of items that you are familiar with, you’ll know how much you can afford to spend. You will also be able to spot deals when you see them. The other downside is that when you purchase items, you need somewhere in your home to store them before you sell them. If you buy a lot of items and have to sort through them, your garage and spare room will fill up in no time.
Some people prefer to keep the inventory out of their homes and work with a drop shipper. Drop shipping companies have items that you can sell on auctions. You list the items on the auction site, and then once the auction is complete, you arrange shipment with the drop ship company. You never have to have the product in your home, and don’t have to worry about going to the post office a few times a week. As a Wahm, the convenience of working with a drop shipping company can be a huge benefit. However, the profit margins of having the company do the shipping can be very small when compared to some of your other options.
When you obtain a business license you can order wholesale products from a company. Light bulk wholesale is the best option for most Wahms. These wholesale packages include from several hundred to a thousand dollars worth of product. Light bulk wholesale can be delivered to your home and won’t require excessive amounts of storage space. Selling from a wholesale lot means that you are in charge of setting your prices and can have more profit than you would by drop shipping. You are also not at the mercy of a drop shipping company, who may deliver your items late and put your customer service at risk.
On the other hand, stocking your own inventory can be a bit overwhelming unless you are organized. You can easily get bogged down in getting the right items to the right buyers. You will also be responsible for going to the post office several times a week, and packaging the items yourself.
However, with a bit of preparation, the most successful auction site Wahms find that buying items in wholesale lots gives them the most control over their business and the best profit margins. If you are just getting started, try one of the other methods first and then work up to buying wholesale lots.