eBay Fall 2019 Seller Update Summary

Learn more about eBay’s Fall 2019 Seller Update! If you sell a lot on eBay, then you’ll want to keep up with all the changes happening with the marketplace.

We’ll provide a summary of the key points of the seller update.

Marketplace Updates

  • New Managed Payments features

New payments include Google Pay, PayPal, and PayPal Credit. That’s in addition to previously accepted payment methods.

  • Simpler refunds and more methods of refunds

Sellers can now issue a partial or full refund directly from Seller Hub or through the Refund API.

  • Order numbers to track transactions

Orders now have order numbers so that you can track the order from start to finish. This will allow sellers to better track transactions.

  • Multi-User Account Access

Sellers can now grant permissions to other users to access the account and perform certain actions.

Currently, user access is limited to two permissions: create and edit drafts and publish and revise listings.

If you’ve created user permissions in any software like QuickBooks or marketplace like Amazon, then you’ll be familiar with how this works.

Sellers must opt-in and use the new Seller Hub to grant permissions to other users. To grant permissions, go to My eBay > Summary > Account and Permissions. Invite the user and set the permission level.

You can always revoke the user access at any time.

  • Coming soon is the new Finances API
  • Coming soon is the ability to issue multiple partial refunds per order, up to the full amount

Growth Tools

  • Send more offers to buyers and negotiate with buyers through Seller Hub

You can now send offers to buyers who have items in their carts. Before, you could only send an offer to buyers who were watching the listing.

Sellers will now be able to negotiate with buyers instead of having the buyer accept or reject the offer outright.

  • Promote listings on mobile devices
  • Promote or manage listings on My eBay
  • Remove duplicated non-promoted and promoted listings

eBay will now remove duplicate listings in search results. That means either your promoted or non-promoted listing will show for buyers, not both.

  • Increased visibility for Promoted Listings in search results
  • Access Terapeak in Seller Hub

Inventory Optimization

  • Category changes

New category changes like renames, additions, and removals will go into effect. If your listing is in one of the affected categories, eBay will automatically move your listing to the new category.

Your selling fees may increase or decrease as a result of the change.

Here are the affected categories as of October 15, 2019:

  1. Business & Industrial
  2. Cameras & Photo
  3. Cell Phones & Accessories
  4. Clothing, Shoes, & Accessories
  5. Computers/Tablets & Networking
  6. Consumer Electronics
  7. Home & Garden
  8. Toys & Hobbies
  9. Video Games & Consoles

These category changes will go into effect January 28, 2020:

  1. Home & Garden
    1. Kids & Teens at Home
    2. Bath
    3. Yard, Garden & Outdoor Living
    4. Wholesale Lots
    5. Home Improvement
    6. Pet Supplies
    7. Baby
    8. Crafts
  • Item specifics to updates to improve your listings

Item specifics allow better targeting for buyers. These specifics can include brand, model, color, size and more. They’re also structured in order of importance based on data from buyers.

Item specifics are already required for some categories, and more will be required as updates are made. You should fill out the recommended item specifics too, as that will help increase your search visibility.

  • Simplified pricing for high volume vehicle sellers

Seller Protection & Policy Updates

  • Additional protections for top-rated sellers

Sellers who offer 30-day or longer returns are eligible for a shipping label credit up to $6 if buyers submit a false INAD claim, and they can deduct up to 50% from refunds for decreased value or damaged returns

  • Simplified eBay seller policies

eBay will help you with fix any issues with your listing or account to prevent disruption to your business.

  • Standardized and updated return policies

Updated return policies now include only: 30- and 60-day returns, free 30- and 60-day returns, and no returns.

Make sure you stay on top of these changes so that there’s no surprise or disruption to your business! Revise your return policies and confirm that your categories are correctly migrated over so that you’re not paying more in fees than you should.

Check that your listings have the item specifics added, especially the recommended specifics so that they are more visible in search results.

Check out these other articles on eBay.

Learn about eBay Fulfillment or Managed Delivery

eBay’s fulfillment service, called Managed Delivery, will be a huge benefit for many sellers. Like Fulfillment by Amazon (FBA), Managed Delivery will save sellers a lot of time from having to pick, pack and ship.

This means more time can be spent on other important aspects of the business, like sourcing. We’ll go over what we know about Managed Delivery in this article.

How does Managed Delivery work?

Unlike FBA, eBay will partner with other partners in order to provide fulfillment for sellers.

Partnering with other services allows eBay to expedite the rollout for Managed Delivery and keep costs down. But having different fulfillment partners can cause some inconsistencies for sellers.

Like FBA, sellers will send their inventory to the warehouse. When the item sells, the partner fulfills the order using eBay-branded packaging.

A list of partners is not available at this time, but sellers can expect that more information about these partners as the launch date nears. More fulfillment partners will be added as the service scales up.

What are the costs?

eBay hasn’t provided a preview of the fees at the time of this article, but sellers will be able to see what the fees are closer to launch date, which is expected to be sometime next year in 2020.

eBay claims that the pricing will be competitive, so it’s likely to be similar to Amazon’s FBA pricing.

What are the benefits to sellers?

Managed Delivery appears to be modeled after Amazon’s FBA service. In fact, if you currently use FBA, then the benefits of Managed Delivery will be familiar to you.

Here’s how sellers can expect to benefit:

  • Lower fulfillment costs for 1-, 2-, and 3-day delivery because of eBay’s rates
  • Same seller protections that Top Rated Sellers have
  • Remove neutral or negative feedback related to INAD, stock out, and INR so long as seller meets eBay’s performance metrics
    • Seller protections that include customer returns that are opened, used, or damaged with ability to offer up to 50% partial refund
    • Ability to report false INAD claims and receive credit for return shipping cost
  • Simplified and faster shipping
    • Warehouses located across the United States for faster delivery times and lower shipping costs
  • Increased listing visibility
  • Save on storage space
  • Save on labor from having to pack and ship individual orders
  • eBay-branded packaging

What are the benefits to customers?

Customers will also see some benefits from Managed Delivery.

In many ways, customers will have a much more consistent experience since eBay sellers can sometimes have poor packaging processes.

These benefits are:

  • Faster delivery times with tracking
  • More sellers offering free shipping
  • Quality packaging
  • Better customer support

Conclusion

eBay’s Managed Delivery service is a great way for sellers to reduce the labor related to storage and shipping. Combined with FBA, any extra costs associated with fulfillment can be offset by reducing warehouse space and labor.

But there are still some questions that aren’t addressed. For instance, FBA sellers know that mistakes happen on inbound shipping and receiving. Those mistakes can lead to lost or damaged inventory, and Amazon has a system in place for investigating and reimbursing sellers.

But with partners, who will be the one to reimburse sellers when inventory is inevitably damaged or lost at the warehouse? And how will sellers go about requesting reimbursements for mistakes?

Will fulfillment partners also be able to offer a la carte services that some sellers want? For instance, Amazon offers a label service, while other third-party fulfillment services offer packaging, inspection, and kitting for an extra fee.

Still, the ability to reduce time spent packing and shipping will be a benefit to many larger sellers even if they still have to prep inventory.

Read other articles on SellerZen related to eBay:

Sell on these online marketplaces that are eBay alternatives

Looking for eBay alternatives to sell your products or household goods?

Check out these marketplaces and see if they’re a better fit for your business, or list on these marketplaces to expand your audience and sell your stuff faster.

If you list an item on multiple marketplaces, remember to remove them once they sell or you’ll get a performance hit on your seller metrics.

One benefit of some of these marketplaces is they’ll allow you to connect to Amazon or eBay and import your items. This will save you time and allow you to expand your customer base without putting in that much more effort.

Check out the seller guides for more information.

Bonanza

SimilarWeb estimates the number of visitors to Bonanza at 5.54 million visitors in the previous 6 months, or a little under 1 million visitors per month.

The modern, clean layout, combined with marketing and media coverage means that Bonanza is becoming a recognized marketplace.

The site is growing, and as more sellers sign on and marketing increases, Bonanza looks to be a promising platform and competitor.

Bonanza’s fees start at 3.5% and go up to 30% depending on the type of service you want. Higher rates mean that your products will be advertised through Google.

One benefit of Bonanza is that direct referral links from your blog or social media will have 0 referral fees.

eBid

eBid’s visitors are split between the UK and the US. SimilarWeb estimates the number of visitors at 415,000 in the previous 6 months.

eBid boasts a gross listing value of over 8.7 billion dollars with over 4.2 million listings worldwide.

There’s a 3% fee to sell on eBid. A current lifetime SELLER+ subscription with additional benefits is on sale at $49.99, down from $99.98.

eCrater

SimilarWeb estimates 2.26 million visitors in the previous 6 months. That comes out to over 350,000 visitors per month.

Unlike other marketplaces, eCrater gives you your own free online store. While you’ll get a subdomain, it’s great for small sellers or sellers of handmade goods. As you grow, you may want to consider your own website.

Listings are free on eCrater, and there are no fees unless a purchase was made through eCrater’s marketplace. In cases of referrals, there’s a 2.9% fee.

That means direct links to products in your store will cost you nothing.

Facebook Marketplace

It’s free to list on Facebook Marketplace, but you may have to pay for third-party integrations for services you want, like setting up inventory.

Relatively new, Facebook Marketplace is becoming popular quickly because of the number of users who are on Facebook and the ease with which customers can communicate with sellers.

Facebook Marketplace also allows buyers to check out with shipping. So it’s not necessarily a local marketplace.

Many people use Facebook Messenger, and the ability to communicate with customers in real-time through social media can be a boon for businesses.

But that also means you may need to devote more people to customer service, as customers are more likely to chat with you through Messenger than through email.

Mercari

Most people may know Mercari as an app, but anyone can browse product offerings on any browser.

No traffic data is available on SimilarWeb since many customers interact with Mercari through the app.

Listings are free, and there’s a 10% fee if the item sells.

One unique aspect of Mercari is that buyers and sellers rate each other for the transaction. This helps keep the marketplace more honest, though that doesn’t mean there will be fewer scammers.

Other Marketplaces

These other marketplaces didn’t quite make the list since they specialize in specific categories of goods, but if you so happen to sell these products, then these marketplaces may be a better fit for you.

The more marketplaces you sell on, the broader the audience you’ll reach. But remember too that managing listings from various marketplaces can become tedious since you’ll have to add and remove them individually as products sell.

You’ll also risk running into the issue of selling more than what you have if you’re not careful. This can affect your seller performance metrics if you also sell the same products on Amazon or eBay.

That’s no problem for sellers who stock and sell manufactured goods, but for casual sellers or people selling household items they no longer want, the effort of managing multiple listings may not be worthwhile.

Every seller knows that diversification can help ease account suspensions. Amazon sellers are especially prone to suspensions, as one prolong suspension can easily take down the business.

So take the opportunity to explore other marketplaces and see if they’ll fit your business.

Like this article and want to read more? See the following related articles:

eBay Spring 2019 Seller Update Summary

Check out this summary for eBay’s Spring 2019 Seller Update! These updates begin in April and are gradually rolled out through the following months.

Learn about these new features and changes so that you can better prepare your business and not be caught off guard.

Marketplace Updates

  • Monthly renewals for Good ‘Til Cancelled listings
    • GTC listings are renewed once a month on the day the listing started (January 5, February 5, March 5…)
  • Easier relisting of canceled listings or buyer’s remorse returns with a preselected checkbox to relist these items
  • State sales tax exemption available for sellers
  • Improved order management with order numbers attached to transactions
  • Final Value Fee cap for Basic and Premium stores increases from $250 to $350, and no changes to Anchor or Enterprise stores
    • Additional Final Value Fees will increase from 4% to 5% for sellers not meeting performance expectations

Seller Protections

  • Improved seller protections with new measures to detect abusive buyers
    • Abusive buyer reporting tool for sellers
    • Feedback from abusive buyers will be removed and will not affect performance metrics
  • Better seller protections for sellers with good metrics this summer
  • Lower visibility for sellers who violate drop-shipping policy
  • Removal of negative feedback for sellers who have done their part and for issues beyond sellers’ control, like weather

Managed Payments

  • New features for Managed Payments including new payment options like Google Pay and PayPal
  • Partial refunds can be issued up to 100%

Growth Tools

  • Promoted Listings are now available to non-Store sellers
  • Best Offer and Offer to buyers improvements, including bulk edits

Inventory Optimization

  • Category and item-specific changes to listings
  • Listings should be in the “best fit” categories in order to improve search and visibility for buyers

Visit eBay’s Spring 2019 Seller Update for more complete information.

Read other eBay-related articles on SellerZen:

eBay Open Annual Seller Event from July 23-25, 2019

eBay Open starts this year on July 23-25, 2019. It runs from Tuesday through Thursday. This 3-day annual seller event gives eBay sellers the opportunity to speak with eBay representatives and learn about new tools and news.

Location and Cost

This conference is hosted at Mandalay Bay in Las Vegas, Nevada.

Early registration costs $350. You can also book a room at Mandalay Bay through eBay Open for $99.

Why attend?

This event gives sellers the opportunity to learn about upcoming eBay news, products, and programs. In previous years, eBay provided attendees with exclusive information about its Concierge and Managed Payments services.

CEO Devin Wenig and other executives spoke about improving selling on eBay during eBay Open 2018. Sellers will get to know what changes will happen with eBay.

Sellers can also network with other eBay sellers, category experts, and other representatives to learn about services and tools that they can apply to their businesses during the workshops.

Outline of Agenda

The agenda is likely to change as the date of the event nears. Keep updated by visiting the website for more information.

  • July 23
    • Registration in the afternoon
    • Expo Open
    • Welcome Registration
  • July 24
    • Breakfast/Lunch
    • Expo
    • Workshops
    • General Sessions
  • July 25
    • Breakfast/Lunch
    • Expo
    • Workshops
    • General Sessions
    • Closing Party

Want a better idea about the agenda? Take a look at the 2018 agenda below for the second day of the event:

  • eBay Open 2018 Day 2 (July 25, 2018)
    • 7:30 – 8:30am Breakfast
    • 8:30 – 9:15am Workshop
    • 9:30 – 10:15am Workshop
    • 10:15 – 10:30am Break
    • 10:30 – 12:00pm General Session
    • 12:00 – 1:00pm Lunch
    • 1:00 – 1:45pm Workshop
    • 2:00 – 2:45pm Workshop
    • 2:45 – 3:15pm Break
    • 3:15 – 4:00pm Workshop
    • 4:00 – 4:15pm Break
    • 4:15 – 5:15pm General Session and SHINE Awards
    • 5:15 – 6:30pm Happy Hour

New sellers will benefit from networking with other veteran sellers and face-to-face interaction with eBay experts. Getting answers, tips, and advice from other eBay sellers and eBay representatives may save new sellers countless hours from having to wade through forums with outdated posts or speculation.

Veteran sellers may benefit not only from expanding their network but also from new insight and exclusive eBay announcements made during eBay Open.

 

 

eBay Prohibits Drop Shipping from Other Marketplaces

eBay changed its drop shipping policy to no longer allow drop shipping from another marketplace.

Drop shipping from wholesale suppliers is still allowed, but eBay has this to say about drop shipping from other marketplaces:

However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay.

Who does this change affect?

Sellers who drop ship from marketplaces with long shipping times will have to adjust to the new policy.

Less clear is how drop shippers who use domestic marketplaces will be affected, especially if they deliver within the stated timeframe and provide good customer service.

Some drop shippers use software to identify arbitrage opportunities between eBay and Amazon (or any other retailer or marketplace).

While Amazon is a common marketplace used by drop shippers to fulfill orders on eBay, it’s by no means the only one.

Walmart, Best Buy, Etsy, and other marketplaces where the software identified a profitable margin could just as easily be used.

Customer satisfaction should be the seller’s priority, and eBay’s Top Takeaway from the policy page reinforces this:

If you use drop shipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing, and the buyer’s overall satisfaction with their purchase.

What are the consequences for sellers who ignore the policy?

eBay hasn’t published how they will enforce this new policy. But the consequences are stated. If you’re a seller who ignores this policy, then eBay may:

  • remove listings from search
  • display listings lower on search results
  • remove the listing from the site
  • penalize the account by removing features, top-rated status, or discounts

How does this policy affect customers?

Ultimately, this policy change will benefit customers in that drop shippers who misrepresented delivery dates and ship from locations will be phased out from search results or from eBay altogether.

One drawback is that costs may go up for certain products. But customers can still purchase directly from Aliexpress or any number of similar marketplaces.

Conclusion

Today, customers are trained by Amazon to expect fast shipping and excellent customer service.

Drop shippers don’t have any control over fulfillment, so item condition, packing, and shipping issues are often beyond their control.

Drop shipping can still be profitable if you do it correctly. Indeed, many drop shippers are successful. But they didn’t become successful by ignoring policies, offering poor customer service, and risking account suspension.

Check out these other articles related to eBay:

What is eBay Managed Payments?

What is eBay Managed Payments? Essentially, eBay, like many other major marketplaces, will handle its own payments. Currently, PayPal handles eBay payments.

eBay is already testing its Managed Payment system. Some sellers already have opted into testing eBay Managed Payments, and more will be transitioned into the system this year. By 2021, eBay expects most of its sellers to be on Managed Payments.

We’ll give you a concise summary of what changes to expect before the transition goes into full effect. Note that the service is evolving, so you’ll want to visit the website for up-to-date information.

How do I join eBay Managed Payments?

Currently, only sellers who were invited can participate in eBay Managed Payments. If you have multiple seller accounts, you can request that eBay add the other seller accounts to the new payment system. You’ll want to be aware of some of the current limitations before you decide to join.

What are the advantages for sellers?

When making the transition to eBay Managed Payments, sellers will need to provide a bank account so that eBay can deposit sales proceeds. Sellers on other platforms like Etsy and Amazon will find this process familiar.

Currently, customers will send you money via PayPal and eBay will bill you monthly. You’ll then request a disbursement from PayPal, less any funds held in reserve.

Here are the major changes sellers can expect:

  • Streamlined management of selling and payments
  • More transparent invoicing so that you see all your fees in one place, including payment process fees
  • Daily payouts
  • New payment methods like Apple Pay
  • Streamlined seller protection with claims and chargebacks handled through eBay
  • Lower processing fees, currently a flat 2.7% instead of 2.9% + 30¢ with PayPal

What are the disadvantages for sellers?

While eBay Managed Payments have many advantages, there are still some disadvantages to using the new payment system. However, these disadvantages are likely to be resolved as the platform matures.

  • Customers can’t pay with PayPal until it’s integrated, expected sometime mid-2019
  • eBay Managed Payments does not support Global Shipping Program (GSP)
  • USPS shipping labels are still paid through PayPal
  • No listings on eBay International Services
  • Does not support eBay for Charity

What changes can buyers expect?

For the most part, buyers will experience a little confusion since customers expect to pay with PayPal.

eBay Managed Payments will simplify the checkout process so that there’s no PayPal login required. They’ll simply enter their credit card information as they would with any other online purchase. They’ll also have the option to save payment method.

What are some other changes buyers and sellers can expect?

This transition over to eBay Managed Payments will change the claims process for buyers and sellers. For sellers, managing claims will be easier since they’ll only have to deal with eBay instead of both eBay and PayPal.

Previously, sellers faced the very real situation wherein they’d win a fraudulent claim on eBay but lose that same claim on PayPal. PayPal would then refund the buyer. Or sellers would be bounced back and forth between eBay and PayPal to resolve issues.

With eBay handling payments, sellers can expect a more streamlined process and more consistency with customer claims. Many of the disadvantages are likely to be resolved as eBay continues to work on its own payment system. Be sure to check out eBay for the latest updates.

Want to keep up with other eBay news? Check out the links below:

50-State List of Remote Seller Sales Tax and Marketplace Facilitator Tax Rules

Own an ecommerce business and want to see a consolidated list of remote seller sales tax requirements? Look no further!

Many states have passed marketplace tax laws or marketplace facilitator tax laws that require marketplaces like Amazon and eBay to collect sales tax or provide reports on applicable sales.

A lot of marketplaces now collect and remit sales tax on behalf of their sellers. That’s good news for sellers because it reduces the cost of compliance, but many questions and uncertainties still remain. But what about those states that don’t require marketplaces to collect?

Amazon’s Marketplace Tax Page

eBay’s Sales Tax Page

We’ll provide the dates and marketplace facilitator and/or remote seller sales tax requirements as stated on the tax agency’s websites so that you can see them all in one place.

States may have different requirements regarding collection, remittance, and reporting, so you’ll want to visit the tax agency’s website for current information.

We’ll do our best to provide accurate information, but many states have pending legislation or litigation that may affect their laws. Visit the state’s tax agency for updates.

You should talk to a tax professional about your business. 

Alabama

Called the Simplified Sellers Use Tax, Alabama will require marketplace facilitators with sales to Alabama residents in excess of $250,000 to collect sales tax beginning on January 1, 2019. From the Alabama Department of Revenue website:

Remote sellers with annual Alabama sales in excess of the rule’s $250,000 small seller exception should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018.

Alaska

Alaska has no state sales tax, but cities may still charge sales tax. Visit the Department of Revenue’s website for more information.

Arizona

Arizona has a transaction privilege tax (TPT) instead of a sales tax. Individuals are required to pay a use tax. Visit the Department of Revenue’s website for more information.

Arkansas

Read more about remote sellers on the Department of Finance and Administration’s website.

California

Publication 109 on Internet Sales gives sellers more information regarding marketplace sellers. Publication 77 details whether or not you’re required to collect sales tax if you’re an out-of-state seller and are engaged in business in California.

Post-Wayfair rule from the Department of Tax and Fee Administration for remote sellers beginning April 1, 2019:

  • The retailer’s sales into California exceed $100,000, or
  • The retailer made sales into California in two hundred (200) or more separate transactions.

Colorado

Colorado’s Department of Revenue has this to say about out-of-state retailers and economic nexus. The start date is December 1, 2018.

Any out-of-state retailer with substantial nexus is required to register for a sales tax license and to collect and remit Colorado sales taxes.  Any out-of-state retailer that does not have substantial nexus is not required to register for a sales tax license and is not required to collect and remit sales tax.  Retailers without substantial nexus are those who have: 1) no physical presence in the State of Colorado; 2) less than $100,000 in gross sales into the State of Colorado in the current or previous calendar year; and 3) fewer than 200 transactions into the State of Colorado in the current or previous calendar year.

Connecticut

Connecticut Department of Revenue Services Special Notice 2018(5) has more information regarding the collection of sales tax. See all 2018 Special Notices.

Both Marketplace facilitators and remote sellers are required to collect sales tax effective December 1, 2018.

The threshold for out-of-state sellers is:

1. Their Connecticut sales exceed a threshold of 200 transactions during the preceding twelvemonth period (ending September 30) (previously, the threshold was 100 sales);

and

2. Their gross receipts are $250,000 or more during that twelve-month period.

Delaware

Delaware does not have a state sales tax, but it does have a gross receipts tax. Learn more from the Delaware Division of Revenue Internet Sales page.

Florida

Visit Florida’s Department of Revenue site for information regarding out-of-state businesses. Florida has yet to release any changes regarding economic nexus, but that may change in 2019.

Georgia

George has passed House Bill 61 requiring remote sellers to collect and remit or report sales tax. Effective January 1, 2019:

Obtained gross revenue, in an amount exceeding $250,000.00 in the previous or current calendar year, from retail sales of tangible personal property to be delivered electronically or physically to a location within this state to be used, consumed, distributed, or stored for use or consumption in this state, OR

Conducted 200 or more separate retail sales of tangible personal property in the previous or current calendar year to be delivered electronically or physically to a location within this state to be used, consumed, distributed, or stored for use or consumption in this state.

Hawaii

Hawaii has a general excise tax. Tax announcement 2018-10 provides more details about remote sellers and excise tax collection, remittance, and reporting. Direct link to 2018-10 PDF. Effective date is July 1, 2018.

From the PDF:

(1) Taxpayer has a physical presence in Hawaii;

(2) In the current or preceding calendar year, taxpayer has gross income or gross proceeds of $100,000 or more from any of the following, or combination of the following, activities:

a. Tangible property delivered in Hawaii;

b. Services used or consumed in Hawaii2 ; or

c. Intangible property used in Hawaii; or

(3) In the current or preceding calendar year, taxpayer has entered into 200 or more separate transactions involving any of the following, or combination of the following, activities:

a. Tangible property delivered in Hawaii;

b. Services used or consumed in Hawaii; or

c. Intangible property used in Hawaii.

Idaho

Visit the Sales/Use Tax Hub from the State Tax Commission. The tax commission has this to say about out-of-state shopping:

Internet and catalog companies that have a business location or employees in Idaho must collect Idaho sales tax. And a few businesses without an Idaho presence also voluntarily collect the tax.

Illinois

Here is the link for the Illinois Department of Revenue’s page on Wayfair.

Pursuant to the enactment of Illinois Public Act 100-587 and the subsequent U.S. Supreme Court decision in South Dakota v. Wayfair, Inc, remote (out-of-state) sellers with either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions, are required to register to collect and remit Illinois Use Tax for sales of tangible personal property made on or after October 1, 2018.

Indiana

Read the tax bulletin from the Department of Revenue or visit the Wayfair-related page on the Department of Revenue’s page.

Collection goes into effect on October 1, 2018 with the threshold below:

The threshold applies regardless of whether any of the 200 transactions would have been subject to Indiana sales or use tax or whether any of the $100,000 of revenue was generated by taxable sales.

Iowa

Both remote sellers and marketplace facilitators are required to collect taxes starting January 1, 2019 if they meet one of the following:

$100,000 or more in products and/or services or

200 or more separate sales transactions

See the rule for remote sellers and marketplace facilitators.

Kansas

See more information about sales tax from the Department of Revenue.

Kentucky

Kentucky Department of Revenue has this threshold for remote sellers:

HB 487, effective July 1, 2018, requires remote retailers with 200 or more sales into the state or $100,000 or more in gross receipts from sales into the state to register and collect Kentucky sales and use tax.

Louisiana

More clarity for remote sellers is currently in the works. Visit the Department of Revenue Remote Sellers website for more information.

Maine

Maine Revenue Services has a website with links to guidance for remote sellers. The website lists this threshold for remote sellers with an effective date of July 1, 2018:

A seller not otherwise required to register under Maine sales tax law meets the requirements of section 1951-B if, during the current or previous calendar year, it either sold tangible personal property, products transferred electronically, or taxable services for delivery into Maine in at least 200 separate transactions, or its gross revenues from Maine sales of tangible personal property, products transferred electronically, or taxable services exceeded $100,000.

Maryland

Visit the Comptroller of Maryland’s website to learn more about sales and use tax. According to the September 2018 Sales and Use Tax alert, the threshold for remote sellers is. This is effective October 1, 2018.

Gross revenue from the sale of tangible personal property or taxable services delivered into Maryland exceeds $100,000; or

Sales of tangible personal property or taxable services for delivery into Maryland in 200 or more separate transactions.

Massachusetts

Visit Massachusett Department of Revenue’s Sales and Use Tax page for more information.

Michigan

Read the Department of Treasury’s website on Sales and Use Tax for Remote Sellers. The page states:

Consistent with Wayfaireffective after September 30, 2018, Treasury will require remote sellers with sales exceeding $100,000 to – or more than 200 transactions with – purchasers in Michigan in the previous calendar year to pay sales tax.

Minnesota

Minnesota required marketplace facilitators or providers to collect sales tax on October 1, 2018.

Read the Sales Tax FAQ for more information, including the small seller exemption:

Minnesota law provides a Small Seller Exception, which does not require remote sellers to collect sales tax until their sales during a period of 12 consecutive months total either:

  • 100 or more retail sales shipped to Minnesota
  • 10 or more retail sales shipped to Minnesota that total more than $100,000

Mississippi

Visit the Department of Revenue’s site for Online Seller Guidance regarding sales tax. Or view the PDF directly. The threshold is quoted below.

Remote sellers with annual Mississippi sales in excess of the $250,000 small seller exception should register for a Mississippi Use Tax Account and begin collecting tax no later than September 1, 2018.

Missouri

Missouri House Bill 2390 deals with remote sellers and sales tax.

Montana

Montana has no state sales tax. Visit the Department of Revenue’s sales tax page for more information.

Nebraska

See the Department of Revenue’s FAQ on the collection of sales tax for remote sellers. The effective date for remote sellers to collect sales tax is January 1, 2019.

The small seller exemption is

Remote sellers are only required to register and collect Nebraska tax if they have more than $100,000 of sales into Nebraska or 200 or more separate transactions for delivery into the state annually.

Nevada

Read the Department of Taxation’s FAQ on Remote Sellers. The start date is October 1, 2018. See their exemption below.

Remote sellers are only required to register and collect Nevada sales or use tax if, in the previous or current calendar year, they have:

–  More than $100,000 of retail sales into Nevada, or
–  200 or more separate retail transactions for delivery into the state

New Hampshire

There is no state sales tax for New Hampshire.

New Jersey

See the Department of Taxation’s Sales and Use Tax information page for more information. New Jersey required marketplace providers to collect sales tax on November 1, 2018.

If you’re a remote seller, the threshold is:

  • The remote seller’s gross revenue from sales of tangible personal property, specified digital products, or services delivered into New Jersey during the current or prior calendar year, exceeds $100,000or
  • The remote seller sold tangible personal property, specified digital products, or services delivered into New Jersey in 200 or more separate transactions during the current or prior calendar year.

New Mexico

New Mexico has a gross receipts tax. The Santa Fe New Mexican reports that New Mexico is considering online sales tax as a result of the Wayfair ruling.

New York

Visit the Department of Taxation and Finance’s page on Sales and Use Tax for more information.

North Carolina

North Carolina Department of Revenue states this for remote sales:

All remote sellers having gross sales in excess of one hundred thousand dollars ($100,000) sourced to North Carolina or two hundred (200) or more separate transactions sourced to North Carolina in the previous or current calendar year (collectively “Threshold”) must register to collect and remit sales and use tax to North Carolina effective November 1, 2018 or 60 days after a remote seller meets the Threshold, whichever is later.

North Dakota

Visit the North Dakota Tax website for more information regarding remote seller sales tax. The start date is October 1, 2018, and the exception is as follows:

  • Taxable sales shipped to North Dakota meet or exceed $100,000 OR
  • Taxable sales shipped to North Dakota meet or exceed 200 separate transactions

Ohio

Check out Ohio Department of Taxation’s Sales and Use Tax FAQ for more information about remote sellers.

Oklahoma

This news release required remote sellers and marketplace providers to collect sales tax on July 1, 2018. Read this news release from the Oklahoma Tax Commission for more information. The threshold for small sellers is:

State law (HB1019xx) requires remote sellers who sold at least $10,000 worth of taxable merchandise in the state of Oklahoma during the previous 12 months to collect and remit the tax or to comply with statutory notice and reporting requirements.

Oregon

Oregon has no state sales tax. Visit the Department of Revenue’s page for more information.

Pennsylvania

Pennsylvania required marketplace facilitators to collect sales tax on March 1, 2018. Visit the Department of Revenue’s page for more information regarding remote sellers. The exception is below.

A remote seller that makes taxable sales totaling $10,000 or more to Pennsylvania customers in the previous calendar year must elect one of two options by March 1, 2018

Rhode Island

Visit the Division of Taxation’s website for more information. View this direct link to the PDF for more information regarding a non-collecting retailer (similar to or same as a remote seller). The threshold is below:

Rhode Island General Laws § 44-18.2-3 requires all non-collecting retailers who in the previous calendar year made $100,000 or more in gross revenues from sales in Rhode Island or 200 or more transactions in Rhode Island to either (1) register for a Rhode Island sales tax permit and collect and remit the sales or use tax in Rhode Island or (2) comply with various notice requirements in the statute.

Marketplace facilitators or retail sale facilitators have certain filing requirements.

South Carolina

Look at the Department of Revenue’s site for more information. The threshold is below with a start date of November 1, 2018.

In South Carolina, a remote seller whose gross revenue from sales of tangible personal property, products transferred electronically, and services delivered into South Carolina exceeds $100,000 in the previous or current calendar year has economic nexus (substantial nexus) with South Carolina and is responsible for obtaining a retail license and remitting South Carolina Sales and Use Tax.

South Dakota

Visit the Department of Revenue’s site for more information. South Dakota’s marketplace facilitator tax law (Senate Bill 2) goes into effect on March 1, 2019.

If you’re a remote seller, then the threshold is below:

  • Your business’s gross revenue from sales into South Dakota exceeded $100,000; or
  • Your business made sales for delivery into South Dakota in 200 or more separate transactions.

Tennessee

Tennessee’s Department of Revenue has this guidance regarding the Wayfair ruling, but note that this may likely change.

If a dealer has no physical presence in Tennessee, the dealer is not required to collect Tennessee sales and use tax until the Department issues public notice stating the specific date and circumstances under which such dealers must begin to collect and remit the tax.

Texas

Visit the Comptroller’s website for FAQs regarding remote sellers.

Utah

Utah’s State Tax Commission has a page devoted to remote sellers and sales tax. The start date is January 1, 2019, and the threshold for small sellers is below.

  1. receives gross revenue of more than $100,000 from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in Utah; or
  2. sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in Utah in 200 or more separate transactions.

Vermont

Visit the Department of Taxes for more information regarding sales and use tax. Remote sellers were required to collect and remit beginning July 1, 2018, and the threshold is below:

An out-of-state vendor making sales into the State must register and collect sales tax if they made sales of at least $100,000 or 200 individual transactions during any preceding twelve -month period.

Virginia

Visit the Virginia Tax website for more information regarding sales and use tax.

Washington

Visit the Department of Revenue’s site for remote sellers. Both marketplace facilitators and remote sellers were required to start collecting on October 1, 2018. The exception is below.

Beginning October 1, 2018, remote businesses that exceed $100,000 in retail sales to, or have 200 or more annual transactions with, Washington consumers must register their business and collect and submit retail sales/use tax.

West Virginia

Visit the State Tax Department website for more information. The start date is January 1, 2019, and the small seller exception is below.

This collection requirement does not apply to a remote seller that during calendar year 2018 had gross sales of tangible personal property and/or services for delivery in West Virginia of $100,000 or less and had fewer than 200 sales transactions for delivery in West Virginia.

Wisconsin

Visit the Department of Revenue’s site for more information on remote sellers. The start date is October 1, 2018 with the exception below.

The rule is consistent with the Court’s decision in Wayfair, which approved a small seller exception for sellers who do not have annual sales of products and services into the state of (1) more than $100,000, or (2) 200 or more separate transactions.

Wyoming

See this direct link to the PDF for Wyoming’s guide to remote sellers and sales tax. The start date is February 1, 2019 and the threshold is below.

This requirement applies only if in the current calendar year or the immediately preceding calendar year; (1) the gross revenue from sales into Wyoming exceeds $100,000 or (2) the business has made 200 or more separate transactions for delivery into Wyoming.

States That Require Marketplace Facilitators to Collect and Remit

This list is by no means final. Many states are in the process of determining how to deal with the Wayfair decision.

  • Alabama – January 1, 2019
  • Connecticut – December 1, 2018
  • Iowa – January 1, 2019
  • Minnesota – October 1, 2018
  • New Jersey – November 1, 2018
  • Oklahoma – July 1, 2018
  • Pennsylvania – March 1, 2018
  • South Dakota – March 1, 2019
  • Washington – October 1, 2018

Conclusion

Because of the Wayfair ruling in June 2018, most, if not all, of the states will look toward requiring remote sellers to register, collect, and remit sales tax.

Pros and Cons of Offering Free Shipping on eBay, Amazon, or eCommerce

Should I offer free shipping? This question crosses many sellers’ minds when they’re creating their listing on eBay or Amazon. While there are many reasons to offer free shipping, there are also some reasons why you should consider charging customers for shipping.

We’ll go over the pros and cons of free shipping in this article. eBay sellers may find this article more useful. If you’re an FBA seller, then all Prime customers already get free shipping.

Pros

1. Free Shipping Icon or Emphasis

Free shipping is generally emphasized in some way. Take a look at these Amazon and eBay products with and without free shipping.

Notice that for both Amazon and eBay, the word free is somehow emphasized so that it stands out for customers. On Amazon, it’s written in all capital letters, while eBay bolds the free shipping offer.

Amazon

Amazon items free shipping and without

eBay

eBay Free Shipping and without Free Shipping

In Amazon’s case, the Prime logo adds value to the listing since Prime members know that they can use their Prime subscription to get free shipping.

Sellers with a shipping charge may be turning away Prime subscribers who believe they should receive free shipping since they’re paying for a service that advertises it.

2. Simplifies Shopping Process and Price Comparison

Sellers should make the shopping process as simple as possible for customers. That means reducing the work a customer has to do in order to purchase a product.

In our example above, it’s clear what the totals will be for customers on Amazon and eBay. Adding shipping charges makes shopping a bit more difficult.

Sellers are asking customers who are shopping on price to do some mental arithmetic. This introduces at least one more step in the shopping flow. Consequently, it reduces the likelihood that customers will purchase the product if they’re having to do more work.

3. Free Shipping Filters

Many online retailers, including Amazon, give customers the option to filter out all sellers with shipping charges. If customers click on this, your listing or offering will disappear from the results even if your total combined price and shipping is lower than other sellers.

Free shipping filters

4. More Views

As a result of offering free shipping across your products, you’ll get more views on your listing. Customers won’t simply bypass your listing because of a shipping charge. Naturally, some of those views will convert to sales.

5. Customers Love Free Things

Customers love knowing that they’re getting something for free even if it’s not quite free.

For example, a $100 item with free shipping is more appealing to customers than an $85 item with $15 shipping. Even if the total amount is $100, the appeal of getting something for free is powerful.

Another point to consider is that some states charge tax on shipping. For instance, Washington state charges sales tax on shipping, while California doesn’t (handling charges are taxed). As a result, items may be cheaper for residents in some states.

Using our example above and a sales tax rate of 10%, a resident in California would pay a total of $110 on a $100 item with free shipping. But with an $85 price and a $15 shipping charge, he’d pay $108.50, for a savings of $1.50.

Cons

1. Lower Profits if you Miscalculate Shipping Charges

If you offer free shipping and don’t accurately combine the shipping cost into your product price, you could end up earning very little, if any, on your sale. Sellers new to eBay make this mistake regularly: they offer free shipping or price into the listing a flat shipping rate to drive sales. But they’ll fail to factor in shipping costs to customers across the country or to residents of Alaska or Hawaii.

When sellers go to purchase postage, they’ll be surprised to see a larger-than-expected shipping fee. Some sellers may even lose money on the sale.

Canceling the transaction isn’t a good idea for new sellers since that would affect their metrics more than a seller with a lot of sales volume.

2. Fewer Views

As with the advantage above, you’ll get fewer views for your listing simply because customers will ignore your product or they’ll filter it out completely.

3. Difficult to Calculate Profit

Whether you’re selling domestically or internationally, you won’t have a clear idea of how much you can expect to earn until the product sells. That’s because how much you pay for shipping will vary greatly depending on where the customer is located. If you have an international customer, then you’re likely to spend even more on shipping.

A bonus is that sellers who are located near you may be more likely to purchase from you since their shipping costs would be lower than purchasing from a seller across the nation.

With a shipping charge, you’ll always know what your profit is for any given product. This is helpful to sellers who need to be able to estimate their profit or cash flow for inventory purchases.

4. Refunds and Returns

Return shipping fees may be your greatest consideration when deciding between charging for shipping or offering free shipping.

If you sell a product with free shipping and a customer requests a refund, you’ll have to refund the entire amount. That’s because shipping was free. You’d lose money on shipping to the customer and on possibly on the return shipping cost.

However, if you included a shipping charge, then you’d refund the amount, less shipping. Depending on the reason for the return, the customer may be responsible for return shipping.

Of course, your loss on the sale depends on the reason for the return and eBay’s or Amazon’s policies. Many sellers choose to refund the complete amount to avoid any negative feedback or review.

Conclusion

Whether or not you should offer free shipping depends on your business situation. Many small businesses can’t afford generous shipping policies since even a return rate of a few percent can quickly erode profits in today’s competitive retail landscape.

If you’re selling items that are small and light, then free shipping makes sense since costs for those can be accurately estimated. But for sellers of large products, free shipping may be a bad idea since customers who are farther away will significantly increase shipping costs.

Consider using Amazon FBA for some of your larger products. Amazon’s fulfillment fees don’t change often, so you’ll have a better idea of how much to expect from each sale.

Read other SellerZen articles:

10 Free eBay Tools New Flippers and Resellers Must Check Out!

Check out this list of must-have eBay tools, apps, and websites to maximize your time when you flip or resell items!

There are a lot of inefficiencies when it comes to flipping or reselling. Many sellers perform tasks manually and waste precious minutes throughout the day when they can automate or streamline certain processes. All those few minutes add up, sometimes to more than one hour!

That’s one extra hour to relax, source even more products, or even list and sell more! By streamlining your processes, you’ll be more competitive, increase your revenues, or just relax with your newfound time.

We’ll go over ways you can streamline and save some time using these eBay tools, apps, and services. If you’re thinking about selling on Amazon, check out our massive list of Amazon tools, apps, and services! Some even work with eBay.

eBay Tools for Price Checks

Bidvoy

Bidvoy home

 

This site gives you the price history of a product. It’s similar to CamelCamelCamel for Amazon. There’s also a great suggestion for when to buy and sell, giving you the lowest and highest prices.

Checkaflip

Checkaflip home

 

Save time from having to search, filter by sold and current listings, and estimating what the average selling price for your item is on eBay. Instead, type in the item on Checkaflip to get the average current and sold price for items on eBay.

Filter by new and used and get a better idea of how many of the listings have sold to estimate demand and likelihood of a sale.

Pricepirates

Pricepirates results for Nintendo Switch

 

This website gives you a quick way to compare prices between eBay and Amazon. It’s great for sellers who want to see which site will give them the most for the product.

Don’t forget to take into account the fees involved. Amazon’s fees are slightly higher than eBay, but the tradeoff is that more sales happen through Amazon than eBay.

eBay Tools for Listing

eBay App

eBay App landing page

 

Most sellers probably already have this app. But for those of you who don’t, download this app now! eBay’s app makes listing items very easy. You can simply scan the barcode of an item and snap a few pictures to get your item listed.

Pixlr

Pixlr Editor home

 

You don’t need to spring for an expensive Photoshop subscription if you just need some simple image editor. Pixlr’s editor has all the basic features you’ll need for your eBay images.

Title Builder

Title Builder home

 

Ever wonder why some listings sell better than others? It’s because titles, descriptions, and images are better optimized than other listings. Use Title Builder to look up Hot, Popular, and Searched keywords on eBay to optimize your listing titles and get those sales!

WowLister

WowLister home

 

The free plan is only 10 listings per month, but it’s great for new sellers or personal use. If you’re looking for a bulk lister service, you’ll have to find another solution.

Other Free eBay Tools

FatFingers

FatFingers home

If you’ve been around eBay long enough, you’ll recognize this site. Type in a keyword or a product you want to search for, and this website gives you search results for spelling mistakes made by careless sellers.

These unoptimized listings allow you to purchase products at a very low price for resale at the market rate.

eBay PayPal Fee Calculator

FinalFeeCalc home

Want to know what your total profit is after an item sells? Use this calculator to give you a fairly accurate estimate of your eBay and PayPal fees. Enter your Cost of Goods to get your net profit for the sale.

Pirate Ship

Pirate Ship home

See if you can get cheaper rates through Pirate Ship to save on shipping fees!

Also try FitShipper if you want to see packaging dimensions and rates.

Use one or more of these apps today to streamline your workflow for eBay! Veteran sellers will recognize at least one or more of these useful services. If you’re new, don’t waste any more time or money by doing things manually.

Automate and streamline your processes so that you can spend more time sourcing products to sell or searching B2B marketplaces like Alibaba for more inventory!

Looking for other free services and tools? Check out these articles: