Sell With Success Online

Kiplinger.com offers these nine tips to help you sell your stuff online:

1. Buy before you sell. Learn how the process works, and build a reputation for honest dealing.

2. Research prices. Surf other sites to find out what constitutes a fair price, and focus on completed sales, says Ina Steiner, an industry analyst on AuctionBytes. "Just because an item is listed for $100 doesn’t mean it’s going to sell at that price." For potentially high-value items, use an appraiser.

3. Start small. Limit your first sales to one or two low-value items, and keep in mind that some items, such as books, are easier to ship than others.

4. Leave the Matisse to the experts. You may want to save the good stuff for an auction house, says Steiner. "Auction houses know who the collectors are."

5. Use strong key words. Your item will stand out if your listing title uses brand names and defining characteristics, such as "Coach houndstooth Hobo bag," as opposed to "designer bag."

6. Include several pictures. Most sites let you post at least one image free. It’s worth paying extra for a gallery shot that appears with search results to give browsers a preview of your offering.

7. Time the close. Try to close on a weekend during the day, when more people are paying attention.

8. Tend to business. List shipping and payment options clearly, and send your item out promptly. Poor fulfillment will spoil your feedback.

9. Tell Uncle Sam. Even if you’re a casual seller, talk to your accountant about tax obligations. The IRS wants to know, "Is this a hobby or a business?" says Steiner.

I was very happy to see that learning your tax obligation when selling online made the list of tips.  This is a hot topic as the IRS is pushing for brokers like eBay and Amazon to report personal data on customers to the IRS (see ‘Are you ready for the ecommerce tax?‘), and as the IRS prepares to audit more small businesses.

For more information about your tax liability when selling online, please see ‘What taxes are you responsible for as an eBay seller?‘ and ‘Top Five Tax Tips for eBay Sellers‘.

Tags: ebay tax, income tax on ebay sales, online tax, online business, ebay business

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