Amazon vs. Ebay vs. Bricklink vs. Local Marketplace

[Val-E]

I know this has been asked before but I though it would be good to update it in 2017.

You can choose multiple answers but I kindly ask to pick only the main (to a max of 3) ones that you currently have the most sales on.

[Just_Here]

28 minutes ago, RonBurgundy45 said:

I know, so true. How would he take it though if I had a YouTube channel, that was essentially a business (theoretically making money from ads although it doesn't matter if I do or don't) to showcase my collection hence meaning I would never make profit because I would always be breaking even or less depending on sales volume, hence there would be no need to pay tax as there would be no profit.

Are you talking about monetizing some Lego videos you plan to upload to YouTube? If so, you still have to pay taxes on that income in the US.

If not, I am interested in some of the details of your business model. Do you have a YouTube following as of yet?

 

[RonBurgundy45]

In the UK we only pay taxes on profit. Monetizing the YouTube account is irrelevant in the situation as it just acts as the business. The aim isn't to make additional money from YouTube (its unlikely anyway)

Example:

1) I buy two sets of LEGO at £10 each planning to sell one for profit and keep the other for my personal collection (At this stage I would be -£20 on my tax return for the year)

2) I sell one of the sets for £12 and a profit of £2 (forget the other complications with selling and focus on the fact that I would now be -£8 on my tax return)

3) Now I use the set I keep to upload a YouTube tutorial about how to build it under a channel that I would call my business. I will never sell this set and it will therefore have been purchased for "business purposes." It will forever live in my collection because I love it.

Overall if this business model was allowed (DISCLAIMER: I really don't know so never quote me on this plan) by HMRC/Inland Revenue then you would benefit in two ways: a) you get £2 saving on a set you wanted to keep and you don't have to pay the 20% (UK) Tax on the profit you made (£2)

 

I suspect that the tax authorities may only allow you to apportion a % of the value of your 'keeper' set to your tax return. 

[Val-E]

If that theory were valid, HMRC would be in even worse financial shape than Toys R Us.

[Goofball814]

1 hour ago, RonBurgundy45 said:

In the UK we only pay taxes on profit. Monetizing the YouTube account is irrelevant in the situation as it just acts as the business. The aim isn't to make additional money from YouTube (its unlikely anyway)

Example:

1) I buy two sets of LEGO at £10 each planning to sell one for profit and keep the other for my personal collection (At this stage I would be -£20 on my tax return for the year)

2) I sell one of the sets for £12 and a profit of £2 (forget the other complications with selling and focus on the fact that I would now be -£8 on my tax return)

3) Now I use the set I keep to upload a YouTube tutorial about how to build it under a channel that I would call my business. I will never sell this set and it will therefore have been purchased for "business purposes." It will forever live in my collection because I love it.

Overall if this business model was allowed (DISCLAIMER: I really don't know so never quote me on this plan) by HMRC/Inland Revenue then you would benefit in two ways: a) you get £2 saving on a set you wanted to keep and you don't have to pay the 20% (UK) Tax on the profit you made (£2)

 

I suspect that the tax authorities may only allow you to apportion a % of the value of your 'keeper' set to your tax return. 

As a tax accountant, and former state auditor, I can tell you that in the US, you best not co-minggling business and personal funds. Such as, you should never have a business and personal transaction on the same receipt, and payment should be completely separate accounts.

Again, in the US, ( I don', know UK tax law) if you co-mingle business and personal funds, the IRS can, and will,  disallow all deductions. I.E your example, you 2 buy sets for $10 ( 1 for self and 1 for resale, on same recipt, with same bank payment), sell 1 for $20 and keep the other. The IRS will disallow any deduction for cost, so you get no deduction, and owe tax on whole $20.

Edited February 5, 2018 by Goofball814

[donbee]

I know, so true. How would he take it though if I had a YouTube channel, that was essentially a business (theoretically making money from ads although it doesn't matter if I do or don't) to showcase my collection hence meaning I would never make profit because I would always be breaking even or less depending on sales volume, hence there would be no need to pay tax as there would be no profit.

YouTube channel as a marketing branch of your business is totally legit.

What you’re suggesting is already under consideration by the irs. A lot of people want to make their hobby a small business do they can write off their hobby. If you do a little googling about starting a small business this topic comes up a lot. The basic advice is that the irs gives you two years to make a profit. After two years, if your business is still in the red, they start inquiring into what the issue is.

 

So, if you’re a collector who is dabbling in reselling (be careful, don’t get high on your own supply), you could use YouTube to market the sets you’re selling. But since you sell only NIB, and not the sets you have to open up and build for your YouTube channel, well that’s just the cost of marketing. If you regularly sell used sets, well you just have a lot of inventory you have turned over yet.

[RonBurgundy45]

There's maybe a strategy somewhere in amongst all the red tape but It's not worth ruining your hobby over if you get it wrong though. 

Lots of advice taken, thanks.

[roxio]

12 hours ago, RonBurgundy45 said:

In the UK we only pay taxes on profit. Monetizing the YouTube account is irrelevant in the situation as it just acts as the business. The aim isn't to make additional money from YouTube (its unlikely anyway)

Example:

1) I buy two sets of LEGO at £10 each planning to sell one for profit and keep the other for my personal collection (At this stage I would be -£20 on my tax return for the year)

2) I sell one of the sets for £12 and a profit of £2 (forget the other complications with selling and focus on the fact that I would now be -£8 on my tax return)

3) Now I use the set I keep to upload a YouTube tutorial about how to build it under a channel that I would call my business. I will never sell this set and it will therefore have been purchased for "business purposes." It will forever live in my collection because I love it.

Overall if this business model was allowed (DISCLAIMER: I really don't know so never quote me on this plan) by HMRC/Inland Revenue then you would benefit in two ways: a) you get £2 saving on a set you wanted to keep and you don't have to pay the 20% (UK) Tax on the profit you made (£2)

 

I suspect that the tax authorities may only allow you to apportion a % of the value of your 'keeper' set to your tax return. 

At stage one wouldn't you be -£10 on tax return as only one set was purchased with intent to resell?

[Fenix_2k1]

Basically if you describe anything as "My Collection" you can't use that against your tax. Only items owned by the business can be included.

[RonBurgundy45]

5 hours ago, Fenix_2k1 said:

Basically if you describe anything as "My Collection" you can't use that against your tax. Only items owned by the business can be included.

I think that's a fair way to put it. Any meddling in creative 'marketing' ideas may lead to complications that would be a nightmare in the long term.

The Tax Man never loses. 

[t_mafia]

On 2/4/2018 at 2:44 PM, zaphoid said:

You're going to be closed out of Amazon as its gated.  So its mostly eBay and other smaller sites like Facebook Marketplace, Offer Up, and Let Go.

I have never sold on Amazon but I was considering it this summer. I've never paid attention to the FBA thread. Does gated mean you have to apply to sell it? When I was looking around today I noticed that some products required an application. I also saw that you can use your own shipping or FBA shipping. I'm not sure if that changes anything? Thanks

[Sfcommando14]

I have never sold on Amazon but I was considering it this summer. I've never paid attention to the FBA thread. Does gated mean you have to apply to sell it? When I was looking around today I noticed that some products required an application. I also saw that you can use your own shipping or FBA shipping. I'm not sure if that changes anything? Thanks

Unless you already sell Lego on Amazon, you cannot sell on there, FBA or FBM. Getting through the gate requires invoices from the manufacturer or an authorized distributor. No one has (or shared) how to do this, as we all buy Lego from retailers, and retail receipts are not sufficient.

[t_mafia]

13 minutes ago, Sfcommando14 said:

Unless you already sell Lego on Amazon, you cannot sell on there, FBA or FBM. Getting through the gate requires invoices from the manufacturer or an authorized distributor. No one has (or shared) how to do this, as we all buy Lego from retailers, and retail receipts are not sufficient.

That's unfortunate. This must have happened recently?

[Sfcommando14]

That's unfortunate. This must have happened recently?

It has been happening to more and more products on Amazon over the last 3 years, but late summer/fall 2016 for Lego IIRC.

[The Builder]

Hello again, 

I wanted to ask my fellow LEGO investors for advice on which website is best for selling, Amazon, Ebay, or Bircklink? I've done pretty well on ebay, but I haven't explored Bricklink at all. And I've tried to sell on amazon a few times. And I've heard great things about all of them. But I wanted to ask real LEGO investors with experience in selling online from many different channels. 

Which site do you prefer? And why? 

Thank y'all!  

[exciter1]

12 minutes ago, The Builder said:

Hello again, 

I wanted to ask my fellow LEGO investors for advice on which website is best for selling, Amazon, Ebay, or Bircklink? I've done pretty well on ebay, but I haven't explored Bricklink at all. And I've tried to sell on amazon a few times. And I've heard great things about all of them. But I wanted to ask real LEGO investors with experience in selling online from many different channels. 

Which site do you prefer? And why? 

Thank y'all!  

I messed up the merge.  If your answer isn't here, please search the forum. This discussion is all over the place and there are probably a dozen more threads for this.

[Saruman]

I own two LEGO Forma super boxes, buy-in $85 for each of them

so two of each of the 81000, 81001, 81002, and 81003. Any idea where I should sell them? Everyone is competing for the lowest price on ebay and it got down to 170 now it is back up at 200. I am allowed to sell LEGO on amazon but then I would need to create a listing, but then I can choose the price. I have only made one purchase on bricklink so I TECHNICALLY could try selling it there. Just wanted to heat ya'lls thoughts.