Comments

  1. How do you deal with the 1099k
    And what do you do on this specific product with returns people just return open ones and register ones that you can’t even log in it’s just a locked iPad

    • @ell – I let my accountant deal with the 1099k… But I do keep meticulous records — see also Preparing to Resell

      With specific product returns – I could boil them down to 3 types: Opened but not used (which I’ll just sell as like new, open box); Opened and used — in which case, I’ll either make a case to Amazon for only a partial refund, or may try to return to the original store; and intentionally fraudulent – e.g. I had someone buy a 32GB iPod Touch, and return a 16GB iPod Touch, in which case I made the case to Amazon, they saw the merit and reimbursed me the full value. In most cases you can reset the tablet to factory settings, as well.

  2. Any insight on what ranking is good enough?
    This: You can see the “Best Sellers Rank” at #200 in Computers & Accessories, and #95 in Electronics > Computers & Accessories > Tablets, so you know this will be a pretty good seller.

    I’m wondering about other categories: here is an example (my kids really want this so I sourced it wholesale just to see)
    Amazon Best Sellers Rank: #2,486 in Kitchen & Dining (See Top 100 in Kitchen & Dining)
    #6 in Home & Kitchen > Kitchen & Dining > Coffee, Tea & Espresso > Tea Accessories > Tea Strainers & Filters > Tea Ball Strainers
    #926 in Kitchen & Dining > Kitchen Utensils & Gadgets

  3. Hi, I’m new to reselling merchandise, just been reading about it on this blog and other blogs today. I came across a discussion about tax implications which up until then I was not aware there was any. If according to this post I buy iPad’s through Sears and resell them through Amazon FBA is that technically a business with a Schedule C? Does Amazon issue a 1099? Or is this not something to worry about in practice?

    And if there are tax implications is there any way to resell merchandise without being deemed a business, 1099’s etc.?

    Thanks.

    • Hi Matt, welcome! So, let me caveat this: I am not a tax professional. There pretty much will be tax implications if you end up generating a cash profit–if you just go for miles and points, perhaps not. Amazon won’t send you a 1099 if you do fewer than I think $20k or 200 transactions (more information: here). Does that answer your question?

      • Hi Trevor. Thanks for the response and attaching the Amazon article. So I guess my question would be if you are doing under 20k and under 200 transactions per year and therefore not generating a 1099 from Amazon do you actually report it? I realize you’re not a tax professional, just wondering if when you do your own reselling you bother reporting all your proceeds? The reason I’m curious is because I don’t see myself doing extensive reselling. I would probably just want to take advantage of the best deals (such as buying iPad’s through Discover portal from Sears and reselling for hefty profit). So I figure if I’m only doing small amounts I don’t even want to bother with the whole thing if I’m going to end up having to report the reselling proceeds, setting up a Schedule C business, etc. Interested to hear your thoughts.

        Thanks!

  4. Thanks for your guides, Trev. Just one problem, the picture is too small when I clicked on it, its almost impossible to read 🙂

    • @Sam – thanks for your feedback – I’ve had it on my list to replace those graphics, hopefully will get them replaced in the next week or two.

Trackbacks

  1. […] Beginner’s guide to Fulfillment by Amazon: Analyzing and Adding a New Product – The latest in Trevor’s series about getting an account and selling merchandise on Amazon. I have been a casual seller over there for quite a few years, but haven’t done anywhere near the volume of him. Having the ability to sell on Amazon is huge if you are looking to get into that game. […]

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