Predictions on Discontinuing Sets and their Secondary Market Value

thehockeyboy

Once the government forces all ebayers to report their income, the yard sale will be over. eBay knows the day will come so the obvious evolution is into an amazon type website

doriansdad

y2josh said:

A) What's the Zappos business model?
B) I can only see these moves by eBay as being a road that leads directly to the implosion of their business. Although I really have no idea if it may actually be in their best interest to run off all the small sellers and deal only with the large businesses. Maybe that route is a lot more profitable than I think it is.

The model will be to require all sellers to offer free shipping and a return policy. So far they have been nudging sellers along this route via discounts and better search placement. It will become policy tho in the future for all sellers. That is when I am out. The free shipping I don't mind so much as we will just all pad our prices....combined shipping will become a thing of the past tho. Returns because a buyer finds a better deal a few weeks later or has remorse I certainly don't get paid enough to deal with for this gig.

wilbur

Concerning the PayPal $20k AND 200 transactions... Are we talking total transactions (sending AND receiving money) or simply receiving? Obviously that is an important point to note for anyone who uses a payday account to purchase any goods.

Similar topic... I have dealt with the IRS before on Capital Gains. (This is for anyone who does, as of this moment, net more than 20k and 200 transactions annually). There ought to be a way to report your income as "Investment Capital" rather than as "Business income." Regardless, you'll pay much less taxes if you itemize your business expenses... i.e... the price you paid in the first place for acquiring the sets you eventually sold. That might a no brainer to most, but if you didn't know you could do that, its definitely worth keeping records of what you paid for sets and when.

Perhaps admin can move this to a thread that deals specifically with investment/taxes/fees/reseller odds and ends...

madforLEGO

wilbur said:

Concerning the PayPal $20k AND 200 transactions... Are we talking total transactions (sending AND receiving money) or simply receiving? Obviously that is an important point to note for anyone who uses a payday account to purchase any goods.

Similar topic... I have dealt with the IRS before on Capital Gains. (This is for anyone who does, as of this moment, net more than 20k and 200 transactions annually). There ought to be a way to report your income as "Investment Capital" rather than as "Business income." Regardless, you'll pay much less taxes if you itemize your business expenses... i.e... the price you paid in the first place for acquiring the sets you eventually sold. That might a no brainer to most, but if you didn't know you could do that, its definitely worth keeping records of what you paid for sets and when.

Perhaps admin can move this to a thread that deals specifically with investment/taxes/fees/reseller odds and ends...

I believe it is receiving funds only (someone can correct if I am wrong I'm sure)

madforLEGO

prevere said:

Sidetracking back on topic for a moment. I'm curious what's the consensus on Dynamic Duo EOL'ing. Launched in January 2012. Does it sell out after Xmas, mid-next year or after Xmas next year?

Sidetracking back on topic..LOL.
That just cracked me up.
I dunno if it will rise dramatically, but I would say while I'm sure people are stocking up on these they will be in demand due to the amount of figures in them, and sought after figures at that. Will they reach over 100? Probably not due to the cheap price of the set and that many people will probably have the same idea to buy them, but I can see it going up in price. I guess it also depends on if some of these figures are gone for good after this set runs its course, or if they come back in another set.

dragonhawk

^^ correct

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

madforLEGO

dragonhawk said:

^^ correct

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

@dragonhawk: Thanks for the link! A lot of helpful information there.

BuriedinBricks

The exclusive nature of Dynamic Duo should make it a decent pickup for after it's gone. It's one of those sets that's hard to ever find on sale though, so getting a stockpile of them at a lower-risk price will be difficult.

LegoFanTexas

Something to consider regarding the 200 transactions and $20,000 total sales number.

It is indeed both, if you exceed both, PayPal will issue you a 1099-K which will be reported as gross income to the IRS, either to your SSN or to a EIN that you have provided PayPal.

It will then be up to you to report deductions against that income or pay income taxes on the whole thing.

Amazon, on the other hand, has decided to move it up to 50 transactions with no dollar limit. If you hit 50 sales on Amazon in a year, regardless of the dollar amount, Amazon wants your SSN or EIN. It may or may not actually report if you're under 200/$20K, but they will be able to.

Amazon is a great place to sell for volume sellers and businesses, it is not that great for hobby sellers. Always note that you can get anything returned within 30 days, for any reason or no reason, and it does not matter if the customer just " opened the set and changed their mind".

Yes, if the customer opens the set, you can charge a 20% restocking fee, but if you do, Amazon keeps part of the fees and you are likely to get a negative feedback, or worse, an A-to-Z claim. If the item is under $300 and you don't happily agree to a return, the customer can open an A-to-Z claim, Amazon will refund them out of your account, and the customer will not be required to return the item. Over $300, and usually Amazon requires a return before refund. Usually... Go read the seller forums over on Amazon to sell all the pissed off hobby sellers who feel robbed because Amazon refunded the customers when the hobby sellers tried to refuse returns and the customers got to keep the items and got their money back to boot.

Just today I refunded an Imperial Flagship I sold for $400 last month, came back to me opened, but there is little I can do. Now I've sold 20+ of them over the past 3 months, so having 1 come back isn't the end of the world, but how would you feel if you only had 1 or 2 to sell and that happened?

mathew

LegoFanTexas said:

Just today I refunded an Imperial Flagship I sold for $400 last month, came back to me opened, but there is little I can do. Now I've sold 20+ of them over the past 3 months, so having 1 come back isn't the end of the world, but how would you feel if you only had 1 or 2 to sell and that happened?

Yeah, I wouldn't sell Lego on Amazon. I personally have had pretty good experiences selling other new and used items on Amazon. I've always received positive feedback as well. I just wish Amazon would give sellers a little more leeway on shipping costs.

LegoFanTexas

^ They do, if you have a Selling Professionally account. I can set my own shipping rates, but you have to be a volume seller to do it.

If you have a Selling Individually account, you can't change shipping rates.

http://www.amazonservices.com/content/sell-on-amazon.htm?ld=AZSOAMakeM

If you look at the two links on that page, the Selling Professionally account is the one that lets you do promotions, set shipping rates, set time to ship, and a bunch of other fun stuff.

Also, keep in mind that Amazon only pays you every 14 days and most new selling accounts get put under a review, so your first payment may be as long as 90 days out.

Great place to sell as a professional, lousy place to sell as a hobby. The rules and seller metrics are designed to favor volume sellers.

thehockeyboy

LFT, it is the same at PayPal. After 50 transactions they require you provide your tax id, though you won't get the 1099-K until you hit 200 transactions and 20k.

http://www.amazon.com/gp/help/customer/display.html?nodeId=200663310

LegoFanTexas

^ Good to know about PayPal. Of course, not an issue for me since this is a business and I have long ago provided that info to both. :)

nbaisfantastical

Hello, I'm new to the site and was hoping to get some input on which recently sold out sets would be the better bet to pick up based on future value. My local TRU had 2 Fire Temples for $115 each and my Lego store still has WVC in stock (I noticed these went from Sold Out on [email protected] to out of stock to back to Sold out). I am able to buy 2 sets now so was curious what thoughts were on the better set. Thanks.

gmpirate

^ I really like the City Tipper Truck.

Bandit

Given the last few days, it appears we need a new thread entitled "I'm new -- Someone please give me all the answers so I don't have to figure anything out myself". Sorry, a bit cranky tonight.

BoiseState

My TRU put out a bunch of Funhouses.. And they have the spend $100 get $25 off going on.

LegoFanTexas

Bandit said:

Given the last few days, it appears we need a new thread entitled "I'm new -- Someone please give me all the answers so I don't have to figure anything out myself". Sorry, a bit cranky tonight.

Amen...

I don't mind helping people out, but there are 161 pages of gold here and the answer to that question should be obvious (Fire Temple vs. Winter Cottage) to anyone who has done even basic research.

legoprods

LegoFanTexas said:

Bandit said:

Given the last few days, it appears we need a new thread entitled "I'm new -- Someone please give me all the answers so I don't have to figure anything out myself". Sorry, a bit cranky tonight.

Amen...

Gotta admit its true. I have been following this thread since its humble beginnings (about page 23 I think it was).

You'll find out that you never know enough.

Now back into the dark side of the moon.

-G

LegoFanTexas

:)

I'll even make it easier...

2507 - Fire Temple - Came out 18 months ago, it is now marked as sold out on [email protected] and almost everywhere else. Part of the Ninjago line which has done really well in retirement, some of the sets have done 3x MSRP less than 1 year after retirement. That is rare for any LEGO set, much less a non-licensed kids theme.

10229 - Winter Village Cottage - Came out 2 months ago, 4th in the line of Winter Village sets, should be around another 2 years at least. This will be for sale online for 2 years and in the stores every holiday season until at least Christmas 2014.

prevere

LegoFanTexas said:

Amen...

I don't mind helping people out, but there are 161 pages of gold here and the answer to that question should be obvious (Fire Temple vs. Winter Cottage) to anyone who has done even basic research.

I wouldn't quite say 161 pages. Page 1 is asking if EN, WTS or Endor are going to retire soon. Probably about 90-100 pages of gold. And 61 pages of I told you so.

Supersympa

did you notice that Series 8 minifigures is out on shop at home, now that series 9 is out, and more and more difficult to get let's say a sealed box. given it was only 3 months life, I think those specific minifigures will do well.

madforLEGO

BoiseState said:

My TRU put out a bunch of Funhouses.. And they have the spend $100 get $25 off going on.

yeah thinking about getting a couple of #4207

Supersympa said:

did you notice that Series 8 minifigures is out on shop at home, now that series 9 is out, and more and more difficult to get let's say a sealed box. given it was only 3 months life, I think those specific minifigures will do well.

Series 8 has been gone for a few weeks now, since LEGO [email protected] had them for 50% off, needless to say they went pretty quick.

LegoFanTexas

Series 8 went within an hour of the Black Friday sale at 50% off.

chrisdojo

And Series 7 wasn't far behind with the Black Friday sale.

nbaisfantastical

LegoFanTexas said:

:)

I'll even make it easier...

2507 - Fire Temple - Came out 18 months ago, it is now marked as sold out on [email protected] and almost everywhere else. Part of the Ninjago line which has done really well in retirement, some of the sets have done 3x MSRP less than 1 year after retirement. That is rare for any LEGO set, much less a non-licensed kids theme.

10229 - Winter Village Cottage - Came out 2 months ago, 4th in the line of Winter Village sets, should be around another 2 years at least. This will be for sale online for 2 years and in the stores every holiday season until at least Christmas 2014.

Thanks, I didn't realize that "Sold Out" had different meanings on [email protected] Is this only the case with Holiday sets--it looks like everything else that is Sold Out is EOL. So I take it LEGO will produce more next year?

Penkid11

The Winter Village Cottage is only an exception in the sold out list, because of its very small availability window, yes. TLG is probably manufacturing more to meet demand, and is waiting until enough are manufactured to meet demand.

LegoFanTexas

Sold Out simply means they have sold out of all their current inventory and are not taking backorders right now.

The item is really gone when it is deleted from the web site completely. Many items have been marked as "sold out", only to return.

There is zero chance that WVC is gone for good, it will be around for several years.

WVB is the one that retired this year.

dragonhawk

Speaking of 2507, do we still think it is a good investment ? Even with Christmas rush, it is only selling for about $130 on eBay. Compare that with 9450 which can be easily sold for $160-$175

madforLEGO

^---Maybe I am wrong but are you basically explaining tax fraud?

FatMatt

^^I don't think this thread is intended to tell others how to circumnavigate federal laws. You and I are all obligated to taxing laws. Whether we like it or not, we live here, we pay taxes which are used to run our nation(that's another heated topic). Point is, "render unto Caesar".

doriansdad

^ We do it this way for a $40k cap. Also you don't need a second name, just a different SSN. I have not tried using a generated SSN with Paypal but it certainly does the trick for multiple Amazon Payments accounts for bonus whoring....it may be an option. I don't plan on going over $40k on ebay sales tho.

FatMatt

Legally we are required to pay taxes on any profit, whether 20K, 40K, or less.

chrisdojo

@ufjason
And now the IRS can find you easier having made that post.

Also, just because you don't hit the $20k/200 transactions, you're still supposed to report side income over ($550?).

#honesty

Pitfall69

Oh, for heaven's sake. I just got out of the "Why so much anger toward resellers..." and now this. I just want to know if the Death Star is EOL yet?

FatMatt

^Yes, buy as many as you can.

Pitfall69

^Thanks, I will buy from Amazon. That way I won't have to pay any sales tax.

chrisdojo

^^ LOL

^^^ #search this thread

gmpirate

Death Star is going EOL???

Pitfall69

^You heard it here first :)

FatMatt

I thought it was CONFIRMED that the DS is never going to retire.

LegoFanTexas

ufjason said:

I run an eBay storefront for the cost savings of having so many fixed price listings. Unfortunately I hit 20k in sales in August of this year and was right around 100 transactions. With 100 or so transactions to go I had to change my listing strategy.

So... You're a tax cheat?

Just making sure we all understand what's what..

Pitfall69

Drats!!! You sucked me in like a tractor beam.

LegoFanTexas

doriansdad said:

^ We do it this way for a $40k cap. Also you don't need a second name, just a different SSN. I have not tried using a generated SSN with Paypal but it certainly does the trick for multiple Amazon Payments accounts for bonus whoring....it may be an option. I don't plan on going over $40k on ebay sales tho.

So... You're a tax cheat?

Just making sure we all understand what's what..

LegoFanTexas

FatMatt said:

^^I don't think this thread is intended to tell others how to circumnavigate federal laws. You and I are all obligated to taxing laws. Whether we like it or not, we live here, we pay taxes which are used to run our nation(that's another heated topic). Point is, "render unto Caesar".

I don't like taxes as much as the next person, but I do like the police department, the roads, the sewer system, national defense, and a lot of other things.

Taxes buy civilization. There are places to go in the world you can avoid a lot of this, but you wouldn't want to live in most of them.

dragonhawk

DS is an excuse for grown men to play with a doll house

[duck and cover to avoid the impending flame throwing]

FatMatt

^Wrong, I just look at my shiny box and polish it occasionally. I'm thinking about getting one of those cool acrylic cases and getting it graded.

chrisdojo

dragonhawk said:

DS is an excuse for grown men to play with a doll house

[duck and cover to avoid the impending flame throwing]

I LOL'd... though I will be playing with 3315 Olivia's House when my daughter is a couple years older (she likes the treehouse alot)

Pitfall69

Ok. Now this thread has gone from suck to blow.

gmpirate

Actually, being that the boxes are extra sturdy, multiple DS's make good table bases to store other sets on.