If you resell through eBay, you probably accept PayPal payments. But just because you have the eBay app doesn't mean you shouldn't also download the PayPal app. PayPal's app lets you track your PayPal account balance, which is helpful for resellers who want to ensure that they've been paid.
Because payments post to your PayPal account instantaneously, checking your PayPal account is a simple way to determine whether you've received payment for an item. The eBay app will alert you when a buyer makes a payment, but it's still a good idea to double-check your PayPal account to confirm that payments have posted before you ship items.
You can also use the PayPal app, as a reseller, to send payments to users (for example, if you want to offer a refund), request money (for example, if you want to do an off-eBay transaction), or find local businesses that accept PayPal payments. PayPal transactions are sometimes covered through seller and buyer protection, so you don't have to worry about foul play.
Even if you're just a casual reseller, eBay takes up to 9 percent of your total sales price, and PayPal takes another 3 to 4 percent. But if you're savvy, you can avoid these fees by selling in person and taking credit cards that use Square's mobile card reader and app.
Square is a credit card reader that attaches to your phone or tablet's headphone jack and works in conjunction with a free app for iOS and Android devices. To obtain a free Square card reader, you just sign up on Square's website. Square charges 2.75 percent per credit or debit card swipe (Visa, MasterCard, Discover, or American Express), so you can sell items offline while still accepting card payments. Use Square's card reader and app to sell items through Craigslist, at a garage sale or flea market, or to your next-door neighbor.
Smart resellers keep track of their inventory. This task is a little different from expense tracking, since you can't deduct the cost of unsold inventory at the end of the year.
A note-taking app such as Evernote is practical for inventory tracking. Evernote is especially helpful because it can sync notes, lists, and photos across multiple platforms, enabling you to access your notes from any device.
One way to keep track of inventory with Evernote is to snap photos of the front and back of all receipts connected with your inventory purchases. Doing so will help you keep track of how much you paid for each item (including tax, which should factor into your calculation of your final profit), when you purchased the item, and whether you can return the item if it doesn't sell.
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