Question about selling high price items using PayPal...
 

Getting ready to sell some used parts and have always used PayPal...

Possibly selling a targa top and other items that individually cost $2-4,000...have some of you used PayPal and how much of a cut do they take?

Is there a better way to sell higher priced items?

Researching as I write this but any input is welcomed!



Thanks,
Erik

I left PayPal years ago for Venmo. It has worked well for me, but I haven't sold any items quite as expensive as a Targa top, like you plan to do. Some of the vendors I do freelance gigs for pay me via the app (so far my invoices have ranged between $2 and $3k).

It is generally free to use, but some transactions will cost you. You can easily avoid the fees, as can your buyers (provided they are not using a CC linked to their account and have the funds available on the app). Plenty of info on the web, I'm sure you've already read some of what is out there.

Others will chime in as to what works best for them. Good luck.

Thank you!

Researching and have a feeling I may just settle with the buyer in regards to what fits our situation best. Researching more tonight so will start with Venmo and go from there...


Again, many thanks!


Erik

I don’t do PayPal (or similar) for anything over $500. I don’t like when a 3rd party payment system controls the transaction.

I like Zelle a lot. No fees to either party. They can’t take the money back afterwards. It’s direct bank-to-bank but you don’t have to disclose bank account details.

In my experience and opinion the key is to get to know the buyer a bit, if they’ve got a history here on pelican they are likely going to be easy to deal with. If your spidey senses go off for any reason, move on and find another buyer.

I recently reactivated my account after not using it much for a number of years now. Imagine my surprise when I tried to withdraw my money and pay pal told me I could only take out $500/mo because of my lack of activity. I applied for a variance, and they granted it, but what BS.

About a week later, someone posted to a trade group I’m in that they were having a similar problem. A bunch of people chimed in saying it has become a patterns with various excuses from pay pal why they hold the money. One shop said it had been their primary form of receiving payment. However in a couple month period they got in six figures of payments, but pay pal was holding more than $20,000 of it!!!! He was fighting it, but it had been over a month.

That should be illegal. They claim to provide a safe secure service. But now they can just lay clean to my money? No thanks. I’m done with pay pal. Not trustworthy.

I am with USAA and Zelle is an option, built in with membership. Looks like I will try and use that when I sell the targa top, etc. Hopefully the buyer has the same...

Agree about getting to know the buyer a bit...


Thanks!
Erik

We switched from Paypal to Square. Now I just send them a Square invoice and they pay by CC, I get paid instantly.
Paypal has gotten very weird.

---Adam

What about sale tax on the buyer's end?

What about income tax reported to IRS on the seller side?

How do you deal with it?

I have so many parts that I could sell, some of them very valuable. To me it's not worth the hassle. Between the 3rd party money management to taxes, shipping, angry buyer, fake buyer, scammer.

I'm more of a swap meet type of seller cash in hand. Sad thing is when I die everything is going to end up in a landfill.

I guess everyone here is running non profit organizations 501c4

Appears Paypal will issue a 1099K for Good & Services transactions (not friends and family) exceeding $600 threshold/ taxable year. Bad deal if you cannot show a cost basis

https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543

The rules with PayPal change all the time, and honestly it’s quite painful to be a seller these days.
As a buyer, you have the ability to claim for a variety of things including “not as described” which typically puts all the power in the buyers hands to take advantage of a situation quite easily.

I’ve most recently had a 3500$ set of wheels sold (under market value) claimed by the buyer as “not as described” before the package even arrived.. then they decided to quickly sell to someone else on Fb marketplace for 4000$. All while the claim was open. Paper trail for all of this including my communication with that second buyer (luckily I got hold of the person as they commented on the ad before it sold) handed all over to PayPal and in the end they still didn’t grant in my favor.. I told PayPal that my consistent business and fees to them (over 15 or so years)would halt entirely and I stopped using it that day.

Be careful out there with these companies. eBay the worst of them as it’s a black hole for solving issues like this.

That was revised back up to $5000, and they haven’t updated their terms. Not that it’s good regardless.

I've hand made and sold quite a few parts for Nissan S30's and several Italian oddballs (Pantera and others) over the years. Usually through forums. Some on Ebay. I used PayPal. 95% of the purchases made by folks through the forums were fine. I only got scammed twice selling through forums. The really odd ball parts for Italian cars was never an issue because that type of stuff doesn't attract scammers. The S30's (Datsun 240Z's) were where I had some issues with buyers. I got straight out scammed several times.

One item I sold through Ebay, the buyer wanted to return it. I agreed and when I got the package back, it was stuffed with sand in a ziploc bag. They did this so that it weighed the same as what it did when I shipped it. PayPal automatically sides with the purchaser if the shipping weight is the same on the returned package as it was when sent. They may have changed the rules now but I was out about $600.

I made a limited run of hand made, hand formed aluminum hoods, to replace the steel hood on S30's. These took a lot of time to make, required a lot of pre production work to be able to replicate the inner hood structure. All of it was hand formed and I made 10 of them. Average time in each was approximately 65 hours. It was more a labor of love than about making money. I priced them at $2200 plus shipping. Sold them all in approximately six months. The last two I listed on Ebay. The last one I sold, buyer wanted to return it. Said package had never been opened, etc. Against my better judgement I agreed. When I received it, I thought it sure feels heavy. (I shipped them in plywood boxes). Open it and surprise, there is a rusty steel S30 hood in there. I tell the buyer no way I'm returning your money. He opens a case with PayPal and flat out lies, tells them that is what I sent him. Even though it weighed a ton more on the return than when I shipped it. They refunded him the money. $2200. Made no sense. That hurt. And it convinced me never to use PayPal again. They always side with the buyer.

Thanks for the input. I have had great luck as a small seller and buyer on PayPal, but glad to read your take.


I usually just keep it in the forums or PM's when selling but want to treat high end items a little different. With a targa top potentially to sell and some Fuchs in the spring I am hoping to make contact with the buyers repeatedly and make sure I have everything documented here in forums, PM/DM's and emails (if possible).

Not nervous - to be honest - just really want items to go to good homes, honest people and just don't want to deal with the dumb sh/poop/it, these scammers are trying to pull.


Again, thanks for the heads up/post.


Erik