I just started. Tomorrow will mark two weeks into reselling. Just sold my 22nd item this morning. I agree with all of your points. The first thing I did, prior to even opening my eBay store, was set up an LLC and business account. Treat it like a business, and it will pay you like a business. I'm a former high school English teacher turned homeschooling momma. Thank you so much for your videos. By far, you're my favorite UA-cam reseller! *I Dream of Genie!*
Well thank you and congrats. Maybe I should have said if you are 100 percent certain this is the direction you want to go you should take these steps. I will say the answer llc does have some cost including yearly costs as well. But the mindset you have is going to make those costs seems insignificant
@@commonwealthflipperdoesn’t the fee only occur in certain states - I believe, for me, in Florida I won’t need to pay that fee. But, I also want to treat my reselling business this way by getting an LLC from the start. I’ve been accumulating inventory for years, and I didn’t exactly intentionally let it stock pile. I do think if I apply Chris’, from Daily Refinement, organization system I will have no chance for failure as I don’t care to break even on some of the things I own - I just want to clear it out in a new eBay shop that is for liquidation strictly. After that I want to funnel all profits into just good items, and create a store with relatively priced and high quality products. Thanks for all the content and inspiration!
What a start! Whatever your doing its good! Took me a few months of trial and error before i finally got consistent sales. May I ask your primary method of sourcing? Mine currently is a local amazon resale bin store
@@Steel.Canvas local thrift stores and clearing things out of my home. I also had a very nice friend give me some items she had planned to donate, nice clothing and antique books. But mostly just thrifting locally.
I started my LLC in September, My wife wanted to make sure if I was going to do this that we kept our joint personal finances separate from the business for 2 reasons, possible financial burden and/or someone taking us to court for some crazy reason. Its a work in progress and i'm trying a few things to see what I like best, but I watch videos like urs to get a feel of how I would like to do it. No one is perfect, no one knows 100% what's best for everyone but I appreciate videos like this because it gives help and support for new resellers like me and gives me a starting point. Thank You
When I first started reselling, I started with 20+ years of experience in Logistics and Management. So I started an Excel spreadsheet to record everything we bought, sold, and invested in the business (as well as a record of where we traveled and when) It was (is) a multi tab worksheet. We also keep all our receipts, but realize that we don’t have receipts for yard sales. As long as you can quantify your Cost of Goods Sold and other expenses (to include shipping and eBay expenses) via spreadsheet, it’s all good. I agree that having a separate bank account is a benefit, but haven’t grown to the point that we think that is necessary.
Absolutely. This is your channel with any advice or thoughts given from your personal experience. Please don’t waste too much time justifying yourself. Think of how much time you’ll have if you leave off answering to haters. Tons I bet. You do you!❤
I have a separate account. At this point I don’t pay myself a salary because we don’t need it for household expenses. I have a separate business account and right now I am reinvesting and allowing business money to grow. I have a point when the money in that account reaches a certain point I will start paying myself a salary. Love your videos. Keep up the good work. 😎
Your way would drive me nuts:-) lol:-) I was a nursing home nurse for many years. Started this "side hustle" 4 years ago. I'm good at setting up "systems", I'm told. I set up the electronic medical records system at work, a 369-bed facility, before I retired. I "see" systems in my head, I guess is what I'm saying. As soon as I decided I wanted to do some reselling on Ebay, just to keep my brain and disabled body busy, I created a spread sheet. I also keep a work book. Just a spiral notebook, the smaller one and I write every piece of inventory I want to sell, where, when, I assign the item a number and I put it on the shelf awaiting someone to buy it. Then I sit down to list and I've got the description, etc in the notebook and I can sit and list for a few hours because I'm not having to get up/down, which is painful, because I need a measurement or something. The spreadsheet comes into play when an item sells. I fill in the buyer's name, how much they paid ebay, how much they paid ebay for shipping, the tracking number, the item description, the "Lot number" and then once Ebay does their thing, I go to their financial page and I add in on my spreadsheet how much fee they took out per item and how much my final total profit on the item was. At the end of the month I do some adding, which is easy to do if you're using microsoft excel, and then I subtract what inventory cost me that past month. The remaining number is how much money I cleared. At the end of the year, it's easy to come up with just how much money you spent, how much you made, etc. And don't forget to add in any shipping materials if you buy them. See, in nursing we have to carry a little notebook in our pocket so we can get information told to us during medication pass or whatever, and at the end of our shift? We've got to go to every single chart and document every single vital sign, everything on each resident/patient where something was said to us during the shift. And it's the nursing documentation that "carries" the nursing care plan which is a federal form. The care plan is simple but has to have documentation in order to justify the information on the careplan. Careplan has the "Problem" "Goal" and then "Intervention". At some point the care plan team has to review the document and see if that intervention is working and if not, we gotta come up with a different intervention. If it DID work and the problem is resolved? Then we can close out that entry. It's kinda the same principal when I sell stuff. And I'm just selling stuff I buy online, jewelry mystery boxes and purse lots. Just something to keep me busy. I cleared Just over $1000. to supplement my social security last month. Small potatoes. Just in case there's someone like me though watching your channel I thought I'd share my method:-) If anyone would like more information please email me at carolj471@gmail.com:-)
“I think I spent a $1 on it, maybe spent 2…” says it all. I keep track of every item’s cost to get an accurate profit from each. That works for me. Keep up the good videos!
Long time reseller here. Definitely open a dedicated account. As far as inventory control and book keeping here’s how I have always managed it. It does take time. I keep 3 excel spreadsheets. 1) master inventory. In this one I record everything I purchase for resale. It has a column for date, item name, amount paid and amount sold. 2) current inventory. On this one I record every item I purchase (I copy and paste my entries as I make them in the master inventory). When I make a sale I record the sale in the master inventory and remove the item from the current inventory. This gives me the total value (cost of goods) of my inventory at any given time. 3) monthly sales record. On this one I record the sales for the current month with the cost of the item and sale amount. I sit down once a week and record all buys and sales for that week. My master is by date. Then I for my weekly sales I Add the sold amount to the master (this gives me a ton of info after years of selling!) and remove the item from the current inventory and include the cost of the item and the sales price in the monthly. For bulk purchases at estate sales and garage sales I just give each item a dollar value so the entire lot adds up to the amount paid for that lot. I’ll assign higher prices to more valuable items and continues just a $1 to the less valuable items. Sounds a lot more complicated than it is.
I'm brand new to reselling (like, only JUST going to my first estate sale tomorrow morning). I am trying to learn what to do to keep track of everything. How do you handle recording the fees that the platform takes from you (such as Ebay). If you record the items original cost to you, the amount it sold for, do you also include the fees and shipping costs associated with each item? Or do you put a different line item at the bottom of each month (as an example) with the total fees the platform took?
I keep a spreadsheet of all my purchases and they are all categorized. I know exactly what I paid for each item and the day I purchased them. I use the cash from selling items on Facebook to pay for purchased goods. That is what works for me. You give great advice and I believe that everyone needs to do what works best for them. Thanks for the videos
I have a full time self employed and sell on eBay no store no separate bank account and I write everything thing down on paper for both jobs and save every receipt very easy and works
100% Correct! Im on year 26 as full time reseller, I get a Check every week, Then once a quarter i get a bonus. Doing it this way Im able to make the same amount 52 weeks a year. If ebay has a bad week, theres plenty in there from the good weeks to still pay me. The light bill people dont care if ebay had a bad week, I need to get paid every week. My bonuses fluctuate on how good the business is doing. Also the business has money in account in case i come across a huge buy. If someone calls with a 10k buyout i can pull the trigger, Im not scurrying around trying to come up with the money. Great advice
Minor cash buys: for over 25 years now I make an entry in the same small notebook that doubles as my mileage log kept in each of my vehicles. I keep a Pocket size spiral notebook that I log my business mileage in. If I make a cash purchase for the business (thrift store, yard sale, roadside stop, I make an entry with the date, location and amount. I log the total for each stop, not the detailed specifics of what I purchased. These days, I make fewer log entries for cash buys because my methods of sourcing have changed, since more of my buys are done at stores and auctions with a credit card. In those cases I use the store or auction receipt to keep a record of the purchase. Some receipts are item specific, identifying auction lots, some are generic totals and I may hand write a note on the back to remind myself what they are for. It’s simple, but it has always worked for my small businesses record keeping.
Best advice you could ever give anyone reselling. Get a separate account for just your eBay business. It just makes running your business a lot easier. Been doing it 20+ years. Best decision I ever made.
Yah...I haven't figured this out yet. Selling 2 years now. This supplements Social Security. One bank account....after I pay the bills, whatever is left goes to buy more inventory. Don't make enough to get another acct yet.....can't see the point YET. Hopefully.......
Great video Kevin! I am in Virginia as well and restarted selling on eBay after a many year hiatus. I think an important thing is listing daily. I wasn't when I started back a few months ago. Once I listed daily, items that had been up for awhile started to sell. I believe there is an algorithm. Congratulations Reagan!!
I dream of genie! I have a separate bank account and have since I started a few years ago. I only sell on eBay currently. I started selling stuff around the house and then invested in myself $100. Yeah it wasn't a lot but we were not gonna put our finances in jeopardy. I figured everyone would have a separate account for their reselling. It makes things so much easier. I enjoy your channels and thanks for all the tips you have given.
I have been a casual seller on eBay since 1999. I always treated my PayPal account as my separate bank account. When eBay moved to their own payment processing in 2019 or 2020 I finally opened a separate bank account just for reselling. It is so much better than just using PayPal. I have a storage envelope where I keep all my eBay related receipts with the intention of entering them into a spreadsheet every month. Of course it never happens and come tax time I have a mess of receipts to go through. 😫 I definitely need something to easily track it all. I DREAM OF GENIE!
My tax guy suggested we open 3 business bank accounts: 1. Accounts Receivable (all eBay revenue goes here); 2. Accounts Payable (all business expenses are charged here); 3. taxes & dividends (monthly profits and capital investments goes here). We give the bank statements to our tax guy at the end of the year and he sorts it all out. I also have a spreadsheet going where I keep track of every item I buy (source, amount, date) and I add the sold prices and date when the item sells. Not necessary, but I’m a nerd and I want to keep track of my weekly sales, net profit, average $/item, etc.
Hi Kevin! I dream of Genie! You would crack up at all my spreadsheets LOL but apparently I am just a nerd! I do have a separate bank account, but still line item everything! I imagine if I were full time, I would rethink that though! Thanks for sharing your thoughts, I respect hearing what people who are making it happen are doing! Thank you also for sharing your views on debt, I love how you discourage it, and even get angry at it, in my opinion, that sets a great example, and I agree 100%! Liked and shared, thanks Kevin!!
I love my spreadsheets! It's one of the enjoyable parts of the job. If I get to feeling blah about more listing, I stop and do some bookkeeping for a bit, and I am still working, but it perks me up. Lol
I opened a separate checking account and use the cash in/cash out system. I also have a separate wallet to make sure everything personal/business is separated. I dream of Genie!
I’ve been reselling for 8 years as a hobby. I love the thrill of the hunt. I also am business minded so opened a separate bank account for my reselling business 5 years ago. It does help to keep track of things and keeping separate from my full-time job. But you are correct that you have to be careful to only use it for the business especially as you get bigger. And I like the idea of paying yourself a salary each month.
I use Google Sheets to keep track of all of my items. Each item gets a stock number and each item is categorized by tote letter/stock number and then I put that in the sku of each item on eBay(for example tote A, stock number 5 would be A5). I then categorize a row for each item starting with stock number, then title, then platforms listed on, then price paid, price listed for and lastly the price sold for and which platform I sold it on. With that said, I do love the idea of a separate bank account strictly for the business. I'm definitely going to do this. Thanks Kevin!
Yes Kevin, I agree with the separate bank account, I do have one, makes things easier, I do need to start paying myself, I have thought of it just haven't started. Keep up the good work! I dream of Genie
I Dream of Genie! The Back office and accounting set up is a challenge for me. I am so grateful that you had this video today. It can be challenging for me to find enough time for all aspects of reselling alone... I am a one women show 😂😂. My my books are what I am struggling with to get set up and organized. I would love to try a system that doesn't tax my brain so much 😅 Thank you!
It’s funny you mentioned that’s the first thing you should do because that’s exactly what I thought and what I did. There was no way I wanted to mix my reselling transactions in with our other bank accounts. 22:16 What a nightmare. I have an extremely small business but I still can’t imagine entwining it with other bank accounts. Best advice ever, Kevin.
I totally endorse the separate bank account & I even have a credit card that is only for the business. For transactions online. I pay it off at the end of each month. I also have ebay deposit my funds once a month. That made it so much easier for me to keep up with what I made that month. Have a great day Kevin I really enjoyed your videos. 😊
100% agree, separate bank account. We don’t pay ourselves with the business money. It’s been self sustaining so far and every year a big purchase was paid with the business so we haven’t really paid ourselves monthly, but prevented a purchase from hitting credit cards. First was our furnace went out, so the business paid for that last year, this year it’s a vehicle.
I opened a separate account at Ally Bank, no fees. Purchase at thrift stores using the debit card. Withdraw cash at ATM (Ally reimburses ATM fees) for yard sales / flea markets. Write on the ATM receipt the number and dollar value of purchases. Keep any extra cash in a separate envelope for additional cash purchases for the business. I did use a spreadsheet when I first started that kept track of everything. That became way too time intensive. My new way gives me everything I need to know my cost of goods sold and my profit. Much easier.
I dream of Genie 😊 thank you for sharing, I absolutely appreciate it. I do have to get better at keeping up with what I've spent to what I'm making, God willing my store grows and yes I do need to open up a business account because right now it's my personal account. Anyway thanks for all your tips I have started selling because of you and others well selling on Ebay ect. Have a great day 😁😊🙏
Cash method here as well, separate bank account but do not pay myself yet, my income from my 1099 independent courier pays me enough. And the best advice is find a method that works for you and stick with it. And a reminder for if you are a store subscriber, it’s time to use your ebay supply discount.
Yep, cash method all the way, all buys as COGS.. do the exact same thing....I do have a BS in accounting degree...as well as a separate checking account. GREAT advice
I love having a separate bank account for reselling. Because I don't depend on it because I have a day job, I like having once a month payouts. I have the checking account and 2 savings accounts within it and use the 50/30/20 principle to split it between personal payout, saving for taxes, and business reinvestment/spending. It's worked well for me. Overage in taxes account can be like a yearly bonus lol.
I agree completely agree about the separate account. However, I would make it an account at a credit union. Overall better customer service. We have our ebay funds go to a separate account and we use the profits for home repair. Regular working paychecks go to a different account that the wife uses to pay household bills.
I agree with you 110% on the separate bank account. Makes it so much easier. As for as a business account, I paid $35 for a sole proprietorship at my local city hall and then got a business bank account, which was free because I already had a personal account.
I have separate account. I have a budget and pay myself twice a month. I tried reseller genie before and you convinced me to try it again when you said it’s easier to use now.
I dream of genie. I have a separate checking account and a separate savings account. I move money between the 2 and my wife looks over them at the end of the year. I thrift more then I yard sale. So that makes tracking a little easier. We use that money for all kinds of stuff. But I'm really thinking about 2 things 1. Getting the basic ebay store and 2. Get a my reseller genie account to help my wife out as she goes through everything at the end of the year. Thank you for all you do.
I have always had a separate account. I am a Sole Proprietor and prior to Ebay I sold window treatments and art. So, when I started on Ebay it was just another item(s) that I sold. I no longer sell window treatments but still sell my art. I still use paper and pencil and spreadsheets of my own making. I hate bookkeeping but my sales are not so large that I need to learn an accounting program.
Yes I have a bank account dedicated to the reselling business. Once a business gets large enough it even makes sense to have a separate account for taxes, salaries, cost of goods, etc.
I opened a business account March 1 and let it grow all of March. April will be my first month taking an actual salary from my business account after doing this on the side for 3+ years now. Definitely been easier to separate as previously i had a dedicated personal savings account i would use for my reselling that I would move funds back and forth from. So now all in one with a separate debit card.
To add to that. Do you just track the total spent on inventory and the total sales? For example, today I spent $100 on inventory, so I’m marking $100 as inventory purchases, with no further detailing regarding the items? Do you then take the $ spent on inventory in that year, minus the $ in sales that year, and that is value of your unsold inventory for the year? And then you carry it over to the next year? Or no carry over? Thanks for your sharing your knowledge, Kevin. I understand you’re not an accountant, but would love to hear a bit further about the method you use. Thanks
Don’t have a set salary … we just take what we need each month. The rest is available for business use. It’s what works for us. (But yes definitely have a separate account !) And I’m hundred percent team cash method. I would drive myself nuts trying to account individually, especially in bulk buys. Just extra time and energy spent doing something I don’t necessarily need.
Totally agree! I started my eBay store last year and and money was going to my debit account which is also for my regular job account… So I never knew what is a total from the last year, so in January(1 or 2nd )this year I got separate accounts. I don’t make a lot of money ( because I have a regular job), but at least I know my numbers know.
“ I Dream of Genie”. My reseller Genie sounds amazing. I would love to try it. I do have a separate account for my eBay business. My store is Ms. Betty’s Attic Antiques. I am a 77 yr old retired teacher. My inventory so far is all the “stuff” I have accumulated through my life so far. As well as some true antiques that belonged to my Mother and Grandmother. I will have been a seller for two years in August and I love it. I watch your picker and flipper channels. Thank you for sharing.
Thank you for the info. A separate bank acct is a great idea. I do have a question. You had a couple antique mall booths. Did you keep inventory of the items you took there so you didn't "lose" them?
A couple of accounting notes 1. The accrual inventory method doesn't require you to track each individual item. At tax time you just need to know a) the value of your inventory at the beginning of the year, b) the cost of your purchases throughout the year and c) the value of your inventory at the end of the year and then you do a simple calculation :- (beginning + purchases) - end value = cost of goods sold. The end of year value does require you to look at your unsold & unlisted stuff and put a (cost) value on it. 2. I use the receipt book approach for garage sale purchases. I just write a receipt for each cash purchase. The advantage of this over pointing to a cash withdrawal on a bank statement is that it provides much more solid evidence of money spent. You could withdraw $500 from your business bank account and only use $100 on business purchases and $400 on non-business purchases. I wonder if an IRS auditor would be ok with your method. (I"m trying to be helpful, not critical BTW).
As Im sitting here last minute doing my taxes... I opened a separate bank account some years ago... but I need to sign up for my reseller genie. "I dream of Genie".
I’m at 2 years. Just got a label printer last fall. I still work full time so don’t pay myself a salary. I use a spreadsheet and accrued accounting. Paperwork is my zen!
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I am right there with that seperate bank account. We just started that for the month of March. It is hard to do because my income is fixed every month besides reselling. I am already seeing this benefit as well. We do the pages to see what our average price is per item and a log book for garage sales. As we grow this year our next step is the accountant to make sure everything is done right
I have a separate checking account for the business. Much easier to keep track of anything. I sell on average 140+ items a month doing this part-time. I'm not to the point where I pay myself out regularly yet, but as I continue to grow, I will be paying myself regularly.
I've said this before, I'm a self-employed hairstylist just starting reselling, get a separate bank account. We opened one for reselling the minute we decided to start and all business is ran through that account. Now did I with my hairstylists, no. I was young and dumb. Had to learn. Also open a credit card that gives you 5% back for your business.
If I was larger reseller, I would definitely have a separate bank account. But for what I do as a small supplement to my income I haven't found that it's necessary. I'm retired from accounting so Excel Spreadsheets are my best friend. I record everything I buy as soon as I get home from sourcing and also record all my sales, fees, etc as they come in. I have a monthly budget for my sourcing. The spreadsheets also help me to compare my figures to Ebay and so far it's been right on the penny. I keep a certain amount of my sales payout and the rest goes in my savings account for emergency. I resell to mainly help me pay for some higher priced medications I have to take and my insurance doesn't cover very well. Thanks to Ebay, I was able to replace my eye glasses this past month. If I was doing this as a bigger business, I would probably do it somewhat different but I think I would still have my spreadsheets.
I dream of Genie! My accounting is a mess lol. After just finishing up all my taxes last week (spent part of my spring break doing it) I need to overhaul everything. Getting a separate bank account is first on the list, then an accounting program to keep track of everything.
That's the first thing i did starting out. I got a separate bank/ebay account. For lil different reasons. I did it just in case sumthing happened i didnt want it too affect our main bank account. I just recently started a certin income number per. Month to reach And its helped 100%. It really makes ya buckle down. To reach that #. Thanks bud damen~
I do keep a detailed notebook, and when I list an item I write it down along with my cost and the listing price. This IS work, but it helps me visually see when I've made a bad buy along the way. I keep a separate book for each year (I've only been doing this for a year and a half). I did get a separate bank account, and I'm transferring profits when I reach a certain number over to a savings account for our oldest son's college next fall. This is definitely giving me a goal, and I'm amping up to hopefully double what I did last year when I was a newbie! Also CONGRATULATONS, Reagan!!
Kevin ok Having a #2 bank account you need cash to purchase stuff mostly So do you use two billfolds also Cause you already pulled cash not knowing how much you might need .????❤
The first thing I did before I sold one item was set up a separate account because I’m also receiving SSI payments. Everyday I spend any money reselling come I home and write it down or add the receipt to my monthly booklet. At the end of the year everything goes to my tax guy. 3 years later so far so good.
I know you probably answered this question and it doesn’t videos but I’m a new viewer and I am wondering how or where do you source things that you buy multiples of in bulk brand new?
I am missing the part of paying myself. I’m going to start doing that. Not paying myself habitually causes some sloppiness with my dedicated reselling account. Thank you this is a good prompt
I dont sell alot on ebay now sales are way down and shipping is way up :( but what I do is write a check from the ebay only account, put in a seperate zip pouch and that is my estate / church / yard sale $$...when its gone I can replenish but it helps me keep track of my cash sales like that
If you are buying like multiple or hundreds of like items at you know one time what you would do is the amount of items you bought divided into the amount of money you spent and that will give you your cost of goods per item
My best license plate I own is a 1982 Missouri plate number "636" which also happens to be my area code. I was going to register it to my early 80s truck (you can do that in Missouri) but someone else has the number still active.
My business has a credit card where everything I can put on it goes on it then a bank account that all business stuff comes out of it. I run shipping labels and supplies purchases through the credit card for the point it's paid off B4 interest every month. 2k a month is a lot of free points to pass on.
My accountant told me to get a separate bank account and I will soon. I’m OCD and LOVE making spreadsheets so I have no problem keeping track of what I paid for each item. 😂
I dream of Genie! Oh, how I dream of Genie. I have a separate bank account which I agree is the way to go. I've been slowly growing my ebay/mercari business over the last year and am getting to the point where the accrual method is taking up an insane amount of time. I need to look more into your method. I've been debating signing up with my reseller Genie. I have a lot of sales but they are low profit. It's been hard to be able to pay myself. I need to scale quickly with higher profit items.
I just started. Tomorrow will mark two weeks into reselling. Just sold my 22nd item this morning. I agree with all of your points. The first thing I did, prior to even opening my eBay store, was set up an LLC and business account. Treat it like a business, and it will pay you like a business. I'm a former high school English teacher turned homeschooling momma. Thank you so much for your videos. By far, you're my favorite UA-cam reseller! *I Dream of Genie!*
Well thank you and congrats. Maybe I should have said if you are 100 percent certain this is the direction you want to go you should take these steps. I will say the answer llc does have some cost including yearly costs as well. But the mindset you have is going to make those costs seems insignificant
@@commonwealthflipperdoesn’t the fee only occur in certain states - I believe, for me, in Florida I won’t need to pay that fee.
But, I also want to treat my reselling business this way by getting an LLC from the start.
I’ve been accumulating inventory for years, and I didn’t exactly intentionally let it stock pile.
I do think if I apply Chris’, from Daily Refinement, organization system I will have no chance for failure as I don’t care to break even on some of the things I own - I just want to clear it out in a new eBay shop that is for liquidation strictly.
After that I want to funnel all profits into just good items, and create a store with relatively priced and high quality products.
Thanks for all the content and inspiration!
What a start! Whatever your doing its good! Took me a few months of trial and error before i finally got consistent sales. May I ask your primary method of sourcing? Mine currently is a local amazon resale bin store
@@Steel.Canvas local thrift stores and clearing things out of my home. I also had a very nice friend give me some items she had planned to donate, nice clothing and antique books. But mostly just thrifting locally.
@@KatjeTriplett Nice! Well congrats! You’ll have that top rated seller badge in no time!!
I started my LLC in September, My wife wanted to make sure if I was going to do this that we kept our joint personal finances separate from the business for 2 reasons, possible financial burden and/or someone taking us to court for some crazy reason. Its a work in progress and i'm trying a few things to see what I like best, but I watch videos like urs to get a feel of how I would like to do it. No one is perfect, no one knows 100% what's best for everyone but I appreciate videos like this because it gives help and support for new resellers like me and gives me a starting point. Thank You
When I first started reselling, I started with 20+ years of experience in Logistics and Management. So I started an Excel spreadsheet to record everything we bought, sold, and invested in the business (as well as a record of where we traveled and when) It was (is) a multi tab worksheet. We also keep all our receipts, but realize that we don’t have receipts for yard sales. As long as you can quantify your Cost of Goods Sold and other expenses (to include shipping and eBay expenses) via spreadsheet, it’s all good. I agree that having a separate bank account is a benefit, but haven’t grown to the point that we think that is necessary.
Same, my husband & I have a multitab excel sheet we created to track everything.
Great advice, Kevin! Please stop worrying about what other people think and how mad they might get.. Your input is necessary and appreciated.
Absolutely. This is your channel with any advice or thoughts given from your personal experience. Please don’t waste too much time justifying yourself. Think of how much time you’ll have if you leave off answering to haters. Tons I bet. You do you!❤
I have a separate account. At this point I don’t pay myself a salary because we don’t need it for household expenses. I have a separate business account and right now I am reinvesting and allowing business money to grow. I have a point when the money in that account reaches a certain point I will start paying myself a salary. Love your videos. Keep up the good work. 😎
Straight grindin💪
Your way would drive me nuts:-) lol:-) I was a nursing home nurse for many years. Started this "side hustle" 4 years ago. I'm good at setting up "systems", I'm told. I set up the electronic medical records system at work, a 369-bed facility, before I retired. I "see" systems in my head, I guess is what I'm saying. As soon as I decided I wanted to do some reselling on Ebay, just to keep my brain and disabled body busy, I created a spread sheet. I also keep a work book. Just a spiral notebook, the smaller one and I write every piece of inventory I want to sell, where, when, I assign the item a number and I put it on the shelf awaiting someone to buy it. Then I sit down to list and I've got the description, etc in the notebook and I can sit and list for a few hours because I'm not having to get up/down, which is painful, because I need a measurement or something. The spreadsheet comes into play when an item sells. I fill in the buyer's name, how much they paid ebay, how much they paid ebay for shipping, the tracking number, the item description, the "Lot number" and then once Ebay does their thing, I go to their financial page and I add in on my spreadsheet how much fee they took out per item and how much my final total profit on the item was. At the end of the month I do some adding, which is easy to do if you're using microsoft excel, and then I subtract what inventory cost me that past month. The remaining number is how much money I cleared. At the end of the year, it's easy to come up with just how much money you spent, how much you made, etc. And don't forget to add in any shipping materials if you buy them. See, in nursing we have to carry a little notebook in our pocket so we can get information told to us during medication pass or whatever, and at the end of our shift? We've got to go to every single chart and document every single vital sign, everything on each resident/patient where something was said to us during the shift. And it's the nursing documentation that "carries" the nursing care plan which is a federal form. The care plan is simple but has to have documentation in order to justify the information on the careplan. Careplan has the "Problem" "Goal" and then "Intervention". At some point the care plan team has to review the document and see if that intervention is working and if not, we gotta come up with a different intervention. If it DID work and the problem is resolved? Then we can close out that entry. It's kinda the same principal when I sell stuff. And I'm just selling stuff I buy online, jewelry mystery boxes and purse lots. Just something to keep me busy. I cleared Just over $1000. to supplement my social security last month. Small potatoes. Just in case there's someone like me though watching your channel I thought I'd share my method:-) If anyone would like more information please email me at carolj471@gmail.com:-)
Thank you for sharing I appreciate it 🙏 ❤😊
Thanks for the information. I just may reach out however I have zero spreadsheet literacy. 😂
“I think I spent a $1 on it, maybe spent 2…” says it all. I keep track of every item’s cost to get an accurate profit from each. That works for me. Keep up the good videos!
Long time reseller here. Definitely open a dedicated account. As far as inventory control and book keeping here’s how I have always managed it. It does take time.
I keep 3 excel spreadsheets.
1) master inventory.
In this one I record everything I purchase for resale.
It has a column for date, item name, amount paid and amount sold.
2) current inventory.
On this one I record every item I purchase (I copy and paste my entries as I make them in the master inventory). When I make a sale I record the sale in the master inventory and remove the item from the current inventory. This gives me the total value (cost of goods) of my inventory at any given time.
3) monthly sales record.
On this one I record the sales for the current month with the cost of the item and sale amount.
I sit down once a week and record all buys and sales for that week. My master is by date. Then I for my weekly sales I Add the sold amount to the master (this gives me a ton of info after years of selling!) and remove the item from the current inventory and include the cost of the item and the sales price in the monthly.
For bulk purchases at estate sales and garage sales I just give each item a dollar value so the entire lot adds up to the amount paid for that lot. I’ll assign higher prices to more valuable items and continues just a $1 to the less valuable items.
Sounds a lot more complicated than it is.
Not complicated to me. I do the exact same thing! 😊
I'm brand new to reselling (like, only JUST going to my first estate sale tomorrow morning). I am trying to learn what to do to keep track of everything. How do you handle recording the fees that the platform takes from you (such as Ebay). If you record the items original cost to you, the amount it sold for, do you also include the fees and shipping costs associated with each item? Or do you put a different line item at the bottom of each month (as an example) with the total fees the platform took?
Excellent advice Kevin thanks!! Your children are so cute, polite, and helpful btw😊
100% agree with your first point. I can't believe I waited as long as I did to take that step for my business. Do it yesterday!
I keep a spreadsheet of all my purchases and they are all categorized. I know exactly what I paid for each item and the day I purchased them. I use the cash from selling items on Facebook to pay for purchased goods. That is what works for me. You give great advice and I believe that everyone needs to do what works best for them. Thanks for the videos
Yes, I opened a checking account first thing from my household checking. Great video - thanks for sharing.
I have a full time self employed and sell on eBay no store no separate bank account and I write everything thing down on paper for both jobs and save every receipt very easy and works
100% Correct! Im on year 26 as full time reseller, I get a Check every week, Then once a quarter i get a bonus. Doing it this way Im able to make the same amount 52 weeks a year. If ebay has a bad week, theres plenty in there from the good weeks to still pay me. The light bill people dont care if ebay had a bad week, I need to get paid every week. My bonuses fluctuate on how good the business is doing. Also the business has money in account in case i come across a huge buy. If someone calls with a 10k buyout i can pull the trigger, Im not scurrying around trying to come up with the money. Great advice
I dream of Jeanie! I opened my eBay store yesterday as an LLC and got my EIN. Getting bank account next week.
Minor cash buys: for over 25 years now I make an entry in the same small notebook that doubles as my mileage log kept in each of my vehicles. I keep a Pocket size spiral notebook that I log my business mileage in. If I make a cash purchase for the business (thrift store, yard sale, roadside stop, I make an entry with the date, location and amount. I log the total for each stop, not the detailed specifics of what I purchased.
These days, I make fewer log entries for cash buys because my methods of sourcing have changed, since more of my buys are done at stores and auctions with a credit card. In those cases I use the store or auction receipt to keep a record of the purchase. Some receipts are item specific, identifying auction lots, some are generic totals and I may hand write a note on the back to remind myself what they are for. It’s simple, but it has always worked for my small businesses record keeping.
Best advice you could ever give anyone reselling. Get a separate account for just your eBay business. It just makes running your business a lot easier. Been doing it 20+ years. Best decision I ever made.
Great video Kevin.
1000% agree with you on separate bank account!
Much easier to keep track on finances!
Yah...I haven't figured this out yet. Selling 2 years now. This supplements Social Security. One bank account....after I pay the bills, whatever is left goes to buy more inventory. Don't make enough to get another acct yet.....can't see the point YET. Hopefully.......
Great video Kevin! I am in Virginia as well and restarted selling on eBay after a many year hiatus. I think an important thing is listing daily. I wasn't when I started back a few months ago. Once I listed daily, items that had been up for awhile started to sell. I believe there is an algorithm.
Congratulations Reagan!!
I use a spreedsheet and keep track of all my expenses. I also have a separate checking account that I deposit all the funds I receive from reselling.
I dream of genie! I have a separate bank account and have since I started a few years ago. I only sell on eBay currently. I started selling stuff around the house and then invested in myself $100. Yeah it wasn't a lot but we were not gonna put our finances in jeopardy. I figured everyone would have a separate account for their reselling. It makes things so much easier. I enjoy your channels and thanks for all the tips you have given.
I have been a casual seller on eBay since 1999. I always treated my PayPal account as my separate bank account. When eBay moved to their own payment processing in 2019 or 2020 I finally opened a separate bank account just for reselling. It is so much better than just using PayPal. I have a storage envelope where I keep all my eBay related receipts with the intention of entering them into a spreadsheet every month. Of course it never happens and come tax time I have a mess of receipts to go through. 😫 I definitely need something to easily track it all. I DREAM OF GENIE!
My tax guy suggested we open 3 business bank accounts: 1. Accounts Receivable (all eBay revenue goes here); 2. Accounts Payable (all business expenses are charged here); 3. taxes & dividends (monthly profits and capital investments goes here). We give the bank statements to our tax guy at the end of the year and he sorts it all out.
I also have a spreadsheet going where I keep track of every item I buy (source, amount, date) and I add the sold prices and date when the item sells. Not necessary, but I’m a nerd and I want to keep track of my weekly sales, net profit, average $/item, etc.
Hi Kevin! I dream of Genie! You would crack up at all my spreadsheets LOL but apparently I am just a nerd! I do have a separate bank account, but still line item everything! I imagine if I were full time, I would rethink that though! Thanks for sharing your thoughts, I respect hearing what people who are making it happen are doing! Thank you also for sharing your views on debt, I love how you discourage it, and even get angry at it, in my opinion, that sets a great example, and I agree 100%! Liked and shared, thanks Kevin!!
I love my spreadsheets! It's one of the enjoyable parts of the job. If I get to feeling blah about more listing, I stop and do some bookkeeping for a bit, and I am still working, but it perks me up. Lol
I am a part time reseller following retirement. I had an LLC and Bank account in place before I started. I also pay myself monthly. I dream of Genie!
I opened a separate checking account and use the cash in/cash out system. I also have a separate wallet to make sure everything personal/business is separated. I dream of Genie!
ayeee 311 Transistor Cool! Those boys have been around for a long time and still doing their thing. Reggae/Ska/Rock Good Stuff.
I’ve been reselling for 8 years as a hobby. I love the thrill of the hunt. I also am business minded so opened a separate bank account for my reselling business 5 years ago. It does help to keep track of things and keeping separate from my full-time job.
But you are correct that you have to be careful to only use it for the business especially as you get bigger.
And I like the idea of paying yourself a salary each month.
I second that separate bank account! Absolute must! ❤ And of course, I dream of Genie! Thanks, Kevin!
I dreamed of Jeannie ..!! Love your show. Bless your family!
I use Google Sheets to keep track of all of my items. Each item gets a stock number and each item is categorized by tote letter/stock number and then I put that in the sku of each item on eBay(for example tote A, stock number 5 would be A5). I then categorize a row for each item starting with stock number, then title, then platforms listed on, then price paid, price listed for and lastly the price sold for and which platform I sold it on.
With that said, I do love the idea of a separate bank account strictly for the business. I'm definitely going to do this. Thanks Kevin!
Completely agree. Started reselling 12/27/23 and opened a separate account 6 weeks in.
Yes Kevin, I agree with the separate bank account, I do have one, makes things easier, I do need to start paying myself, I have thought of it just haven't started. Keep up the good work! I dream of Genie
Love the videos Kevin, thank you! I have learned so many tips and tricks through you and very much appreciate it! I dream of Jeannie and reselling ;)
I Dream of Genie!
The Back office and accounting set up is a challenge for me. I am so grateful that you had this video today. It can be challenging for me to find enough time for all aspects of reselling alone... I am a one women show 😂😂. My my books are what I am struggling with to get set up and organized. I would love to try a system that doesn't tax my brain so much 😅
Thank you!
It’s funny you mentioned that’s the first thing you should do because that’s exactly what I thought and what I did. There was no way I wanted to mix my reselling transactions in with our other bank accounts. 22:16 What a nightmare. I have an extremely small business but I still can’t imagine entwining it with other bank accounts. Best advice ever, Kevin.
I have a zebra printer but I didn't get it for a long time. The qr codes are great. Always good to hear your thoughts ❤❤❤ thank you 🎉
I totally endorse the separate bank account & I even have a credit card that is only for the business. For transactions online. I pay it off at the end of each month. I also have ebay deposit my funds once a month. That made it so much easier for me to keep up with what I made that month. Have a great day Kevin I really enjoyed your videos. 😊
100% agree, separate bank account. We don’t pay ourselves with the business money. It’s been self sustaining so far and every year a big purchase was paid with the business so we haven’t really paid ourselves monthly, but prevented a purchase from hitting credit cards. First was our furnace went out, so the business paid for that last year, this year it’s a vehicle.
Love the White Lion t-shit! Saw them in concert in Salisbury Maryland 1989. White Lion, Vixen, and Ozzy Osbourne. What a time to be alive!
Congrats, Reagan! 🎉
I opened a separate account at Ally Bank, no fees. Purchase at thrift stores using the debit card. Withdraw cash at ATM (Ally reimburses ATM fees) for yard sales / flea markets. Write on the ATM receipt the number and dollar value of purchases. Keep any extra cash in a separate envelope for additional cash purchases for the business.
I did use a spreadsheet when I first started that kept track of everything. That became way too time intensive.
My new way gives me everything I need to know my cost of goods sold and my profit. Much easier.
I love every video you put out Kevin! You give such Amazing Inspiration. I need to check on my auction it’s not showing up in my eBay account
I dream of Genie 😊 thank you for sharing, I absolutely appreciate it. I do have to get better at keeping up with what I've spent to what I'm making, God willing my store grows and yes I do need to open up a business account because right now it's my personal account. Anyway thanks for all your tips I have started selling because of you and others well selling on Ebay ect. Have a great day 😁😊🙏
Just wanted you to know , I saw this morning to subscribe. So I have been following you a long time. So I had to resubscribe
I dream of Genie! Thanks for all the great advice!
Cash method here as well, separate bank account but do not pay myself yet, my income from my 1099 independent courier pays me enough. And the best advice is find a method that works for you and stick with it. And a reminder for if you are a store subscriber, it’s time to use your ebay supply discount.
Yep, cash method all the way, all buys as COGS.. do the exact same thing....I do have a BS in accounting degree...as well as a separate checking account. GREAT advice
I love having a separate bank account for reselling. Because I don't depend on it because I have a day job, I like having once a month payouts. I have the checking account and 2 savings accounts within it and use the 50/30/20 principle to split it between personal payout, saving for taxes, and business reinvestment/spending. It's worked well for me. Overage in taxes account can be like a yearly bonus lol.
I agree completely agree about the separate account. However, I would make it an account at a credit union. Overall better customer service. We have our ebay funds go to a separate account and we use the profits for home repair. Regular working paychecks go to a different account that the wife uses to pay household bills.
I agree with you 110% on the separate bank account. Makes it so much easier. As for as a business account, I paid $35 for a sole proprietorship at my local city hall and then got a business bank account, which was free because I already had a personal account.
I have separate account. I have a budget and pay myself twice a month. I tried reseller genie before and you convinced me to try it again when you said it’s easier to use now.
I dream of genie. I have a separate checking account and a separate savings account. I move money between the 2 and my wife looks over them at the end of the year. I thrift more then I yard sale. So that makes tracking a little easier. We use that money for all kinds of stuff. But I'm really thinking about 2 things 1. Getting the basic ebay store and 2. Get a my reseller genie account to help my wife out as she goes through everything at the end of the year. Thank you for all you do.
I have always had a separate account. I am a Sole Proprietor and prior to Ebay I sold window treatments and art. So, when I started on Ebay it was just another item(s) that I sold. I no longer sell window treatments but still sell my art. I still use paper and pencil and spreadsheets of my own making. I hate bookkeeping but my sales are not so large that I need to learn an accounting program.
I dreamed of Jeannie ..!! Love your show.
Yes I have a bank account dedicated to the reselling business. Once a business gets large enough it even makes sense to have a separate account for taxes, salaries, cost of goods, etc.
Agreed. Savings account for those taxes
I opened a business account March 1 and let it grow all of March. April will be my first month taking an actual salary from my business account after doing this on the side for 3+ years now. Definitely been easier to separate as previously i had a dedicated personal savings account i would use for my reselling that I would move funds back and forth from. So now all in one with a separate debit card.
To add to that. Do you just track the total spent on inventory and the total sales? For example, today I spent $100 on inventory, so I’m marking $100 as inventory purchases, with no further detailing regarding the items? Do you then take the $ spent on inventory in that year, minus the $ in sales that year, and that is value of your unsold inventory for the year? And then you carry it over to the next year? Or no carry over? Thanks for your sharing your knowledge, Kevin. I understand you’re not an accountant, but would love to hear a bit further about the method you use. Thanks
Don’t have a set salary … we just take what we need each month. The rest is available for business use. It’s what works for us. (But yes definitely have a separate account !)
And I’m hundred percent team cash method. I would drive myself nuts trying to account individually, especially in bulk buys. Just extra time and energy spent doing something I don’t necessarily need.
Totally agree! I started my eBay store last year and and money was going to my debit account which is also for my regular job account… So I never knew what is a total from the last year, so in January(1 or 2nd )this year I got separate accounts. I don’t make a lot of money ( because I have a regular job), but at least I know my numbers know.
“ I Dream of Genie”. My reseller Genie sounds amazing. I would love to try it. I do have a separate account for my eBay business. My store is Ms. Betty’s Attic Antiques. I am a 77 yr old retired teacher. My inventory so far is all the “stuff” I have accumulated through my life so far. As well as some true antiques that belonged to my Mother and Grandmother. I will have been a seller for two years in August and I love it. I watch your picker and flipper channels. Thank you for sharing.
I dream of genie - great advice as always
Thank you for the info. A separate bank acct is a great idea. I do have a question. You had a couple antique mall booths. Did you keep inventory of the items you took there so you didn't "lose" them?
My questions are these: Did you start a corp? Did you open a business account or personal account for the separate account? Thanks!!
A couple of accounting notes 1. The accrual inventory method doesn't require you to track each individual item. At tax time you just need to know a) the value of your inventory at the beginning of the year, b) the cost of your purchases throughout the year and c) the value of your inventory at the end of the year and then you do a simple calculation :- (beginning + purchases) - end value = cost of goods sold. The end of year value does require you to look at your unsold & unlisted stuff and put a (cost) value on it. 2. I use the receipt book approach for garage sale purchases. I just write a receipt for each cash purchase. The advantage of this over pointing to a cash withdrawal on a bank statement is that it provides much more solid evidence of money spent. You could withdraw $500 from your business bank account and only use $100 on business purchases and $400 on non-business purchases. I wonder if an IRS auditor would be ok with your method. (I"m trying to be helpful, not critical BTW).
As Im sitting here last minute doing my taxes... I opened a separate bank account some years ago... but I need to sign up for my reseller genie. "I dream of Genie".
I’m at 2 years. Just got a label printer last fall. I still work full time so don’t pay myself a salary. I use a spreadsheet and accrued accounting. Paperwork is my zen!
White Lion was a Danish-American pop-rock band that was formed in New York City in 1983 by Danish vocalist/guitarist Mike Tramp and Italian-American guitarist Vito Bratta.
I am right there with that seperate bank account. We just started that for the month of March. It is hard to do because my income is fixed every month besides reselling. I am already seeing this benefit as well. We do the pages to see what our average price is per item and a log book for garage sales. As we grow this year our next step is the accountant to make sure everything is done right
I have a separate checking account for the business. Much easier to keep track of anything. I sell on average 140+ items a month doing this part-time. I'm not to the point where I pay myself out regularly yet, but as I continue to grow, I will be paying myself regularly.
I've said this before, I'm a self-employed hairstylist just starting reselling, get a separate bank account. We opened one for reselling the minute we decided to start and all business is ran through that account. Now did I with my hairstylists, no. I was young and dumb. Had to learn. Also open a credit card that gives you 5% back for your business.
If I was larger reseller, I would definitely have a separate bank account. But for what I do as a small supplement to my income I haven't found that it's necessary. I'm retired from accounting so Excel Spreadsheets are my best friend. I record everything I buy as soon as I get home from sourcing and also record all my sales, fees, etc as they come in. I have a monthly budget for my sourcing. The spreadsheets also help me to compare my figures to Ebay and so far it's been right on the penny. I keep a certain amount of my sales payout and the rest goes in my savings account for emergency. I resell to mainly help me pay for some higher priced medications I have to take and my insurance doesn't cover very well. Thanks to Ebay, I was able to replace my eye glasses this past month. If I was doing this as a bigger business, I would probably do it somewhat different but I think I would still have my spreadsheets.
The separate account was a tough decision, but has been a good choice for me.
I dream of Genie! My accounting is a mess lol. After just finishing up all my taxes last week (spent part of my spring break doing it) I need to overhaul everything. Getting a separate bank account is first on the list, then an accounting program to keep track of everything.
Great Advice !! ... Curious how much do you pay yourself?? is it a percentage of what you cashflow? or is it a set amount??
That's the first thing i did starting out. I got a separate bank/ebay account. For lil different reasons. I did it just in case sumthing happened i didnt want it too affect our main bank account. I just recently started a certin income number per. Month to reach And its helped 100%. It really makes ya buckle down. To reach that #.
Thanks bud
damen~
I do keep a detailed notebook, and when I list an item I write it down along with my cost and the listing price. This IS work, but it helps me visually see when I've made a bad buy along the way. I keep a separate book for each year (I've only been doing this for a year and a half). I did get a separate bank account, and I'm transferring profits when I reach a certain number over to a savings account for our oldest son's college next fall. This is definitely giving me a goal, and I'm amping up to hopefully double what I did last year when I was a newbie!
Also CONGRATULATONS, Reagan!!
Reggae seems to sell very well, and at good prices. If you ever find a 311 Transistor vinyl record, you're looking at hundreds of $$.
Kevin ok Having a #2 bank account you need cash to purchase stuff mostly So do you use two billfolds also Cause you already pulled cash not knowing how much you might need .????❤
I agree with the separate business bank account. Usually small business is cash basis.
I have a separate account, but I don't pay myself a set amount. Thanks for all the great info. all the time 😊
The first thing I did before I sold one item was set up a separate account because I’m also receiving SSI payments. Everyday I spend any money reselling come I home and write it down or add the receipt to my monthly booklet. At the end of the year everything goes to my tax guy. 3 years later so far so good.
I know you probably answered this question and it doesn’t videos but I’m a new viewer and I am wondering how or where do you source things that you buy multiples of in bulk brand new?
I am missing the part of paying myself. I’m going to start doing that. Not paying myself habitually causes some sloppiness with my dedicated reselling account. Thank you this is a good prompt
I dream of genie. Thanks for the great info
your friend was right . i didn't even know you had a picking or sourcing channel. interesting... i will check it out !
I dream of Genie. Love the great info.
People can take what works for them from every single video you make!! Carry on! 😃
I dont sell alot on ebay now sales are way down and shipping is way up :( but what I do is write a check from the ebay only account, put in a seperate zip pouch and that is my estate / church / yard sale $$...when its gone I can replenish but it helps me keep track of my cash sales like that
Thank you for this really good video!
If you are buying like multiple or hundreds of like items at you know one time what you would do is the amount of items you bought divided into the amount of money you spent and that will give you your cost of goods per item
My best license plate I own is a 1982 Missouri plate number "636" which also happens to be my area code. I was going to register it to my early 80s truck (you can do that in Missouri) but someone else has the number still active.
Great advice, thank you! I dream of Jeanie
My business has a credit card where everything I can put on it goes on it then a bank account that all business stuff comes out of it. I run shipping labels and supplies purchases through the credit card for the point it's paid off B4 interest every month. 2k a month is a lot of free points to pass on.
I dream of genie! I would love to try! Yes separate bank account is very important.
how do you deal with amazon/bonanza/other platforms when my reseller genie only does ebay & poshmark?
My accountant told me to get a separate bank account and I will soon. I’m OCD and LOVE making spreadsheets so I have no problem keeping track of what I paid for each item. 😂
I dream of Genie! Oh, how I dream of Genie. I have a separate bank account which I agree is the way to go. I've been slowly growing my ebay/mercari business over the last year and am getting to the point where the accrual method is taking up an insane amount of time. I need to look more into your method. I've been debating signing up with my reseller Genie. I have a lot of sales but they are low profit. It's been hard to be able to pay myself. I need to scale quickly with higher profit items.
The cash method for me works great and makes it easier to keep track of my expenses.
Great Advice! Find the method that works for you and be consistent in using that method. Will work and be successful every time! Love your channel!