PayPal Friends & Family listings. Why is this becoming so common?
I think most sellers now realize they are not going to have a taxable profit.
The F&F listings at market price don't seem to sell.
It seems like buyers demand around a 20% discount to take on the added risk of F&F.
I'm really just curious to hear what buyers & sellers think of this practice.
I use F&F with sellers that I have had 1 or 2 successful regular transactions. As for selling and the 1099 the obvious problem is proving what you paid for the item. New stuff I might have a receipt but who keeps that stuff beyond the normal non-business record keeping requirements? I keep 7 years just in case the IRS tries to claim fraud in my return. No records of what I bought on eBay beyond what eBay allows me to see. |
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When I buy using F&F I have a phone conversation with the seller, ask for additional pictures to be texted to my cell, check feedback and research the seller including what they do for a living, their LinkedIn profile etc. I also do not sell to buyers with 0 feedback using G&S due to possibility of fraud and chargebacks. And I do not buy from sellers with 0 feedback. I never had a problem. If I do not trust the sellers I either request to use PayPal G&S or don’t buy from them. I have bought and sold a ton on AG and USAM using F&F without issues. |
@lalitk BTW, PayPal protection is worthless! I never relied on them to do right by seller or buyer. Maybe this is true sometimes. I sold an LP on Discogs.com, and the buyer returned a different copy as if it were the one I sold him. I marshalled all the photographic and messaging evidence I could, and PayPal supported me in the dispute. |
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