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.  

seanheis1

Cash and local pickup only. I’ve had people drive hundreds and over 1000 miles to pickup the item, even when I had the original boxes.
When I have sold items overseas, there is no signature required option after it leaves the states, so I demanded that the money be sent to me and clears before I ship the product.
 I used to sell with F&F thinking it was safer/less hackable but it isn’t.

lalitk

I am curious, all those opposing F&F option, would you be willing to pay PayPal fee?

Probably, although the preference for F&F would be a red flag for me. But I may not be typical because I don't often buy used equipment.

Due to the amount of internet thievery, I will never purchase any item under the F&F option.  I see F&F and I immediately mistrust the transaction and/or the dealer.

 

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.