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Discogs Charging US Sales Tax, Beginning July 1st


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18 minutes ago, unknown pleasures said:

So I got some Discogs email today about UK/EU taxes but can’t be bothered to read the whole thing.

 

If I’m in the US, is it anything I should be aware about?

Nah, just like how US buyers get charged sales tax, if you're selling something to the UK or EU they'll get charged VAT. It'll be done automatically so nothing to do on your end, but does mean you might see a drop in UK/EU sales as they'll be charged 20% more.

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8 minutes ago, HeartSwells said:

Nah, just like how US buyers get charged sales tax, if you're selling something to the UK or EU they'll get charged VAT. It'll be done automatically so nothing to do on your end, but does mean you might see a drop in UK/EU sales as they'll be charged 20% more.

Thanks! That’s what I guessed, I was just a little confused because I thought I’d seen international sales in the past charged a tax, but maybe it was outside of UK/EU.

 

The Beatles sure had it right when they wrote Taxman!

Edited by unknown pleasures
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  • 6 months later...

Discogs charges a sales commission of 8% of the final price. Sales fees are stated in the seller's currency. As far as I know, the minimum and maximum fees depend on the specific currency. In determining the appropriate amount, they were guided by the fees in US dollars (minimum - $0.10, maximum - $150). Sales will need to be made in the primary currency of your PayPal account. By the way, I only recently noticed that the Currency in Discogs is already selected based on PayPal settings. I will now be able to pay with a credit or debit card. And finally, I will be able to generate pay stubs free...

Edited by Gulliverus
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  • 1 year later...
40 minutes ago, dnl said:

Have they provided any explanation on why shipping will be have a fee applied? I'm not understanding how they justify that.

It's in line with what ebay and most other similar places do.  It's so you don't just price your items low, and then mark your shipping way up.

But yeah even with a 1% increase in fees, still lower than ebay with the added benefit of being able to list anything with no listing fee.

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We can thank our boy Lloyd for this update, I’m sure.  President and COO of VMP; he became VP of Discogs effective this morning.  I do think VMP’s quality has improved the last year or so, but their pricing has needed to fuck off for a while now.  Glad to see he’s wasting no time nudging Discogs in that direction as well.

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7 hours ago, dnl said:

Have they provided any explanation on why shipping will be have a fee applied? I'm not understanding how they justify that.

It's because people thought they were smart pricing their items super cheap with the savings added into the shipping price. Like for a normal $20 LP with $5 shipping they'd charge $5 with $20 shipping.

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2 hours ago, Derek™ said:

We can thank our boy Lloyd for this update, I’m sure.  President and COO of VMP; he became VP of Discogs effective this morning.  I do think VMP’s quality has improved the last year or so, but their pricing has needed to fuck off for a while now.  Glad to see he’s wasting no time nudging Discogs in that direction as well.

Lloyd for President 🇺🇸 

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9 hours ago, dnl said:

Have they provided any explanation on why shipping will be have a fee applied? I'm not understanding how they justify that.

For me this is as much unjustifable as putting sales tax on shipping charges. What the hell my country has to do with the shipping cost I paid for usps. This is pathetic. And the fact that sales tax here is 27% I am about 65-70 bucks shipped a record now, started at 20-25 back in the day...

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On 5/2/2023 at 12:59 AM, Shelby said:

It's because people thought they were smart pricing their items super cheap with the savings added into the shipping price. Like for a normal $20 LP with $5 shipping they'd charge $5 with $20 shipping.

I hear people say this so I am sure it does happens,  but I buy a lot of records on discogs and rarely ever see examples of this, at least domestically.  I used to see it a ton on Ebay 15+ years ago before they changed their policies. So to me it is greed more than anything else as it does not seem to be a widespread issue that should be used for the justification of this.

 

They can say things like this is the "first time in 10 years we have had a rate increase", but what is the average sale price now vs just 3 years ago pre covid? The market for rarer LPs has skyrocketed. I see plenty of used records selling for 3x what they were then. That price difference may be 10x what it was 10 years ago.  And we all know paying $50 for a double LP is starting to become more and more normal, so they are raking in more $$ than ever from record stores selling new stock too. Point being that their 8% cut is way more now than it was then.

 

I don't sell much anymore since the new tax laws took effect, but when I do I just use Ebay since I really like their Global Shipping Program. It sucks for the buyers, but makes it so much less stressful for me knowing that I don't have to worry about lost or damaged overseas packages once my item makes it to their Kentucky location.

Edited by fish
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So we just got this email:

One of the easiest things you can do to maintain your margins is to increase your prices. We created a guide to help you manage your inventory during this transition, including:

 

  • Tips for adjusting the price of all your items by a simple percentage
  • Calculations that illustrate the impact the new selling fee will have on typical prices
  • Data that may help you update item prices individually
  • Tools and processes for updating your inventory
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3 minutes ago, faaip de oiad said:

So we just got this email:

One of the easiest things you can do to maintain your margins is to increase your prices. We created a guide to help you manage your inventory during this transition, including:

 

  • Tips for adjusting the price of all your items by a simple percentage
  • Calculations that illustrate the impact the new selling fee will have on typical prices
  • Data that may help you update item prices individually
  • Tools and processes for updating your inventory

It blows my mind that they still don't have a cart system that doesn't create an order until someone pays. 

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18 minutes ago, ZeroNowhere said:

It blows my mind that they still don't have a cart system that doesn't create an order until someone pays. 

There's no way around making offers on multiple records this way. What they need is an actual penalty for not paying.

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12 hours ago, Shelby said:

There's no way around making offers on multiple records this way. What they need is an actual penalty for not paying.

Penalty = death.  If that's the reason they can't do it then they should get rid of offers and move on.  Being forced to wait 4 days for some deadbeat asshole to not pay while tying up inventory is stupid.

Edited by ZeroNowhere
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1 hour ago, ZeroNowhere said:

Penalty = death.  If that's the reason they can't do it then they should get rid of offers and move on.  Being forced to wait 4 days for some deadbeat asshole to not pay while tying up inventory is stupid.

At the very least they could give sellers the option to require immediate payment to create an order. Not everyone has offers as an option.

I could see this becoming a likely feature in the future. In the past few years, it seems every change made on the site has been in response from the mega sellers on Discogs and their needs/wants. Like who asked for an "RSD" tag in the formats? That doesn't benefit the average user but does help the sellers by allowing buyers to quickly filter inventory.

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1 hour ago, ZeroNowhere said:

Penalty = death.  If that's the reason they can't do it then they should get rid of offers and move on.  Being forced to wait 4 days for some deadbeat asshole to not pay while tying up inventory is stupid.

Which is why a penalty should be added without removing key features that aren't available elsewhere. If you disable someone's account for a month for non-payment the issue goes away.

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6 minutes ago, N8TRU said:

They COULD make it so offers have to be paid within 24 hours but I guess they can't think that hard. 4 days is ridiculous. I had it happen to me earlier this year on an expensive record.

They'd have to reduce the time you have to accept the offer too which I don't want. It's nice having 5 days to see if you'll get a better offer.

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