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Discogs Charging US Sales Tax, Beginning July 1st


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11 hours ago, ParallelofDeath said:

I'm sure many of you have noticed an uptick in scammers on the platform in recent months.

Lots of them are mass posting copies of the Long Pond Sessions from RSD, and the live Lover, I have them both in my watch list and 60+% of my daily notifications are those two albums significantly under retail. 

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The latest email is incredible.

 

Quote

Discogs is updating our selling fee on May 22, 2023, and we want to support sellers during this change.

The new fee is 9% of the item and shipping costs, so if you offer free shipping, the resulting fee will be smaller – and sellers on Discogs who offer free shipping typically see higher order values.

Average order size is 2.1 times higher on domestic orders with free shipping and 3.5 times higher on international orders. But don’t just believe us – almost 90% of collectors on Discogs consider buying additional items from a seller to decrease shipping costs, according to a 2023 survey.

We created a complete guide to the benefits of free shipping to help you determine if free shipping is right for you.

 

Records that ship for free sell like hotcakes! Don't complain about us charging you a 9% fee on a service we aren't even fucking selling you.  Just pay it out of pocket and save the 9% upcharge!

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Also their math is really bad unless they just think nobody pays for shipping if you make it free. Which they don't since they're just being sneaky. Including your shipping price in the overall price so it's "free" is still the same 9%. They're literally saying just pay shipping out of pocket to get a lower overall fee. Holy shit. I'm glad I don't really have anything expensive listed right now and it's just shit I need gone for whatever price. It may be time for a discogs replacement soon. 

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50 minutes ago, Shelby said:

Also their math is really bad unless they just think nobody pays for shipping if you make it free. Which they don't since they're just being sneaky. Including your shipping price in the overall price so it's "free" is still the same 9%. They're literally saying just pay shipping out of pocket to get a lower overall fee. Holy shit. I'm glad I don't really have anything expensive listed right now and it's just shit I need gone for whatever price. It may be time for a discogs replacement soon. 

Don't forget that if you raise the cost of your records right now then they get to take 8% of that increase for the next 10 days since they haven't raised the rates and started taking a cut of shipping too. So another small win for them.

Edited by fish
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FYI, don't offer free shipping as a default. Yes, the fees are the same either way, but Discogs doesn't sort by price to include shipping. Even if your price for a record plus shipping is the cheapest option for buyers, your listing will be lower down on the page and potentially buried in the listings. Keep charging shipping unless Discogs fixes their sorting.

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46 minutes ago, ZeroNowhere said:

I’ve had over 28,000 orders and sold 77,000+ records in the past 7 years and have never given anyone anything for free.  I must be doing something wrong.  

Not wrong, just different.  And no one is getting anything for free, its just the illusion of free.  The Amazon model of building the shipping cost into the listed price making customers think they are getting something free.  But also congrats on your sales, would love to get to that level some day.  I'm more around 500 record/CD sales a year.

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  • 5 months later...
3 hours ago, youspinmeround said:

A raise from the 600 to 10k is pending with government approval. Nobody thinks 600 was a good idea

Fully agree

12 minutes ago, copelandkid said:

oh man huge news. looks like it's called the "Red Tape Reduction Act" and passed the House in July. can't find any updates since then...

If anyone learns of any updates please post here. I can't seem to find any updates either.

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  • 5 weeks later...

Update on the Form 1099-K stuff.

 

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation

 

It seems to say that the $5000 threshold for 2024 is temporary to eventually drop to $600 in the future. I hope they rethink that. Even $5000 isn't great.

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9 hours ago, wiscodeman said:

Update on the Form 1099-K stuff.

 

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation

 

It seems to say that the $5000 threshold for 2024 is temporary to eventually drop to $600 in the future. I hope they rethink that. Even $5000 isn't great.

It's definitely encouraging to hear they're re-thinking how this will apply.  I think if they can raise the threshold and eliminate the ambiguity with how it is applied, then most of us will come out unscathed.  Then again, I could be totally naive...

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14 hours ago, robotfactory said:

So what do you use or plan to use?

At the moment I can't trim the fat, not selling til next year. I reached about $1000 this summer and stopped coz of that stoopid law. This sucks coz I like to upgrade my old stuff with better copies, pressings or colors.

I do that a lot...¯\_(ツ)_/¯

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