How To Liquidate

Collectibles

When it is time to liquidate inventory you will have to find a buyer.  The time to sell may come when you no longer want the collectible, cash is needed, or the value has increased to a point where selling feels right.  You can either sell in a online market like eBay or on Facebook.  They will give you a wide audience to find a buyer.  There can be face to face cash transactions with a local buyer.  Selling online yourself means you have to take the time and effort listing and shipping it.   You will create professional and accurate listings with detailed pictures.  When selling factor in everything such as fees, taxes, shipping, purchase price, and sale price to determine how much you actually gained.  
With Facebook you have Facebook Marketplace and stores as selling option.  There are Facebook groups that are specific to buying, selling, or trading your collectible.  You can ask to join these groups to start listing your items for sale there as well.  Listing in the Facebook Marketplace and the buy, sell, and trade groups do not have sellers fees.  However online payment   
Auction-style sales on eBay can guarantee you will make a sale but you may gain less profit.  The buyers are dictating the value at this point.  You are allowed to put in a reserve price. 
Buy It Now online sales means you can dictate the selling price but a buyer may not be willing to pay what you are asking.  The listing could sit there unsold for some time if not indefinitely.  When figuring a reasonable Buy It Now value look at listings that actually sold to see what a fair price may be.  If a buyer is negotiating a sale price or sending an offer you are willing to accept then feel free to accept.   
As of 2022 eBay now issues a Form 1099-K for all sellers who receive $600 or more in annual sales.  Here is a link to the eBay website for details on income tax filings link.  Taxes could range somewhere from 25% to 30%.  This means the tax man cometh for your earnings.  Keep records of your net original purchase price, net final sale value.  You could write off the net purchase price from the taxable net earnings.  Costs such as grading and even a safe for storage could as be deductible.  Since it is tangible and could be damaged or Consult a tax professional with questions.  When factoring in, sellers fees, shipping,  and taxes you could still gain a profit with online sales.  It is all weighing the original purchase price against current market value.  
A 12% final value fee is charged by eBay on sales and there are shipping costs you will pay.  Here is a link to eBay detailing their fees link.  Income taxes and a 4% fee can apply when it comes to payments you received via PayPal.  We recommend using PayPal when accepting online payments.  It is a secure form a avenue to receive payments.  The Friends and Family option for PayPal payments is meant for non-business transactions but does not charge fees or file taxes on the sale.  Buyers may not want to use this option because there is no recourse to get their funds back.  If you do you Friends and Family you are still obligated to report the earnings on your taxes.  All online payment options such as PayPal and Venmo are obligated to track payment transactions for tax purposes.
Most cash buyers will negotiate at a lower value but there are no included fees, taxes, or shipping costs automatically added.  Brick and mortar stores or resellers may give you a reduced price if you tried to sell to them.  They need to make a profit too.  It would be a quick instant cash transaction but at a loss.  If you are lucky to find a local buyer who is willing to pay cash at a price you are willing to take that is a win.   Again be careful about who and where you meet.  Keep us in mind as buyer.  Fill out our online form to let us know what you have.