Quote:
Originally Posted by Exhibitman
Probably because in their recent earnings call, eBay cited Gross Merchandise Volume (GMV) down 17% in the first quarter of 2022, year-over-year. Revenue down 5%. And the number of active buyers dropped 13% from 163 million in Q1 2021 to 142 million in Q1 2022. They are scrambling for revenue and imposing a new service and skimming yet another processing fee is a way to get it.
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I believe (my opinion of course) that a lot of this decline in eBay sales and sellers has to do with the new 1099 requirement imposed on eBay, PayPal, Zelle, Venmo, etc. to report aggregate annual gross transaction revenues per seller over $600 -- which was part of the 2021 American "Rescue" Plan. The new service/skimming will ultimately not work and just shoo more sellers (and buyers) away from these platforms. It is fair to say that this new 1099 requirement makes unscrupulous sellers who under-report sales pay what they owe; on the other hand, many sellers (myself included) who report their card income to the IRS simply don't want the hassle of receiving a 1099 and will no longer deal with these platforms.