eBay Scrambles to Fight Congress - Muddy Water - Nerd Age

eBay has recently mailed out a blanket statement on fighting congress to many of their customers. In this article we want to tell you why and how it is changing the future of our online marketplace.

What is the Problem, eBay?

New legislation is being proposed to harden regulations on sales tax from online retailers. Right now the government loses around $24 billion in sales tax annually from online retailers. However, these regulations will make it much harder for those same retailers to make a profit. As such eBay is quite upset about it. Understandably so in many ways. In fact, eBay strives to provide it’s users and customers with an excellent e-commerce platform and are well known for having efficient and effective help desk support whenever you have a query related to the site. You can learn more about this right here if you are unaware of why this is so appreciated. Due to things like this, many businesses continue to use eBay to sell their products. Many of them will use dropshipping services from a third party source to help them getter better features. Businesses using that sort of thing can enjoy semi-automated services and easier product management. This is why many businesses will use eBay to sell their products.

Who Stands to Win?

The government for one stands to profit immensely from this bill. They will gain a huge amount in taxes. Many large establishments such as Wal-mart also stand to profit immensely. Most of their business is not made online so a momentary hit will not hurt them much.

Who Stands to Lose?

Retailers such as eBay and Amazon stand to take huge losses from this. Most of their profits are made online and taxes will choke them. It may even lead to the downfall of one of these two big names. The bill will make it so those who make $1 million in online sales will be hit by the bill as well. This means that many mid-size businesses are going to be hurt by it. The current threshold is $10 million. Of course, it’s unlikely that a huge company like Amazon will be affected. Due to their success, they should be able to survive these taxes. Additionally, Amazon also allows people to buy shares in their company. This helps them to improve their services. To learn more about investing in Amazon, people could always read about Amazon shares hier (here).

A Muddled Area for eBay

The claim that this will hurt most small businesses is ridiculous. Many of them do not make $1 million in total, much less online. Many of them will be completely unaffected. However, this will hurt mid-size ones in a major way and seriously damage some of our popular outlets. That’s why some more popular online businesses might feel the need to up their game and create more sales. By using marketing help, like these free sales funnel templates, more businesses should be able to achieve more customers, meaning they should increase their total sales. This should help these businesses because, by making more money, they may feel less of the consequences of this new tax. Likewise, there are many people on eBay who do make that amount in out-of-state sales so they will be badly hurt. We cannot say whether the legislation is right or wrong so you should decide for yourself. It is not as clear-cut as something like CISPA.

For those who dislike this turn of events you can side with those against it at this link: eBay Call to Action.