Originally posted on 1/20/2019
Updated 1/28/2020
This is a quick video that discusses the reality of selling shoes and the 1099-K that you will receive from PayPal (eBay or StockX), Amazon or any resale platform that you sell on once you hit $10,000 in gross sales. Why is this important? A lot of people are jumping into resale because StockX has made the entry a lot less difficult. I wrote a book on the “shift in sneaker retail” and it includes a section on StockX, Amazon and on Nike.
In the book I discuss a broad range of topics from e-commerce, to marketing, but I ground the discussion in my failure to understand how business works and how this led to my bankruptcy and loss of a half a million dollar a year business on Amazon. Taxes have to be paid, and if you attempt to avoid adding your 1099K to your taxes it can lead to an audit. If you are found to have an incorrect tax submission your wages can be garnished, or for students you won’t be allowed to apply for FAFSA. As easy as it is to jump in the resale waters, doing so should not be taken lightly.
If you are diving in then I advise setting up a Quickbooks account to track all of your expenses.
