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Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
The EcommerceBytes Blog may be unavailable for a short period on 1/30/12 between 11am and 2pm ET as we upgrade software.
January 28, 2012
Permanent Link for Amazon Sellers Can Now View IRS Tax Form 1099K   Amazon Sellers Can Now View IRS Tax Form 1099K
By: Ina Steiner
Sat Jan 28 2012
028:55:30
Many readers have questions about the impact of the new IRS Form 1099-K on their tax returns - and Amazon sellers are now reporting they can view their reports when logged in to Amazon.

We've written about the 1099Ks extensively (tax guru Barbara Weltman wrote earlier this month about how the new forms impact your tax return, and Kenneth Corbin wrote some good background in October, for example).



I also came across a video on YouTube that raises an interesting point - does the name of your company on file with Amazon, PayPal, Google Checkout and credit card companies exactly match the name that's on file with the IRS?

This is the first year online sellers have to deal with the new IRS reporting requirement. We'll continue to report on developments in EcommerceBytes. In the meantime, we're eager to hear from readers about what you're experiencing.

Let us know if you've received 1099-Ks from any of the payment processors (Amazon, PayPal, etc.), and what questions you have about the new form.
Reading EcommerceBytes Blog: Amazon Sellers Can Now View IRS Tax Form 1099K
Comments (3) | Permalink
January 26, 2012
Permanent Link for Magento Go Leaving ProStores Users in the Lurch?   Magento Go Leaving ProStores Users in the Lurch?
By: Julia Wilkinson
Thu Jan 26 2012
14:47:24
eBay's support of Magento Go, the ecommerce solution for small business sellers acquired as part of Magento by eBay last year, has some ProStores users worried they'll be left in the dust.

One seller who's been using ProStores since 2005 said, "Late last year, ProStores ended all eBay-related discounts - there had been several available to PS owners as incentive to use eBay. I have to wonder why they ended all eBay financial ties - I do not know of course, but my speculation is that they want to sell PS." He said he thought they could not do that with eBay incentives tied to merchants/ProStores storeowners.

"That is purely speculation on my part, but it goes together with my observation that eBay no longer pushes PS, or sells PS to eBay merchants or actively promotes PS in any way - unlike Magento," he said.

"I can tell you that ProStores does not seem to be pushing merchants to Magento," he added. "We have had no solicitation from PS about Magento." He said he knows nothing about Magento, "other than they are now with eBay and their pricing structure."

"ProStores is conspicuously left out of any serious discussion of their new development framework X.Commerce," said BN.com Ecommerce Marketplace GM Rick Watson, who blogs about ecommerce at RickWatsonsBlog.com.

"EBay appears content for the moment to leave ProStores well enough alone, and even incrementally add to it, but strategically it's not clear to me what the direction is at the moment vis-a-vis Magento," he said. "Obviously many customers are invested in the ProStores platform, which makes this a five-year horizon-type decision rather than something that can be done hastily, so over time we will have to see how they weave the story for customers."

There doesn't seem to be much discussion about the new platform on the ProStores discussion boards. The ProStores seller said he is "surprised at the lack of comments about the platform - except when it goes down. Then there are a lot of comments!"

He said there was a discussion when Google Wallet came out - about how eBay was being heavy-handed and not letting ProStores sellers - independent merchants, after all - use Google Wallet, but that has died down as Google did not make many inroads on independent web sites." He added that there are occasional grumblings that eBay/ProStores will not allow Amazon Payments either - but "there is (an expensive) work-around for that (self-coding)."

What do you think the future of ProStores will be? Do you use ProStores, or have you ever used it, and how do you like it?

About the Author
Julia Wilkinson is the author of "The eBay Price Guide" (No Starch Press, 2006) and "eBay Top 100 Simplified Tips & Tricks" (Wiley, 2004-6). Her free "Yard Salers" newsletter is at available at YardSalers.net where you will also find her latest ebook, Flip It Again.
Reading EcommerceBytes Blog: Magento Go Leaving ProStores Users in the Lurch?
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January 25, 2012
Permanent Link for PayPal Email Change Causes Major Headaches for Merchants   PayPal Email Change Causes Major Headaches for Merchants
By: Ina Steiner
Wed Jan 25 2012
21:57:05
Some online merchants, including eBay and Etsy sellers, are upset at a change PayPal made to its "Notification of payment received" emails (more details available in EcommerceBytes Newsflash).

PayPal sends the email notices to sellers to let them know the buyer paid for their purchase, and is the sellers' cue to enter into the fulfillment stage of the transaction.

Normally the payment notification emails that come from PayPal have the buyer's email address in the "From" field. As of late Tuesday evening, PayPal began entering the generic email address "service@paypal.com" in the "From" instead.

Some sellers rely on the emails to organize their transactions, relying on the From field as an identifier - as one seller wrote on a discussion board, "I've built an entire fulfillment system around the transaction email, and now it's completely broken."

A merchant explained how complicated the change makes the fulfillment process. "If anyone us using gmail to access emails, just wait until you sell two or more of the exact same item, and get all the payments bundled together as a single "conversation" or "thread" within gmail. It's a hoot! I'm not one to get on a soapbox, and usually roll with Ebay/Paypal's punches, but this one definitely deserves a HUGE: CHANGE IT BACK .... NOW!!!"

Another seller wrote, "the fact that this change was made without any notification and warning so we could adjust to it is inexcusable." The seller wen on to ask, "can you not at least vary the subject line? E.g. instead of every message having the identical subject line "Notification of payment received" can it not say "Payment from John Smith received"? As a previous poster noted, for any of using Google as our email provider, if we got 40 payments in one hour then they all come into the inbox grouped as a single thread. I've got many staff working in the inbox and now no one knows who got what payments."

We're awaiting more information from a PayPal spokesperson who responded to our inquiry this evening and is looking into the issue.

Reading EcommerceBytes Blog: PayPal Email Change Causes Major Headaches for Merchants
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January 24, 2012
Permanent Link for Who's Buying Where and the Influence of California Art Law   Who's Buying Where and the Influence of California Art Law
By: Julia Wilkinson
Tue Jan 24 2012
20:20:49
Ever wonder which countries and which U.S. states buy the most antiques and collectibles? TIAS.com recently released its geographic data of where online buyers of antiques & collectibles came from in 2011, and the results are interesting.

In terms of countries, the U.S. is by far the largest purchaser of such goods on TIAS.com, accounting for 92.2% of online sales. California topped the list of U.S. states for both 2011 (11.9% of online sales) and 2010 (10.9% of online sales). It's followed for 2011 by Pennsylvania (7.2%), New York (6.6%), and Texas (6.0%).


"California became even more dominant as the location for buyers of antiques & collectibles online," said TIAS.com President Phillip Davies, noting there were also some major shifts in rank of the remaining U.S. States compared to 2010.

Given California's status as a top-spending U.S. state for this kind of merchandise, it may not be surprising there's a legal battle going on there now between artists and art resellers. In a class action lawsuit, artists are suing eBay and auction houses Christie's and Sotheby's, claiming those companies are not collecting a five percent royalty fee every time a piece of art is resold, as required by a California law.

The law is intended to give artists a chance to reap the rewards of their work appreciating over time, as many artists sell work cheaply early in their careers.

And California art dealers can't get around the law by selling the work outside of the state; the law says the royalty still applies as long as the seller is a California resident. But the sellers say the law interferes with interstate commerce by imposing a burden on out-of-state business activity, and also that it intrudes on federal copyright powers. They are asking the court to declare this California law unconstitutional.

What do you think about the law? Is it fair or unfair to the artists, or do you think the sellers are right on either argument?

And where do the majority of your sales come from?

About the Author
Julia Wilkinson is the author of "The eBay Price Guide" (No Starch Press, 2006) and "eBay Top 100 Simplified Tips & Tricks" (Wiley, 2004-6). Her free "Yard Salers" newsletter is at available at YardSalers.net where you will also find her latest ebook, Flip It Again.

Reading EcommerceBytes Blog: Who's Buying Where and the Influence of California Art Law
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January 23, 2012
Permanent Link for Changes Coming to EcommerceBytes Blogs   Changes Coming to EcommerceBytes Blogs
By: David Steiner
Mon Jan 23 2012
19:46:00
Over the next few days, we'll be rolling out some new features to the blogs on EcommerceBytes. 

1) To leave a comment on the blogs, users will need to register with AB-Verify, which requires a valid email address. This will help protect a person's User ID on the blogs so that it cannot be used by multiple users. We launched AB Verify two years ago and it will soon be required in order to post a comment.

2) Users will now have an "account settings" page, where they can:
  • Change their password
  • Opt-in to receive email notifications if there is a response in a thread where they have left a comment.
  • Upload a 50x50 pixel avatar to distinguish their screen persona.
We appreciate the feedback we received over the past month. We considered all perspectives, and feel these updates will enhance the experience on our blogs going forward. We'll also have an upcoming announcement in the next couple of weeks that is rather exciting, so stay tuned.

As always, we'll be watching closely as we make these changes. If you notice any issues, don't hesitate to comment or contact me at dsteiner@ecommercebytes.com

David Steiner
Reading EcommerceBytes Blog: Changes Coming to EcommerceBytes Blogs
Comments (27) | Permalink
January 21, 2012
Permanent Link for Antiques Roadshow Embroiled in Appraiser Controversy   Antiques Roadshow Embroiled in Appraiser Controversy
By: Ina Steiner
Sat Jan 21 2012
21:38:08
Before "Pawn Stars" and "Storage Wars," before "Cash in the Attic" and "Collector Inspector," there was the "Antiques Roadshow." The nine-time Emmy Award-nominated program that airs on PBS public television stations around the country celebrated its 15th season last year.

Now, a dispute between an appraiser, Gary Sohmers, and the "Antiques Roadshow" gives a rare glimpse into the workings of the show, described in an article in Sunday's EcommerceBytes Update newsletter. (For example, did you know that independent appraisers pay their own way to various cities just for a chance to appear on the show?)

The dispute focuses on the restrictions the show places on appraisers to do outside media appearances. But by tightening up the way it enforces this provision, the Roadshow is missing out on free publicity!

With his long ponytail and Hawaiian shirts, Gary Sohmers is a unique brand and a tireless self promoter. Kenneth Corbin mentions in his EcommerceBytes article an alleged incident in which Roadshow producer Marsha Bemko confronted Gary for appearing on a radio show in Miami. But who among us wouldn't love a small army of people helping to promote our brands on radio and TV, as long as they were clear about their relationship? The question is especially relevant in this day of social networking.

As we were going to press with the article, we learned of new developments. Sohmers sent us a letter he received from WGBH corporate counsel Eric Brass who wrote, "WGBH is revising its practice for the Antiques Roadshow website so that the contact information of past appraisers will be generally available."

In a reply Sohmers drafted, he writes that the letter from Brass failed to address "90% of the issues," and writes, "The question remains …will I be invited to appear as an appraiser this season and in an environment that is not hostile to me? "

We regret that WGBH, which produces the program, wouldn't share more with our reporter about the dispute. As a fan of the show, I hope it is quickly resolved to everyone's satisfaction.

Reading EcommerceBytes Blog: Antiques Roadshow Embroiled in Appraiser Controversy
Comments (25) | Permalink
January 19, 2012
Permanent Link for eBay's New Coins Policy Buys Troubled Discussion   eBay's New Coins Policy Buys Troubled Discussion
By: Julia Wilkinson
Thu Jan 19 2012
22:05:48
eBay's changing another policy in its continuing effort to "help people shop and sell more confidently," this time within the coin category on the site - it is banning listings for replica coins effective February 20th. (See Friday's Newsflash article.) And not surprisingly, it's got sellers worried about the nuances of the policy wording, how far it will go, and how it will affect their businesses.

On the eBay Coins & Paper Money Discussion Board, one seller mused, "I wonder what will happen to collectible counterfeits, fakes and reproductions of coins?" And another wondered, "Where does someone list their 1861 Confederate half dollar now?"  

Quoting a detail at the end of the new eBay coin policy "Fact Sheet," which states, "This update reflects standards across the coin industry and helps ensure compliance with applicable laws that require replica coins to be permanently marked with the word "copy"," a seller wrote, "In order to protect a buyer from buying a counterfeit copy that is not marked, they are going to disallow anybody from listing an AUTHENTIC COPY that IS marked according to industry standards??"

Another seller speculated, "You don't suppose this resulted from some perceived liability from the common practice of Chinese replica sellers listing properly marked and identified replicas here, and then shipping unmarked items, do you?"

They added, "I have to say I'm somewhat surprised.  Mostly we'd been interested in forcing properly identified replicas into the appropriate "Reproductions" categories, to avoid spamming up the listings for real coins, and eBay had resisted even that." He said he was not unhappy to see them "get the boot entirely," but that it was going to cut down on listing count across the Coins category quite a bit.

Chinese unmarked copies are a problem, according to Frank Provasek, who wrote on the CoinUpdate.com site, "The coins they Chinese sellers are sending are unmarked." He posted a link to "a real 1892 Morgan and a fake unmarked 1879-S Morgan that I bought from a Chinese seller as a test."

Another seller pointed out that there is a market in replica coins, which are so marked. This US seller, identifying himself on the board as John Lorenzo, wrote, "I am one of top collectors and sellers of evasive coinage and other types in the world and respected on both sides of the pond both from my collections I have sold and my current transactions." He added that, "We may have to play word games here, but this is difficult for high-end contemporaries, which is normally collected only by high-end well-read collectors."

He said, "This replica ban has been told to me to go back historically all the way to Libyan coins (i.e., the beginning of coinage) - all the way back  - so well document(ed) Greek and Roman forgeries that can bring hundreds or four figures in a Spink's or Baldwin's Auction because of their collectibility with regals or in a Heritage or Stack's Bowers Auction in the U.S. for say a Machin('s) Mills piece - which is listed in the Red Book - can now and WILL BE pulled if the word non-regal, forgery or counterfeit exist in the description." He said he planned to  discuss the topic issue with an eBay numismatist."

The seller who kicked off the policy discussion thread (with the whimsical heading of "Coin Replicas no longer allowed (better title than Who Hoo)"), however, should be safe to list his replica coins because they are so large. He sells "replica coins and replica coin keychains which are three inches across (the size of a drink coaster)," and  has people "who buy them to make Elvis Belts out of them in Las Vegas...coaches use them to toss at the start of  a game...coasters, paperweights, etc., etc."

But this seller did speak with an eBay rep and was told, "...We define replica coins as a copy or reproduction of an actual coin, including US, foreign and other historic coins. Which would mean that because yours are much larger that you should have no issue listing them on eBay." Although he advised him to change the category he listed in.

What do you think about the new eBay coins policy? Should marked copies and replicas be allowed?

About the Author:
Julia Wilkinson is the author of "The eBay Price Guide" (No Starch Press, 2006) and "eBay Top 100 Simplified Tips & Tricks" (Wiley, 2004-6). Her free "Yard Salers" newsletter is at available at YardSalers.net where you will also find her latest ebook, Flip It Again.

Reading EcommerceBytes Blog: eBay's New Coins Policy Buys Troubled Discussion
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