We often hear the phrase "Amazonization of eBay" these days, which is in my opinion a legally actionable insult to Amazon; but maybe it is time to coin a new phrase to refer to the FUBAR effect on the eBay.com site, used as a verb, to "eBay IT up.""
An astounding statement after the eBay announcement regarding the PayPal transaction reporting requirements which will become law in 2011 as part of the American Housing Rescue and Foreclosure Prevention Act of 2008. Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:
1. receive more than $20,000 in payment volume in a single year; and
2. receive more than 200 payments in a single year.
This is in no way shape or form eBay's fault. It is just another step in the transformation of America into George Orwell's 1984 by our elected officials. Big Brother is watching you and wants to watch more. I don't actually have a problem with it, I pay my taxes.
BUY THIS Noah's Ark Note Card - CLICK 
One good thing that may come out of it is that eBay and PayPal will be forced to upgrade the ancient version of Quickbooks they bought off Noah's online garage sale. The one that is not compatible with anything newer than an Apple IIe. We can always hope.
Ken Swab who is the senior Federal Government Relations officer at PayPal blogged on this on Tuesday morning. He said:
I want to emphasize that this new law affects a small percentage of PayPal customers.
Say what?
Either this guy doesn't know what he is talking about, always a possibility, or eBay as we knew it has disappeared a lot faster than we ever thought it could.
$20,000 a year averages out to $1666.66 a month, making you a 'gasp' PowerSeller! It would not be unreasonable to peg overhead at 30% of that if you include all eBay and PayPal fees, item cost, repeat listings, internet access, hardware, software and postage and packing expenses. Pre-tax, federal and state, net would be $1165 a month (rounded).
On a 60 Minutes program aired March 11th this year just before she retired, Meg Whitman said
"We have about – around the world, about 1.3 million people make most, if not all, of their living selling on eBay."This was echoed by presidential contender John McCain in Martin County Kentucky who can be heard on NPR's Morning Edition, 25th March 2008 (1:28 into the tape) adding the information
"... most of whom are in the United States."
Yet Ken Swab "says this new law affects a small percentage of PayPal customers" The question is who is eBaying it up? The ex-CEO of eBay, Presidential hopeful John McCain or Ken Swab?
Ms Whitman, $1166 a month pre-tax is not making a living. Advice to you folks out there hopeful of "making a living on eBay" . . .Don't quit your day job!"
Y'all come back!
UPDATE:
Scott Pooler on Trading Assistant Journal has a different angle on the same subject.
