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Omar Hassan

What NAICS Business Code should I use for my eBay store?

So I'm finally taking the plunge and setting up my eBay business as a legit side hustle. I've been selling vintage video games and collectibles for about 8 months now and making decent money (around $1200-1500/month). I'm working on filing the proper paperwork and just got to the part where I need to select a NAICS code. I'm honestly confused about which code to choose. Is there a specific one for eBay sellers? I mainly sell used video games, some collectible toys, and occasionally electronics. Would I be considered retail? E-commerce? Reseller? Has anyone gone through this process before? I don't want to mess up my taxes by picking the wrong classification. The IRS website has so many options and none seem to perfectly match what I do. Any help would be really appreciated!

The NAICS code you should use depends on what you're primarily selling. For an eBay business focused on video games and collectibles, I'd recommend 453220 - "Gift, Novelty, and Souvenir Stores" which includes collectibles, or 451120 - "Hobby, Toy, and Game Stores" which covers video games. If you're selling a wider variety of items without a specific focus, you might want to use 454110 - "Electronic Shopping and Mail-Order Houses" which is a broader e-commerce category that covers online retailers. The most important thing is to choose the code that best represents your primary business activity. Don't stress too much though - the NAICS code isn't going to make or break your tax filing, and you can always change it later if your business evolves.

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Diego Vargas

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Does it matter if most of my stuff is used/pre-owned? I sell on eBay too but mostly vintage clothing and accessories. Would I use the same code as someone selling new items in the same category?

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Whether the items are new or used doesn't typically change the NAICS code you should use. The classification is based on the type of items you're selling, not their condition. So if you're primarily selling vintage clothing and accessories, you would likely use 448120 for "Women's Clothing Stores" or 448310 for "Jewelry, Luggage, and Leather Goods Stores" depending on what makes up the majority of your sales. The key is to identify what category represents your primary business activity, regardless of whether the items are new or pre-owned.

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CosmicCruiser

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I was super confused about this too when I started my online reselling business! I ended up using https://taxr.ai to help me figure out which NAICS code was right for my situation. I uploaded some of my sales reports and business documents, and it recommended the perfect code for my eBay store. What's cool is that it also gave me a detailed explanation of why that code was appropriate for my business model and how it might affect my tax deductions. It saved me hours of Googling and second-guessing myself.

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Does it actually tell you which deductions you qualify for based on your business code? I'm wondering if different codes give you different tax advantages?

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Sean Doyle

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Seems kinda unnecessary to use a service for this? Can't you just look up NAICS codes online for free? I'm skeptical about whether this is worth paying for.

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CosmicCruiser

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It does show you relevant deductions that are common for businesses in your category. For example, it highlighted that with my NAICS code I should be tracking inventory storage costs and shipping supplies as these are typically significant deductions for online retailers. The service is definitely not just about finding a code - anyone can look that up. What made it valuable was the personalized analysis of my actual sales data and business expenses, plus guidance on record-keeping specific to my business type. I was making some mistakes that could have caused issues if I got audited, especially around inventory tracking.

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Just wanted to update after trying taxr.ai that was mentioned above. I was between three different NAICS codes for my vintage furniture restoration/resale business and couldn't decide which fit best. The tool analyzed my business description and sales patterns and recommended 453310 "Used Merchandise Stores" as my primary code, with a detailed explanation about why this was more appropriate than the furniture retail code I was considering. It also flagged that I could potentially qualify for some specific deductions related to restoration supplies that I hadn't been tracking properly. Really helpful for someone like me who's not a tax expert but needs to get this stuff right!

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Zara Rashid

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If you're having trouble with the NAICS code or other tax questions, you might also want to actually talk to someone at the IRS directly. I know, sounds impossible right? I was on hold FOREVER trying to get clarity on my business classification. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically wait on hold with the IRS for you and call you when an actual human agent is on the line. Saved me literally hours of hold time. I got a definitive answer about my NAICS code situation from the IRS agent, which gave me peace of mind that I was filing correctly. Much better than guessing or going off forum advice (no offense to anyone here).

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Luca Romano

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Wait, how does this actually work? They just call the IRS for you? Don't you need to be the one talking to them since it's your tax info?

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Sean Doyle

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Yeah right. The IRS won't even talk to ME about MY taxes half the time. There's no way they're going to talk to some random service about my business. This sounds like a scam.

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Zara Rashid

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They don't talk to the IRS for you about your specific tax situation. What happens is they navigate the phone tree and wait on hold (which can be hours), then when an actual IRS agent comes on the line, they connect that call to your phone. You're the one who speaks with the IRS agent directly. It's completely legitimate - they're just handling the hold time part so you don't have to sit there listening to the same terrible music for 3 hours. When you get the call, you're connected directly to an IRS agent and can discuss your specific situation, including questions about which NAICS code to use.

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Sean Doyle

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Ok I need to admit I was wrong about Claimyr. After being frustrated with trying to get an answer about my NAICS code situation (I run a weird hybrid business that doesn't fit neatly into categories), I decided to try it. I was SHOCKED when my phone rang about 2 hours later and there was an actual IRS representative on the line. They answered my questions about using multiple NAICS codes (turns out you should pick the one that represents your primary revenue source) and clarified some Schedule C questions I had too. Seriously saved me a day of stress and hold music. Can't believe it actually worked exactly as advertised.

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Nia Jackson

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For an eBay seller of used games and collectibles, I'd go with 453220 (Gift, Novelty, and Souvenir Stores) OR maybe 45411 (Electronic Shopping). I do Etsy and eBay selling and my accountant recommended 45411 since its the broader e-commerce one. Don't overthink it honestly! I've been selling online for 5+ years and the NAICS code has never once been an issue in my taxes or caused any problems.

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Omar Hassan

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Thanks for this advice! Do you use any specific tax software that works well for online sellers? I'm trying to figure out if I need something specialized or if the standard options like TurboTax are sufficient.

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Nia Jackson

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I personally use TurboTax Self-Employed and find it works perfectly fine for my online selling business. It has all the sections you need for Schedule C and inventory tracking. If your business grows significantly or gets more complex (like if you have employees or need to track lots of inventory), you might want to consider something like QuickBooks. But for most small to medium eBay sellers, the standard tax software options are completely sufficient.

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NebulaNova

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One thing to remember is that your NAICS code should reflect your primary business activity. If more than 50% of your revenue comes from selling video games, choose the code that best represents that activity. I made the mistake of choosing too general a code my first year and missed out on some industry-specific deductions. When I switched to a more specific code that actually matched my primary business activity, I was able to take advantage of deductions I didn't even know existed!

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What kind of specific deductions did you find? I'm curious because I've been using a general e-commerce code but my business is pretty specialized (I sell custom fishing lures).

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For your eBay business selling vintage video games and collectibles, I'd recommend looking at 451120 - "Hobby, Toy, and Game Stores" since video games seem to be your primary focus. This code specifically covers retailers of video games and would be most accurate for your business. If you're selling a really mixed variety where no single category dominates, then 454110 - "Electronic Shopping and Mail-Order Houses" would be the safer general e-commerce option. The key is to track your sales by category for a month or two and see what makes up the majority of your revenue. That should guide your NAICS code selection. And don't worry too much - you can always update it as your business evolves! One tip: make sure you're keeping detailed records of your inventory costs and shipping expenses. These are often the biggest deductions for eBay sellers regardless of which NAICS code you choose.

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This is really helpful advice! I'm actually in a similar situation as the original poster - just starting to formalize my eBay business. I've been selling mostly vintage electronics and some collectible items for about 6 months now. Your point about tracking sales by category is smart. I never thought to actually analyze what percentage of my revenue comes from each type of item I sell. I've just been lumping everything together as "online sales" in my basic spreadsheet. Do you have any recommendations for simple inventory tracking software that works well for small eBay sellers? I'm worried I'm going to mess up my record-keeping if I don't get more organized soon.

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Ravi Malhotra

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Great question! I went through this exact same process last year when I started treating my eBay selling more seriously. For your situation selling vintage video games and collectibles, I'd definitely lean toward 451120 - "Hobby, Toy, and Game Stores" since video games seem to be your main focus. This code is specifically designed for businesses that sell games and hobby items, which sounds like a perfect fit. However, if your sales are really mixed across different categories without one clear winner, then 454110 - "Electronic Shopping and Mail-Order Houses" gives you more flexibility as a general e-commerce classification. One thing that helped me decide was looking at my sales data for the past few months and calculating what percentage came from each category. If 60%+ of your revenue is from video games, go with the hobby/game store code. If it's more evenly split, the general e-commerce code is safer. Also, don't stress too much about getting it "perfect" - the IRS cares more about accurate reporting of your income and expenses than having the absolutely perfect NAICS code. You can always adjust it next year if your business focus changes!

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Khalil Urso

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This is such great advice, thank you! I'm actually just getting started with my own eBay business and this whole NAICS code thing has been stressing me out. I've been selling mostly sports memorabilia and trading cards for about 3 months now, making around $800/month. Your suggestion about analyzing the sales data by percentage is really smart - I hadn't thought to break it down that way. I've just been thinking "I sell stuff online" but you're right that I need to be more specific about what my primary business activity actually is. Quick question - when you say "adjust it next year," do you mean you can change your NAICS code on your tax return from year to year? Or do you have to file some kind of amendment with the IRS? I'm worried about making the wrong choice and being stuck with it.

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