ClickZ eBay Insights Newsletter - 2.06.25

The IRS now requires online sellers to report earnings over $5,000—dropping to $600 by 2026

Author

Nandini Sehgal
February 06, 2025 • Estimated Reading Time: 7 minutes

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Welcome to eBay Merchant Insights, your trusted source for updates and analysis on eBay’s latest developments.

Editor’s Pick🌟

ECOMMERCE INNOVATION INSIGHTS

Amazon’s “walled garden” has kept brands guessing—until now. Fospha’s latest research reveals the true impact of DTC ads on Amazon sales by measuring Unified ROAS (Shopify + Amazon revenue):

🔹 TikTok: +80% higher ROAS when Amazon is included

🔹 Meta: +46% higher ROAS (a major shift at scale)

Paid Social drives purchase intent—consumers click today but buy on Amazon later. Now, for the first time, it’s measurable.

Sector Spotlight 🎥

E-COMMERCE TAXATION

The IRS has updated 1099-K reporting standards, requiring eBay sellers and others earning over $5,000 through online platforms to report this income in 2024. By 2026, the threshold will drop to $600. Accurate reporting is essential, as companies also report transactions to the IRS, ensuring compliance and avoiding penalties.

EBAY COST STRATEGY

eBay's 0.35% hike in final value fees, effective February 14, 2025, signifies a strategic move to bolster investments in seller enhancements. This adjustment, distinct from European models, influences item prices, postage, and taxes. It highlights eBay's commitment to competitive value, providing pivotal insights for U.S. eCommerce professionals.

VINTAGE FASHION AUCTION

Vogue's eBay collaboration exemplifies the strategic leverage of preloved fashion in enhancing eCommerce performance, emphasizing sustainability. Featuring authenticated designer pieces, this initiative propels Canopy Planet's anti-deforestation efforts, aligning with digital marketing trends. It presents marketers with actionable insights into fostering eco-conscious consumer engagement and strengthening brand equity within the U.S. market.

Influencer Corner 📣

Daniela Morosini on LinkedIn: What could a slimmed-down Estée Lauder Companies look like?

Earlier this week, Bloomberg reported that the company has hired an advisory firm to undertake a strategic review of its portfolio. The ELC we know today was built by buying brands (it has more 20) and for much of the 2010s, the more-is-more strategy worked. This was the heyday of indie beauty, and exciting, founder-led brands could fetch quite a premium — Too Faced was acquired for $1.4 billion.

Alex Cooper on LinkedIn: Here's how to use psychology to design static ads that stand out in the feed. 🧠

I asked psychology expert Sarah Levinger for her take and I was not expecting this answer...

www.linkedin.com/posts/alexgoughcooper_heres-how-to-use-psychology-to-design-static-activity-7290492013219663873-2YQE?utm_source=share&utm_medium=member_desktop

Performance Pulse 📈

PRECISION MARKETING INSIGHTS

Amazon DSP Performance utilizes AI to refine programmatic advertising, driving superior results. It identifies and re-engages key consumer segments by decoding behavior, optimizing across multiple platforms. The system's analytical prowess allows advertisers to fine-tune campaigns with data-driven adjustments, ensuring impactful engagement and heightened effectiveness in consumer outreach strategies.

AMAZON INSIGHTS MASTERY

Harnessing Amazon Ads' bid modifiers API, Profitero and Zenith crafted a bespoke algorithm for Coty, fusing digital shelf analytics with Amazon DSP. This strategic innovation bolstered Coty's advertising efficiency by 28%, capitalizing on competitive data to refine bids and amplify consumer engagement in the competitive beauty sector.

RETAIL ANALYTICS

AI recommendation systems enhance consumer engagement on Amazon by harnessing content-based, collaborative, and hybrid filtering methods. These systems meticulously tailor product suggestions, enhancing customer loyalty and boosting sales metrics. While they offer strategic advantages in personalization and retention, the challenge of managing extensive user data persists in this innovative landscape.

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