How to sell a knife on BladeForums

[jlauffer]

Hey all,
Great thread to what I'm looking for, I literally just signed up today. I must have been living in a cave, because I've been collecting knives on and off since I was young, and I just now have signed up with this site. I would hear of people and YouTubers mention this site, but never connected the dots.
My question though, after purchasing and posting knives for sale, what should I expect as the next steps? Do I go to the post office and ask for a box to ship the knives in? How would I receive payment? Totally new to the forum buy/sell thing.

Thanks in advance to any help you may have.

Keep in mind the first thing you'll need to do is get at least a Gold membership.

 

[straztech]

Electronic payment is far preferred, with PayPal being the dominant one. PayPal allows you to send money in two ways, one, via Goods and Services, is intended for commercial exchanges, and the other, Friends and Family, is meant for non-commercial transfers like splitting rent, repaying someone for dinner, or giving a gift. PayPal charges seller fees for G&S. There are no fees for F&F if paid by bank transfer, but the sender pays fees for F&F if the fund source is a credit card.

F&F is widely used to sell knives against PayPal's Terms of Service because it allows the seller to evade PayPal's fees and because a tax law change two years ago now requires payment processing companies like PayPal to issue and report 1099 forms each year for people receiving G&S payments. Theoretically we were always supposed to pay taxes on net income received like this, but no one did it. It's a hassle because it requires you to keep a log of your collection inventory acquisition dates and cost basis so you can file the transactions on your taxes. Falling to keep track would mean the feds would assume ALL the reported income was net profit and would dramatically increase the tax burden from it, since you were not able to document the cost of goods sold.

However, using F&F to accept payments for knives sold is tax evasion and also against PayPal's ToS, hence, it's also common to see people who do not accept PayPal, as many have had their accounts shut down for selling goods and requesting payment by F&F.

Taking payment by G&S is not entirely without risk, though, as PayPal has vague policies that are sometimes arbitrarily enforced against transactions where knives are sold. So it's a matter of something that is DEFINITELY against their policy (misuse of F&F) versus something that is not against their policy but which could be arbitrarily treated as though it was with no explanation or recourse. However, they're are also plenty of examples of sellers who had to resort to seller protection and were covered when someone who had used F&F would just be out of luck.

That being said, personally I price and request for G&S, but if people pay me by F&F, I don't refund and have them pay by G&S, I just ship them their knife. It's only against policy to request F&F payment for commercial transactions. If people pay that way even though I said to do it by G&S, I feel like I did my fair part.

In terms of after the sale, you need to ship promptly. Ideally you'd include in the sale post when you can ship and how. This should usually be same or next day of payment clearing, but if you're going out of town or something, as long as you're up front in advance about it, it's fine.

You can get free Priority Mail boxes from the USPS sent directly to your house at no cost. The small flat rate boxes generally work well for most folders unless the knife box is too big (small flat rate box is 1-5/8" tall on the shortest dimension). Koenigs don't fit, and Hinderers are a bit tight. But what I actually prefer now is the small priority box. Not the small flat RATE box, but the 1096L box that is 9-7/16" x 6-7/16" x 2-3/16".

The reason is that these will comfortably fit almost all folders in their factory box and more importantly, they will go Priority Mail instead of flat rate, which means the actual package weight will go on your receipt. Since weight doesn't matter for flat rate, it doesn't go on when you use a flat rate box. That's useful in case a buyer claims he received an empty box, because you can prove you sent a box that weighed enough to have the knife in it, and each post office scan actually has the package weight at scan, although the Post Office has to find that info, you can't. But if they have to investigate a lost package, the weight tracking can prove it was lost in transit and not after delivery.

You also need to insure for the full replacement value unless you are willing to eat the cost of refunding the buyer in the event it's lost or stolen before receipt. If it's lost, you refund immediately and hash out out with the insurance, don't make the buyer wait for the insurance claim, which can take a while.

The absolute best insurance, though, is securely taping all edges of the box and padding heavily with bubble wrap or packing paper.

Wow. This is such a great help! Very much appreciated.
Can't thank you all enough. I'm excited, just picked up some boxes from the post office on the way home from work.

 

[madcap_magician]

Wow. This is such a great help! Very much appreciated.
Can't thank you all enough. I'm excited, just picked up some boxes from the post office on the way home from work.

Some additional thoughts:

1. Take clear pictures against neutral backgrounds in natural light where the background color or fluorescent lighting won't distort how the knife looks. Plain, light-colored wood, light-colored carpet, clean cardboard boxes, a light-colored and unpatterned tablecloth, etc.

2. For fixed-blade knives, at least one picture of the left side and one of the right, with the same of the sheath(s), if any. If it is a larger fixed-blade knife, then the same, but pictures of just the blade and maker's mark, if any, and just the handle, as cell phone camera pictures from far enough away to get 12"+ knife entirely in the frame may be too far away for finer detail. If the knife has markings, filework, liners, or a tapered tang, a shot of the spine is also in order.

3. For folding knives, the same as fixed-blade knives, plus a picture of the tip of the blade centering when closed and the lockup when open. If it's a traditional slipjoint, then show the backspring when open and closed as well as in the half stop position if the knife has one.

4. For all knives, text description and close-up photos of any physical damage or imperfections, e.g. voids or cracks in natural handle materials, rust spotting, nicks in the blade, etc.

5. Description of the knife. Some knives are very common and the dimensions and materials are easily found, but many are not, or there are many variations of the same knife, so you need to specify exactly what is for sale. This would include things like blade length, overall length when open, blade finish, blade material, handle materials, and a picture/description of everything that comes with it, e.g. if it's a Benchmade, do you have the factory box and paperwork and the little satin bag; if it's a CRK, do you have the box, birthday card, wrench, grease, etc.

6. If you use PayPal, minimize your risk of having your account frozen and funds confiscated (even if you use G&S like you're supposed to) by immediately initiating transfer of funds to your bank account any time you receive money. You don't want funds sitting in your PayPal account under any circumstances - if PayPal shuts you down for any reason, they will freeze your access to any funds in your PayPal account.

7. Never mail a knife in a padded envelope or mailer bag. Just no. They are the most prone to being damaged in transit and easiest to steal from. Always a securely taped box with padding sufficient that there's no package shifting if you shake it.

 

[jlauffer]

Electronic payment is far preferred, with PayPal being the dominant one. PayPal allows you to send money in two ways, one, via Goods and Services, is intended for commercial exchanges, and the other, Friends and Family, is meant for non-commercial transfers like splitting rent, repaying someone for dinner, or giving a gift. PayPal charges seller fees for G&S. There are no fees for F&F if paid by bank transfer, but the sender pays fees for F&F if the fund source is a credit card.

F&F is widely used to sell knives against PayPal's Terms of Service because it allows the seller to evade PayPal's fees and because a tax law change two years ago now requires payment processing companies like PayPal to issue and report 1099 forms each year for people receiving G&S payments. Theoretically we were always supposed to pay taxes on net income received like this, but no one did it. It's a hassle because it requires you to keep a log of your collection inventory acquisition dates and cost basis so you can file the transactions on your taxes. Falling to keep track would mean the feds would assume ALL the reported income was net profit and would dramatically increase the tax burden from it, since you were not able to document the cost of goods sold.

However, using F&F to accept payments for knives sold is tax evasion and also against PayPal's ToS, hence, it's also common to see people who do not accept PayPal, as many have had their accounts shut down for selling goods and requesting payment by F&F.

Taking payment by G&S is not entirely without risk, though, as PayPal has vague policies that are sometimes arbitrarily enforced against transactions where knives are sold. So it's a matter of something that is DEFINITELY against their policy (misuse of F&F) versus something that is not against their policy but which could be arbitrarily treated as though it was with no explanation or recourse. However, they're are also plenty of examples of sellers who had to resort to seller protection and were covered when someone who had used F&F would just be out of luck.

That being said, personally I price and request for G&S, but if people pay me by F&F, I don't refund and have them pay by G&S, I just ship them their knife. It's only against policy to request F&F payment for commercial transactions. If people pay that way even though I said to do it by G&S, I feel like I did my fair part.

In terms of after the sale, you need to ship promptly. Ideally you'd include in the sale post when you can ship and how. This should usually be same or next day of payment clearing, but if you're going out of town or something, as long as you're up front in advance about it, it's fine.

You can get free Priority Mail boxes from the USPS sent directly to your house at no cost. The small flat rate boxes generally work well for most folders unless the knife box is too big (small flat rate box is 1-5/8" tall on the shortest dimension). Koenigs don't fit, and Hinderers are a bit tight. But what I actually prefer now is the small priority box. Not the small flat RATE box, but the 1096L box that is 9-7/16" x 6-7/16" x 2-3/16".

The reason is that these will comfortably fit almost all folders in their factory box and more importantly, they will go Priority Mail instead of flat rate, which means the actual package weight will go on your receipt. Since weight doesn't matter for flat rate, it doesn't go on when you use a flat rate box. That's useful in case a buyer claims he received an empty box, because you can prove you sent a box that weighed enough to have the knife in it, and each post office scan actually has the package weight at scan, although the Post Office has to find that info, you can't. But if they have to investigate a lost package, the weight tracking can prove it was lost in transit and not after delivery.

You also need to insure for the full replacement value unless you are willing to eat the cost of refunding the buyer in the event it's lost or stolen before receipt. If it's lost, you refund immediately and hash out out with the insurance, don't make the buyer wait for the insurance claim, which can take a while.

The absolute best insurance, though, is securely taping all edges of the box and padding heavily with bubble wrap or packing paper.

Just an fyi, I dropped off 2 small flat rate boxes at the PO this week, and the receipts included the weight.

 

[madcap_magician]

Just an fyi, I dropped off 2 small flat rate boxes at the PO this week, and the receipts included the weight.

Oh weird, several times mine have not. Good to know.

Another tip:

1. Get the e-mail receipt from the USPS as well as the print one. That way if you ever need the documentation, it's just sitting in an e-mail subfolder, vs. having to keep track of the little paper receipt forever.

 

[straztech]

Some additional thoughts:

1. Take clear pictures against neutral backgrounds in natural light where the background color or fluorescent lighting won't distort how the knife looks. Plain, light-colored wood, light-colored carpet, clean cardboard boxes, a light-colored and unpatterned tablecloth, etc.

2. For fixed-blade knives, at least one picture of the left side and one of the right, with the same of the sheath(s), if any. If it is a larger fixed-blade knife, then the same, but pictures of just the blade and maker's mark, if any, and just the handle, as cell phone camera pictures from far enough away to get 12"+ knife entirely in the frame may be too far away for finer detail. If the knife has markings, filework, liners, or a tapered tang, a shot of the spine is also in order.

3. For folding knives, the same as fixed-blade knives, plus a picture of the tip of the blade centering when closed and the lockup when open. If it's a traditional slipjoint, then show the backspring when open and closed as well as in the half stop position if the knife has one.

4. For all knives, text description and close-up photos of any physical damage or imperfections, e.g. voids or cracks in natural handle materials, rust spotting, nicks in the blade, etc.

5. Description of the knife. Some knives are very common and the dimensions and materials are easily found, but many are not, or there are many variations of the same knife, so you need to specify exactly what is for sale. This would include things like blade length, overall length when open, blade finish, blade material, handle materials, and a picture/description of everything that comes with it, e.g. if it's a Benchmade, do you have the factory box and paperwork and the little satin bag; if it's a CRK, do you have the box, birthday card, wrench, grease, etc.

6. If you use PayPal, minimize your risk of having your account frozen and funds confiscated (even if you use G&S like you're supposed to) by immediately initiating transfer of funds to your bank account any time you receive money. You don't want funds sitting in your PayPal account under any circumstances - if PayPal shuts you down for any reason, they will freeze your access to any funds in your PayPal account.

7. Never mail a knife in a padded envelope or mailer bag. Just no. They are the most prone to being damaged in transit and easiest to steal from. Always a securely taped box with padding sufficient that there's no package shifting if you shake it.

Welp, wish me luck. Just posted the knife for sale. Thanks to you and jlauffer for the assistance and tips. Very much appreciated. If you do see the listing, please feel free to send me more tips or critiques. They are welcomed.