You started selling records to fund the hobby — and now there are fees, forms and questions about whether you owe taxes. Take a breath: the basics are manageable, and the single most useful habit is keeping clean per-sale records from day one.
Discogs' published seller fees vary by seller level and membership; the standard level is commonly cited around 8.5% on the item price, and payment processing adds roughly 3%. If you ship, you pay actual postage and packing costs. Read the current Discogs fees page before pricing — rates change.
A practical habit: always include the buyer-paid shipping in your fee calculation, because fees can apply to it depending on your membership level. When in doubt, over-estimate fees.
Per sale: date, item, purchase price (your cost), sale price, buyer-paid shipping, actual shipping cost, fees paid, and net. Per inventory: purchase price and listed price of records you still hold. That is 90% of what you need for a tax summary.
Keep receipts for collection purchases and shipping labels — they are the documentation behind your cost and expense numbers. The report tab on this site totals exactly these figures from your entries.
US sellers: income from marketplace sales is generally taxable; payment platforms issue 1099-K above IRS thresholds, and thresholds have changed across tax years. Your deductions can include the cost of goods sold, shipping, packing supplies and marketplace fees — which is why per-flip records matter.
This is not tax advice. The reliable move: keep the records, run the summary, and file with a tax professional or reputable software for your specific situation. The tool here makes the records part easy.