Internet Sales Tax & News for Diabetic Test Strips Sellers

eBay is working very hard to help stop the internet tax. Here is a message they sent out last week that everyone should read and respond to.

Internet Sales Tax

On July 1, a bill was introduced in the United States House of Representatives that would impose complex sales tax collecting requirements on internet retailers and entrepreneurs, including our eBay sellers. If passed, HR 5660, the so-called, “Main Street Fairness Act,” would require small online retailers to comply with varying and regularly changing sales tax rules and rates for thousands of tax jurisdictions, and to collect and remit sales taxes from each customer. This new sales tax scheme would be extremely burdensome and costly to small online retailers like you who have set up shop on the internet. A similar bill is expected to be introduced in the Senate as well. eBay is working very hard to stop this bill from becoming law, but we need your help.

Please join our effort to stop the passage of this anti-small business bill. In three minutes or less, you can sign this petition urging your lawmakers to protect small, online retailers by opposing new tax burdens.

Write Your Congressperson

Petitions are great, but nothing beats contacting your own congressperson.

If you know the name of your congressperson, just Google their name and you will get a link to their home page that has a form where you can email them and they also have fax numbers where you can fax them.


Be polite. The emails are read by staff and they just trash any weird or angry-sounding emails. The other ones get forwarded to the congressperson.  Don’t bother your Senator with this as it hasn’t gone to the Senate yet.

News for Diabetic Test Strip Sellers

In my newsletter a few days ago I had a Musing’s item about problems with selling Diabetic Test Strips.  And I warned that eBay was suspending sellers.  Finally I have the real scoop:

It turns out that there have been some folks selling stolen strips and selling strips with Medicare or pharmacy prescription labels on them.  The other trigger is sellin strips with short expiration dates. So follow these steps to stay out of trouble:

  1. If you suddenly sell a large quantity of strips you could trigger eBay’s fraud detection.  So if you have been selling small quantities and suddenly find yourself with a large supply just dribble them out slowly.
  2. If someone calls you with a large supply of strips to sell –be careful. They may be stolen.
  3. When buying strips be sure an check the expiration date.  Make sure there is enough time to sell all the strips before the date expires.
  4. Do not buy strips with Medicare labels. It is a crime to resell these.
  5. If a box has a pharmacy label you can remove it with goo gone or lighter fluid before selling it.
  6. Don’t buy or sell the Johnson & Johnson Brand as they will file a Vero complaint against you.

Follow these tips and you will be fine.  If you have any other tips or questions please leave a comment so we can share this will all readers.

Skip McGrath


  1. Thanks Skip for the info. I will sign the petition and send a letter to my rep.
    Also, I wondered if eBay would ever question the test strip thing. I knew it was just a matter of time before someone would screw it up.
    Don’t teach any more people about it. After you guys taught that program on test strips the prices dropped.
    You always are full of great and valuable content. One of the “good” guys and looked up to as a mentor.

  2. Ebay just put a restriction on my account. I sell test strips, I don’t sell very many maybe 6-10 boxes a month if I’m lucky. I bought the strips from individuals not companies. Ebay now wants documentation that I “own” the product and have the right to sell it before they will lift the restriction on my account. I really don’t know what to do.

    1. Author

      Hi Vicky – Whenever you buy test strips you should always give the person a receipt and keep a copy for yourself. It turns out that a lot of stolen test strips are being sold on eBay. People shoplift them and then try and sell them. So that is why they are hassling you.

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