PDA

View Full Version : I need help with starting an e-commerce store



Alman
10-27-2009, 09:46 PM
Hi everyone,
I would like to to start an online store selling camping products, some products will be licensed products and some general camping stuff. Do i need to get a buisnes license or register a buisness name with my state also do i need to get some kind tax permit. Can i just create a website and start reselling product from a wholesaler.

vangogh
10-27-2009, 10:56 PM
I don't think you need any kind of license, though don't hold me to that. It might depend some on what specifically you'll be selling and whether or not you'll also be holding inventory somewhere.

As far as taxes are concerned it will also depend a little on the business. If you're going to be selling affiliate products then you won't need to collect taxes since the main company will. If you are selling products then you will need to charge taxes to at least some of your customers so you would need a tax id. It's easy to get and even if you don't need one I'd recommend getting one. It was a 15 minute phone call for me to get one and the tax id can be used instead of your social security number for many things.

Since you're reselling from a wholesaler I don't think you'll need a tax id, but again I'd still get one. I'm thinking you won't need a license either, but again don't hold me to that.

Harold Mansfield
10-28-2009, 03:52 PM
Hi everyone,
I would like to to start an online store selling camping products, some products will be licensed products and some general camping stuff. Do i need to get a buisnes license or register a buisness name with my state also do i need to get some kind tax permit. Can i just create a website and start reselling product from a wholesaler.

You can just start a website and start selling products.
What you have described is a basic affiliate site. Normally the whole-seller will get your tax info and report your payouts, and you have to pay taxes on them like any other income.

You don't necessarily need a business license, business name, that's up to you. That has more to do with your personal overall business preferences and tax structure. The site can just be registered in your own name.

You don't need a tax license to sell products via affiliate marketing.
You don't need to register with your state to sell products via affiliate marketing.

For the most part affiliates aren't responsible for any liabilities concerning the products and the whole-seller assumes all responsibilities for sales tax since the actual payment is made on their site.

Anyone can start an affiliate site.

If you were selling you own products, it would be a completely different scenario.

jfrutkin
12-24-2009, 04:37 PM
Before spending the investment and time to set-up an eCommerce store, you may want to try and sell a few products on eBay, to determine if there is sufficient demand. Selling a few products on eBay can also help you figure out price points for your products.

Best of luck.

Spider
12-24-2009, 08:53 PM
I don't know where you live, but your local government may well have an office that pulls together information from all government departments to hand out to people wanting to start a business. In Houston, Texas, it is called Houston One Stop. One telephone call will get them to send you, free of charge, a whole bunch of information about starting a business and doing it correctly. I found them extremely helpful.

If you are not in the USA, call your County Clerk, or equivalent. The County Clerk is usually part of the central court system and may even be officed at the county courthouse.

There is another magnificent source of official information that is available all over the world (yes, I have lived in many countries to know this) and a source that people generally never think of when they need official information - the Librarian at your local public library. Every library has a librarian and sometimes you must ask for them by title. (The librarian is not just anyone who works at the library - the librarian is like the CEO of that library. They are a wealth of knowledge and I have yet to meet a librarian that hasn't been one of the most helpful people you could ever meet.)

FABQuest
12-30-2009, 02:59 AM
Or you may need a license to run a business in your town or city. I did. I also needed a reseller permit for my state and will need to collect taxes on any in state sale. I report quarterly state sales tax and was required to drop $100 to open my tax account. If your collecting the funds through your site and your having product drop shipped that you have purchased this is your business.
Our state treasurers office had a very nice packet on everything one would need to start a biz. I structured mine under a corporate umbrella to insulate myself from any litigation. I'd get a PO box and a DBA as well. Keep the crazy's at bay.

Paper Shredder Clay
12-30-2009, 01:24 PM
I agree, I think it might be best to start on eBay and maybe setup a shop page there and if you do well then keep the eBay shop and create your own site. Otherwise be careful how you secure your eCommerce site.


Before spending the investment and time to set-up an eCommerce store, you may want to try and sell a few products on eBay, to determine if there is sufficient demand. Selling a few products on eBay can also help you figure out price points for your products.

Best of luck.

billbenson
12-31-2009, 04:24 AM
Using an auction house, which is what ebay is, as a test market for selling products via an online store makes no sense to me. The marketing is different, customer base is different, etc.

I'd research all of you competitors or companies selling similar products for strategy, price, margin, and anything else you can figure out. They are the ones you will compete against and if they aren't making money, you won't either in most cases...

FABQuest
01-01-2010, 02:12 PM
Using an auction house, which is what ebay is, as a test market for selling products via an online store makes no sense to me. The marketing is different, customer base is different, etc.

I'd research all of you competitors or companies selling similar products for strategy, price, margin, and anything else you can figure out. They are the ones you will compete against and if they aren't making money, you won't either in most cases...

Boy that's a whole nuther subject altogether but I agree with the above statement....to a point. Something I seem to be saying a lot around here....its product based.
A plus to the non ebay e-commerce biz owner, eBay's (PayPal also) fees have risen so high over the last few years you can now make good sales and better margins by NOT selling on eBay. Makes one's site competitive with the yellow monster from hell.

pete
01-02-2010, 04:29 PM
It's 2 months late, but here you go -

First, a location would help give a proper answer, but lacking that, I'll try to cover the bases.

If you are in one of the 47 United States that has a sales/use tax, you MUST register with the agency responsible. You are required to collect and remit sales taxes on any products sold by you and DELIVERED within in your state, regardless of where they were ordered from.

As mentioned, you may also be required to register / have a license from your city/town/borough/county/state - depending on where you are. A phone call to your whatever hall should get you specific answers.

If you are not in the US, there are any number of scenarios. In Canada or Australia you may need to register for collecting GST. In the UK or EU there is a threshold that is pretty high for a new business as far as paying VAT, but you should register your business, in any case.

Ebay CAN be a good place to start, but it can also be a place to lose money in a hurry. Be aware that many new sellers have their payments held for several weeks or until they develop some positive feedback, proving they actually ship orders. This can tie up your cash on hand quite quickly.

I will have at least one "ebay newbie" a week go crazy selling my dropshipped products, only to have them suddenly stop ordering, telling me their funds are held and they are in a bind because they have orders, but have no way to pay me to ship the orders. I try to warn them early on, but the rush of all those orders is too much to resist.

Good luck to you, if you have any specific questions, ask here, or PM me.