Many people know that drop shipping can lead to an extra income, but it can also supplement your current income and become your full time business. Another problem of direct shipping is that you may sell the product only to find out that the supplier is sold out. It's always best to research the company before you do any business with them. These are questions that you'll need to have answers for before doing any sort of business with any company. In fact, before deciding what to sell, locate products that are usually in stock and easy to ship. Look for wholesale companies that require a business tax ID #. This is not a requirement for some true wholesalers, but it helps to identify them as a true wholesaler. If you don't have a tax ID, and want to open a drop ship business, I would advise you look into it, it may help you get the products at a lower price. This requirement will help you get a good refund as well from the IRS as you will be able to submit business expenses that would otherwise be a loss. Another thing, you could be audited by the IRS if you are making extra money and not reporting it. A good tax accountant is a good investment or you can ask your tax preparer for advice before hiring an accountant. I pay a small monthly fee to my tax accountants and they handle my taxes for me including electronic filing. Any back-up paperwork requirements that the IRS might ask for is easily obtainable from them as well plus they have the know-how on what the best procedure is when there is any filing issue. Case in point: The IRS had no record that my tax preparer had filed an extension for 2015 as more paperwork was needed to complete the filing and had not arrived in the mail yet at the regular filing date. However months later when I got a letter from the IRS stating that I owed 6 months of late fees totaling just under $3000 I was able to get copies from my tax preparer of certified mail receipts (both sent and received stamped copies) and a copy of the extension filing documents that were sent. You see, even the IRS sometimes have administration problems, they too have staffing issues like new staff training and staff who are out sick, etc. In this case having a tax preparer on your side saves a lot of grief when things like this happens. Believe me, it is a good business investment and a tax write-off too. Note: Most cities do not require a business tax ID if you never stock inventory which is the case with drop shipping that is stocked at the vendor and shipped from there to the customer. OF course you will run into pitfalls and set backs when starting a home based business using a direct ship service from a wholesale company. As with any other business, you'll be faced with times that may make you want to give up, however, good hard work and steady research can make your business successful. Some suppliers offer online forums that allow their users to communicate sales tactics and other discussions of their products. Hang around a while and you may learn a lot about that particular company. My suggestion is to use a company that everyone else recommends as this would be a reliable option. SaleHoo provides FREE Online Seller Training. They cover both EBay and Amazon (FBA) Fulfilled By Amazon as well as assist online retailers. You will be able to access training on website creation and promotion, importing and shipping as well as product sourcing, etc. To learn more click this link here: =====> http://sequoia.rurl.me/t/Salehoo Researching wholesale supply businesses before you buy. Finding a good drop shipper can be a task in itself. Finding the products that others are selling on auction sites such as eBay will give you a pretty good idea as to what you can make for a profit and what will cause you a loss when running your drop ship business.
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AuthorHi! I'm Mary - Nice to meet you! ~ My focus here is Internet Marketing; Business Ideas and Tips regarding dropshipping using Amazon.com; Ebay and for Online Retailers to expand their businesses using this method of supply without carrying any inventory. Everything is handled seamlessly from supplier to customer and Free Shipping suppliers are highly recommended! ArchivesCategories |