If you want to build a serious business by selling on eBay, you need to work with 'real' wholesale suppliers and 'real' dropship wholesalers (a.k.a. wholesalers who drop ship) every single time. When you're able to get wholesale products at real wholesale prices, this allows you to achieve the highest profit margins in your eBay sales.
However, 'real' wholesalers will only work with you if you're a 'legal' retail business. That means your eBay business has to be registered, and you have to obtain your Sales Tax ID. Getting legal is a very simple, inexpensive process; and the payoff is that you can get buy directly from wholesale suppliers and dropshippers for the best possible profits.
Many unethical people advertise in the search engines, claiming to be wholesale distributors, drop shipping wholesalers – even 'eBay suppliers'. They will tell you that you don't need to be a legal business or get a Sales Tax ID to buy from them at wholesale prices. These people are middlemen and 'wholesale' scammers. Their main purpose is to get between you and the 'actual' wholesale supplier, bump up your 'wholesale' prices, and eat away at your profit margins until you can't afford to sell at a competitive price and still make a profit on eBay.
Don't waste your time with 'fake' wholesale suppliers. Take the necessary steps to make your business of selling on eBay a legal one. It will save you from countless scammers and open the door for you to buy 'real' wholesale products from 'real' wholesale suppliers and dropshippers.
In the above video, Chris Malta explains in more detail about this topic. Watch the video and ask your questions in the workshop for the Q&A session. No question is too small.
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Welcome everyone! This workshop is a little different this month. We've put a video together for you to watch. This one is short. If you start by watching the video, then you can read the content below the video. Then, ask away. I'm sure you'll have many questions that I'll be delighted to answer.
The video is streamed through Youtube. It depends on your internet connection and the type of computer how well it will play. I recommend selecting Pause and allowing it to fully download then select play.
At the end of the video, you will see options to watch other videos. For this workshop, we'll mainly be discussing tip #1, but feel free to watch them. There are 20 tips in total. We'll have more workshops later to discuss those tips in detail.
How you structure your business is your business. The key is to make sure that your accounting records and how you file your business papers match. Your eBay account can be whatever username you set up.
I would love to ramble on about my company, but I'd like to keep the workshop focused on this tip. I will provide information at the end of the session about where you can find out more about us.
Simply put: Worldwide Brands researches wholesalers to find the suppliers who will work with you as an eBay Seller. We then give you the direct contact to the wholesaler. We help you figure out what to buy, where to get it, and how to sell it.
Will the end result of dealing with you give me the information on Wholesalers, and what they offer. Do you check them out and make sure they are legit to buy from?
Yes, Harold69, we have a very in depth process of verifying suppliers to make sure they are legit to buy from. We connect you directly with the wholesaler. We also provide you with the education and research tools to help build your business. We do not supply or fulfill the products ourselves. It ends up as a direct relationship between you and the supplier which is the best way for you to grow your profits.
I live in California. I do not have any employees. I have obtained my DBA (fictitious business name) and a sellers permit. Do I need an IEN or am I good to go?
I too live in California, and would like you to expand on cynsellsstuff's thread. I have an EIN, but not the DBA or sellers permit. What exactly do I need to be safe?
Hey Aaronscottevans, I went to the California State website, they have a link which is titled (I think) CalGold. It gives you choices on what type of business you are starting up and a list of what you might need to do. Most of the items on the list obviously did not apply to me as I do not have an actual storefront, but I never did get a straight answer on whether I needed the EIN.
Great questions. Let's first clarify the difference between EIN, DBA , and sales tax (aka sellers permit)
EIN :
The EIN number is a US Federal issued number that's used for businesses who have employees. It has nothing to do with sales tax. It's used to report income Tax Withholding from employees' paychecks. A distributor will NOT want to know what that number is, if you have one.
DBA (Doing Business As) aka Fictious name This is a name that you submit for you company that applys more specifically to your niche. For example, your company name is XYZ solutions but for your online store you DBA as Gardening Accesory Galore . The wholesaler will want to know this as your DBA because this is what have the most relation to who you will sell their products.
Sales Tax id (aka sellers permit) In order to work with a GENUINE Wholesale Supplier, you DO need a State Registered Business Name and Tax ID. It has nothing to do with where you sell; it's who you BUY FROM.
REAL Wholesalers are required by law to keep your Tax ID on file and must have proof that YOU are a legitimate retailer. If you are working with someone who says they are a Wholesaler but they DO NOT ask for your Registered Business Name & Tax ID then there is a 99% chance that they are NOT a genuine Wholesaler!
If you do not have a Registered Business Name and Tax ID then do not worry. They are NOT that hard to get. Just contact your local County Clerks Office and they will direct you (usually to a State Website) where you can easily file online and be registered within a few days (and sometimes even quicker!)
Every state is different with their requirements. There are a few states that don't requires sales tax. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete.
It sounds like cynsellstuff that you've got what you need. An EIN is only required if you're wanting to form an LLC or corporation. If you're a sole proprietor then and EIN is not required. Consult your account and tax advisor on what the best set up for you is for your business.
Just so I understand correctly, Worldwide only connects potential buyers with suppliers? They do not supply anything other than information on REAL wholesalers?
Everybody is different on works best for them in setting up their business credentials. Our course teaches how to work with wholesalers and expand your business selling physical product online. It does not teach how to set up your business.
Worldwide Brands helps sellers figure out what to sell, how to sell it, and where to get it. We research wholesalers and verify they're legit. We provide you with the education you need to grow your business, and we provide you access to other sellers and experts who can help you grow your business. In addition, we have a market research tool that helps you analysis the demand and competition around a keyword.
Does that answer your question? If not, please clarify your question.
So if we use the sales tax ID to purchase wholesale products then we have to pay sales tax to the state. In turn, we would have to charge sales tax on ebay sales. I have noticed some internet stores only charge sales tax if the purchaser resides in their state, i.e., California. Is that the correct way to do it?
The sales tax id is required by the wholesaler so that they don't have to collect sales tax on the products they sell to you as a seller.
The responsibility for collecting the sales tax becomes the sellers at that point. The requirements for how you as a seller are responsible for collecting and paying the sales tax to the state are dependent on your state.
In general, the wholesaler sells you (the seller) a palette load of product (aka light bulk lot) then you sell the consumer your customer the product. If the consumer resides in your same state as you selling from then you are responsible for collecting the sales tax. If you're using a dropship wholesaler, then it can get a little more complicated. I recommend reading the workshop that Bev suggested.
WorldwideBrands.com provides instant access to the world’s largest database of fully verified eCommerce wholesalers.
For more information, visit http://www.worldwidebrands.com/ebayworkshops . For nearly a decade, WorldwideBrands.com's full-time research staff has had one exclusive objective: to find and qualify genuine wholesale suppliers that you can use in your home eBiz. Our wholesaler database is the result of those years of research, and we update it daily with new suppliers. WorldwideBrands.com Members have instant access to millions of quality wholesale products, and real-time market research with every product search. Check out our Free Preview at http://www.worldwidebrands.com/ebayworkshops and explore what’s available within our database.
Thank you very much for being here today, and thanks to eBay for providing this Workshop so that we could talk, and help each other learn more about becoming successful eBay entrepreneurs!
Thanks everyone for stopping by and for the great questions. This concludes the "How to Buy Wholesale Products - Wholesale Tip #1" workshop. Be sure to check the Workshop Calendar for upcoming workshops.
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