Hi any help would be much apprieciated.

The reason I want to do this is because I came across a drop ship site which got me interested but further investigation tells me not to trust these so called sites.

So I am thinking that i will set up my own site selling maybe equestrian goods or DVD's games, the site is not a problem but what i have to do to set up is.

1. To use a wholeseller do i need to set up a business?

2. If I set up a business will it affect my current full time employment in terms of paying tax?

3. Are there dodgy wholesellers out there and if so is there a respected list?

Thank you in advance anyone who may be able to help.

Hi Barry,

Welcome to Wholesale Forum

We are assuming you are new to the resale business, the web is indeed infested with many websites trying to get your money for worthless services. Not all services are worthless, and distinguishing them isn't easy. We will try to give you a useful summary:

1. Avoid any site claiming to offer you a website in a box, pre-filled with products. Those kind of sites used to work back in 2000. Today the Internet is a very different affair. In most cases, those sites offer products above online retail prices, while in other cases the margins are so tight (3-10% at best) that you couldn't even cover eBay fees (15% if you include PayPal fees) and search engine optimization costs (15%+). It's a no go dead zone.

2. Avoid buying branded goods from China, and from any country that doesn't have a solid legal system in place. Counterfeits in such countries are rife, and selling them can get you into serious trouble with the law in your country.

3. Making money from resale is not difficult, but it involves a long learning curve. There are services, free and non, that can help you shorten that learning curve. Succeeding mainly involves what are known as the 5 Ps: Product, Price, Place, Promotion, People. Have a product that sells, which you can buy at the right price, and that you can sell in the most appropriate setting/place, and that you can promote and supply cost effectively through the aid of the right people.

To put it simpler, if you sell online, your place is the world wide web, a jungle of sellers all competing against each other. Therefore, either you sell unique products that no one else is selling, or alternatively you must have access to rock bottom prices that allow you to earn enough margins to reinvest in promotion (seo, pay per click, better eBay exposure and so on).

To answer your specific questions:

Quote:

Originally Posted by BarrySharp

1. To use a wholeseller do i need to set up a business?

In many cases, yes. You will need to prove that you are a reseller. In other cases, no. Some wholesalers are willing to supply you without proof of trade. You can demonstrate you are a reseller by registering a Ltd company, or by first purchasing from wholesalers who do not require proof of trade. You can then ask these wholesalers to write references to pass on to those wholesalers who require proof of trade.

Quote:

Originally Posted by BarrySharp

2. If I set up a business will it affect my current full time employment in terms of paying tax?

Could you clarify what you mean by "affect"? You will need to register as a self-employed with HMRC, and pay taxes on the profits you earn from your trading business. Your employment is not affected (although you may want to check what your employment contract says about allowing you to be involved in other businesses while working for your current employer). As a self employed, you will need to file a Self Assessment return at the end of the accounting year (HMRC will notify you about the deadlines, and will also send you information leaflets on how to complete your Self Assessment tax return).

Quote:

Originally Posted by BarrySharp

3. Are there dodgy wholesellers out there and if so is there a respected list?

There are thousands upon thousands of scams out there. Many lists do not care who they include in their database, as long as they pay money to advertise. Other lists are however extremely useful, and they are geared towards buyers interests. For the UK we strongly recommend esources, you won't find a better UK wholesalers list anywhere. You can find a review of wholesale directories at https://www.wholesaleforum.com/discu...nstantly-2392/

Thank you for that detailed reply......To confirm point 2 - could I have to pay more TAX on my wages from my current employer if I have registered as self employed. (I always get confused as to when I have to use effect or affect)

Hi......Ok I have looked at the esources site and am prepaired to pay £25 to try it out for a month.

Are there any other hidden costs that you know of, like the wholesellers do you have to pay them also to join them?