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dropshipping 101?

Discussion in 'Dropshipping & Wholesale Hookups' started by criticalintent, Jun 22, 2010.

  1. criticalintent

    criticalintent Registered Member

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    hey guys,

    fairly interested in starting up a business that sells dropshipped goods.

    i am semi-knowledgeable on the subject, but craving more knowledge. can anyone direct me to some threads and or other websites that offer information on the subject?

    thanks.
     
  2. daowns

    daowns Newbie

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    I am interested in this as well. I found some results off google, but these are mostly just sites hawking ebooks. Insider tips would be greatly appreciated.
     
  3. mdmoney

    mdmoney Junior Member

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    Occupation:
    Teacher by day and now a black hat by night
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    US of A
    The first think you want to do is setup a business entity. An LLC works great for drop shipping and it is easier to do your taxes at the end of the year.

    I would suggest selling on Amazon before eBay. Amazon you pay a bigger selling fee BUT you do not have to pay per item like on eBay. You can see what is selling on Amazon and then transfer that into eBay.

    The only problem with giving away my list of drop shipping sites is it will take away from my profits. I did find a couple of sites by paying the hefty price tag to World Wide Brands.
     
  4. goawayplease

    goawayplease Regular Member

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    Most halfway decent drop-shippers want you to have a state resale/sales tax id number.

    You could set up a Delaware LLC(no managing sales tax), get an EIN from the IRS(free), and then look pretty legit to drop-shippers, plus have asset protection in case you get burned.
     
  5. goawayplease

    goawayplease Regular Member

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    Most halfway decent drop-shippers want you to have a state resale/sales tax id number.

    You could set up a Delaware LLC(no managing sales tax), get an EIN from the IRS(free), and then look pretty legit to drop-shippers, plus have asset protection in case you get burned.
     
  6. criticalintent

    criticalintent Registered Member

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    thanks for the replies, i'm trying to find a more beginners gist of dropshipping and all that. a depot of information! there's gotta be one of these somewhere.
     
  7. aamcle

    aamcle Registered Member

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    I'm in the UK so it may be different were you are but generally it sucks.

    There are a lot of people selling dropshiping rather than goods for you to sell - avoid them.

    Then there are suppliers who will ds for you BUT mostly they are selling on line themselves or via wife, brother ....... you will never get a competitive price.

    You will be told price isn't every thing and I agree but if your +20% then kiss it :(

    Getting a good reliable and cheap supplier is the key and they are a rare as hens teath,

    aamcle
     
  8. Tighearna

    Tighearna Registered Member

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    Occupation:
    Bokor
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    739 Bourbon St, New Orleans, LA 70116
    W/we ran an e-commerce site for a couple years before I decided to switch to IM. As has been said you MUST be legit before any REAL supplier will talk to you.

    An LLC was mentioned previously, for what it's worth our attorney and our cpa both told us to go with at least an S corp. From what they said an LLC does not grant the immunity that an S or C corp does. Bottom line on that is due diligence urges you to seek your own answer.

    Now from my personal experience, as a corporation the tax benefits are HUGE!!!! I personally think everyone should have a business. W/we don't pay retail for hardly anything and barely pay any taxes, almost everything is a write off.

    Your mileage may vary but I know we save annually more than tenfold what it costs to own the corp.

    The other recommendation I would make and full disclosure I AM NOT NOR HAVE I EVER BEEN associated with (other than being a client) with world wide brands. It is one of the best investments I made. They are a legit company and will help. It's worth the investment.