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Ebay Amazon droppshiping useless in the UK?

Discussion in 'Dropshipping & Wholesale Hookups' started by brethg, Sep 16, 2016.

  1. brethg

    brethg Registered Member

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    Hi,
    So I have been playing around with this Ebay Amazon droppshiping malarkey, in fact using Zennoposter I have managed to automate the whole bloody thing from getting products, listing products to automatically repricing and completing sales. All i do is deal with the odd return and answer occasional question. Sounds great right? Time to scale up you might say....

    Well how? At best I make 10% profit on each item sold, I average more like 8-9% but lets call it 10 for simplicity. In the UK you have to VAT register at £82,000 turnover which at 10% is 8k a year profit. Not exactly a living wage. SO i figure that's ok. With paying VAT and reclaiming VAT i should still be able to make money Ill just have to about double the volume of sales....
    However having looked into it, no one bloody selling items on Amazon or even Amazon them selves charge VAT so it can not be reclaimed which pretty much busts the whole idea.
    Am I wrong?

    And also, if I was to switch to operating an account in the US it would of course be out of UK VAT scope but what US Tax implications would there be and would the USA want to/ be able to tax me as resident in the UK but virtually operating an ebay account in the US?

    Thanks in advance.
     
  2. dogo69

    dogo69 Registered Member

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    usa wont be reproted till 20k a year per acct
     
  3. brethg

    brethg Registered Member

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    20K profit or turnover?
     
  4. orgut

    orgut Junior Member

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    Can they know your profit?! I think not... definitely amount of money received...
     
  5. brethg

    brethg Registered Member

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    So again not very sustainable, the only approach I can see would be to do all countries. France, Germany, Spain ect but keep below the thresh hold of each. Being based in the UK any foreign sales would be out of UK VAT scope.
     
  6. evadrable

    evadrable BANNED BANNED

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    You could allways make a point of delivery address so it has to go somewhere before it reaches you and that address has some vat cost?
     
  7. ThatSEO

    ThatSEO Jr. VIP Jr. VIP

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    Isnt' VAT added on the cart?


    Also - Thought about separating your company into different ones?

    1 x Sells hair stuff
    1 x dogs?

    As long as they're clearly separate, you should be OK
     
  8. evadrable

    evadrable BANNED BANNED

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    if it has to reach somewhere before you it could be your cart and you could add the vat?
     
  9. brethg

    brethg Registered Member

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    VAT is per individual and not per business, thus even if I had 20 companies it would still be the same VAT limit. How would it help to reach somewhere before me. I would have to reclaim VAT from myself which wouldnt help in any way
     
  10. ThatSEO

    ThatSEO Jr. VIP Jr. VIP

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    I"m not 100% sure that is correct. I"m sure you can have one LTD, A sole rader and a partnership. As long as they is a clear different between the businesses, its different
     
  11. brethg

    brethg Registered Member

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    • Thanks Thanks x 1
  12. GoldMiner1302

    GoldMiner1302 Newbie

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    How did you automate it? what is Zennoposter?
     
  13. brethg

    brethg Registered Member

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