Should i register as a business?

kms26

Pembroke wrote: »

If you are only selling one or maybe a few type of items from the dropshippers consider holding a small stock of the items on your own premises (five or so, depending on your level of sales should cover it) then if you ever have a problem you simply ship one of the ones you have and order another from the dropshipper to deliver to you. This will only really work on an emergency basis though, as to operate in this way all the time will increase your costs.

That is a good idea but it isn't really viable for me, but i might look into that.

JimmyTheWig

kms26 wrote: »

I think i sort of knew that when i was typing but just need a second opinion. My husband is Self Employed and obviously registered, do i need to do it in my name or could he?

It really needs to be the person doing the selling (and whose name is on the eBay account, and who has the agreement with the dropshipper and who makes the homemade cards) who should register.

But also, importantly, the person who is registered is the one who is liable for the tax. Your husband will already be earning over the threshold, so any earnings from eBay would then be taxed.
If you register then, as you aren't earning elsewhere and assuming these earnings won't amout to thousands of pounds a year, there will be no tax to pay.

Registering with HMRC is relatively easy. They are actually really quite friendly and helpful [not how you might imagine]. At the end of the day its in their interests that you do things right, so they're going to help you when they can.
It will mean doing a tax return, but again that's not rocket science.

JimmyTheWig

Also when registering as self employed you need to consider your National Insurance contributions.
If you aren't earning much (as it sounds like you won't be) then you can get an exception from this.

But in some cases it is worth paying the contributions. It means you may be eligible for Maternity Allowance, Incapacity Benefit, etc later on.

soolin

I tend to get a bit paranoid about drop shippers but are they in the UK and what sort of tracking numbers have you got and what does tracking show when you input the details?

Strapped

I strongly suggest you read the following:

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073875654

before you do anything else

Hammyman

kms26 wrote: »

I only started making cards last year and a few weeks ago someone asked if i would be putting them on ebay to sell them, i have only sold about 5 on ebay and didn't know that i was meant to register that with ebay until last night!!

i will ring HMRC i think :cool:

"Think?"

Must.

milfhunter

texranger wrote: »

9/10 majors ebay sellers will be using dropshippers,

a majority of online stores use dropshippers. i have used 1 for one of my sites for the last 5 years and have had no problems, goods always recieved within a couple of days even in that snow

Bit of a sweeping statement don't you agree?

I know a quite lot of sellers will use fulfilment services but that is very different to 90% of sellers drop-shipping.

Do you have any further reading on this 90% claim that you make, because I am genuinely interested!

soolin

milfhunter wrote: »

Bit of a sweeping statement don't you agree?

I know a quite lot of sellers will use fulfilment services but that is very different to 90% of sellers drop-shipping.

Do you have any further reading on this 90% claim that you make, because I am genuinely interested!

No drop shippers in any category I sell in as it just wouldn't be posisble- far too many darned 'private' sellers though with more stock than I have and some even with company names.

Strapped

I'd be very surprised if there was 90% dropshipping. Clearance or liquidated stock makes up a good chunk.

Oliver14

texranger wrote: »

9/10 majors ebay sellers will be using dropshippers,

a majority of online stores use dropshippers. i have used 1 for one of my sites for the last 5 years and have had no problems, goods always recieved within a couple of days even in that snow

Total rubbish. The bigger stores sell a lot of clearance stock. The rest will be using fulfillment services which are totally different contractually and organisationally compared to droppshipping.

The point I was trying to make to the OP was the problems and risks associated in small scale drop shipping. It can be pretty risky for the small sellers. They can also be risky for bigger sellers also. A very large media seller went under on ebay last year due to failures of the dropshipper. It happened very quickly and publically and the seller had no control on the outcome.

I stick by my original statement droppshipping can be a very risky business for small scale sellers.