I want to start an online self defense buisness?

Discussion in 'Making Money Online' started by jemsander, Feb 3, 2013.

  1. jemsander

    jemsander
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    How do I start and what about taxes. I dont have alot of money for inventory, so if I just post a picture of a product , then they buy it and I use the money to buy it and send it to them ? will that work. I just want to start a small online buissness. Nothing huge. What do i have to be concerned about ? taxes,irs ext ? legal liability ?
     
  2. daytrader

    daytrader
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    I do believe the idea is new. What kind of product are these?
     
  3. TimeRider

    TimeRider
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    jems, Your idea seems like a broker. You use a customers money to buy the item they want. The customers may not like this if they know about it.
     
  4. PS9

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    What you're doing, or want to do, is called drop shipping. You make a website (basically an affiliate for the warehouse you get your products from), you raise the price a bit, and when an order comes in you forward the order and take your cut. Your cut is the price difference between what the warehouse charges and what you charge; in the drop shipping process the warehouse will ship the item and take the return.

    It's an easy system, it's done by probably millions of people on their own websites to eBay and Amazon, BUT you aren't going to make a bucket of money doing it. I did it for a while with adult novelties but basically since the barriers to entry are nothing more than a few hours of time making a website, everyone and their grandma is competing for the sale. What you end up with is a profit margin of a few cents per item, while the warehouse guys make out because they get their money and free advertisements/customer support from the drop shipper.

    If you want real money, and a more secure business, you got to deal with your own inventory. What you could do is initially drop ship as market research and eventually you'll know what sells and what doesn't. You can then purchase what sells in bulk and increase your margins. Just don't expect to make more than a bit of extra cash with drop shipping and remember, if your warehouse goes out for whatever reason like they quit operations, they ban you, you just lost your business. You're basically an affiliate, or sales person, of the warehouse.

    Legally it's the same thing as any business, you got to pay your taxes, I'd recommend incorporating, etc... but that's an entirely different topic that you should read up on. In the meantime just search Google for "drop shipping" without the quotes. Be aware, do NOT pay for any list, do NOT pay for any site, they are scams. Real drop shipping warehouses don't require membership fees and what not; they don't have to because they make their money anyway. -- If you want to check it out the site I used to drop ship from was sextoyclub.com, a legit drop shipping warehouse should have things like product feeds which you can use to automatically update inventory and products on your website.

    Beyond that, it's probably good to learn something about web design. You can list products on eBay and drop ship them but with eBay fees you'll be making so little money it's probably not worth the time. You should make your own website, use something like ZenCart as it works with most CSV product feeds, and you can automate that process much better. If you make the right website it can be a mostly automated process where orders are sent to the drop shipper automatically; you'd still have to do customer support for returns and such.
     
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  5. Rocky

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    The chances for this to successful are less. Since there are so many e-tailers it is difficult to stand out from the crowd. Many established online shopping sites offer all sort of products with Cash On Delivery. So the customer pays when they receive the product. This is something many e-shoppers expect so if you ask them to pay upfront it won't be well accepted. About the taxes, well you can't do without them you have to pay wherever you are liable.
     
  6. Fergal

    Fergal
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