If I started a business online, would I be able to sell items I haven't paid for yet?

Discussion in 'Starting a Business' started by jjohnson2485, May 7, 2012.

  1. jjohnson2485

    jjohnson2485
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    If I started a business online, would I be able to sell items I haven't paid for yet?
    For ex. I put a box of cereal on my website for a price, someone buys it and I use that money to go to the store with the cheapest price and buy it. Is this legal or do I need inventory/stock to sell things?
     
  2. JohnBush

    JohnBush
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    There are several ways that you should consider before you start an online business like creating your own website to easily promote your sales and products online and to get more potential customers.
     
  3. elina

    elina
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    you can sell inventory without settling the payment. you can settle the payment through some technique called third party transfer. you need to have authorized vendor and he is able to supply the material on time than only you can able to sell without clearing the payment settlement.


    companies like Nichesuite provides you the payment gateways integration. this technique makes you easy payment.
    Try Nichesuite
     
  4. JBMedia

    JBMedia
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    You can also consider dropshipping. You will have a limited amount of variety to sell from, based on the dropshipper you choose. But then when the purchase is made, you get whatever extra you set the amount to from the amount the dropshipper is selling it to you.
     
  5. T Klinkle

    T Klinkle
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    OP, absolutely. Plenty of businesses rely on sales to generate business.

    Just make sure that you are 100% sure that you can deliver!
     
  6. sigma

    sigma
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    That's legal, many people are doing in that way. However, you need to consider the time taking, it might take longer time and you gotta find the trust seller to ensure the goods shipped to your customer is quality product
     
  7. Navida

    Navida
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    Yes, you can do it as it is legal and come under dropshipping category. But for this you world ensure that the commitment you have done like for time and days for delivery, product quality etc should fulfill.
     
  8. firstchoicecar

    firstchoicecar
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    That is possible, Just to make sure that the transactions you are dealing with is in good condition, in terms of price, delivery etc.
     
  9. Mark T

    Mark T
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    One of the best ways to start a business right up in the eyes of customers are quick responses. As sigma said, it takes some time and that might affect the productivity that you could have when you have an inventory of the product you are planning to sell.
     
  10. gogreenbusiness

    gogreenbusiness
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    Before you start selling or setting up a business like that, you gotta check your agreement with your supplier. If possible engage in a consignment basis and ask for some terms. In this way you can have enough time to sell products that you haven't paid yet.
     
  11. sigma

    sigma
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    As per the information from the thread, there is no agreement or partnership with the supplier, the thread opener just make a website, copy a product from other site and then sell in higher price. Once s/he get order, then s/he will paste order on those site s/he found the product
     
  12. printingray

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    It also depends upon the product popularity. For example if you are going to sell commonly used products like custom stickers you can put it everywhere as its a multipurpose product and can be search everywhere. Vice verse, if you are going to sell a particular product used for specific purposes, then it is hard to find the exact place to sale it. If you have your own website, then increasing your social relationships and getting consumer confidence may help to increase your sales.
     
  13. kailamilos

    kailamilos
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    You can do that but you have to set your customer’s expectation. How soon will you be able to ship the product?
     
  14. gogreenbusiness

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    I see... well i think the seller can still sell products, but had to face too much risk. The major potential problem i can see from this scenario is the availability of product. Since his/her product is never on his/her hand, there will be chances that the product may not be available and order will not be delivered. :(
     
  15. sigma

    sigma
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    Yes, that's the major problem and another issue can be the quality of the goods if s/he never deal with the seller before.
     
  16. Sonia Whitehorn

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    There are procedures in place depending on the amount of money you turnover and registeration i.e. VAT. If you go down this route make you are adhere to procedures and make sure you deliver the product in good condition and delivered on time to the buyer.
     
  17. MartinLedley

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    It's a perfectly legitimate tactic but comes with more risks, as there may be times the product you've just sold is out of stock at where you normally get it, or costs more than you originally thought.

    You may have to add extra time for delivery as well, because you simply never know what kind of hold ups there might be in attaining the item. Personally I'd never do it that way because of those uncertainties, but plenty of people do.
     
  18. jjohnson2485

    jjohnson2485
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    Thank you for all the responses. My business is a grocery delivery service where people go online buy a product and I find the cheapest price and deliver. Where I am from, I have 7 grocery stores all in a vicinity that is manageable to drive to and 2 wholesale clubs that are near by. I think I'll be ok with the products being available. Right now I am just getting everything together to get this started around August.
     

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