"When you guys order your products, how do you get it shipped to you?"
Prior to my retirement, whenever I purchased large lots from the USA, I always used UPS, yet the much hated UPS !
In most instances, it makes sense to use basic ground (economical) shipping. It gets to you within two or three days from most locations in the USA.
Brokerage fees ate not as bad as often suggested on these boards.
http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html
It is easy to make arrangements with USP to pay for taxes with your credit card as soon as the shipment has left the supplier, avoiding COD charges.
Or you can use the postal system. Not that much cheaper, definitely slower and not as convenient.
Prepayment by credit covers : taxes, brokerage fee, disbursement fee
It eliminates COD fees ($4.25).
When purchasing/importing wholesale you have to start thinking like big business. Those costs are just costs of doing business.
Time is important.
Merc, "cost of doing business", are very wise words. My cost of goods sold number is stupid low. Today's acquisitions run about $2 on my retail $100. Yeah, I paid $2 to sell something worth $100.
Where's the sign-up sheet!
Well, I schlepp wrecking yards in all weather. Sometimes -40C. Sometimes +40C. Today was cloudy, -10C, but it had snowed about 10cm. That is tough slogging getting through that stuff. Sitting in frozen cars. Working with bare hands. 10K toolbag over my shoulder.
I guess that's the cost of doing business!
" you can write off some of the costs of importing on your income taxes? Like shipping, duties, brokerage, etc. Is that true?"
In general terms the answer is yes but it is not that simple.
The shipping cost for goods coming in should be incorporated in your cost of goods
For example, if you buy 100 widgets for $500.00 and the shipping cost was $100.00, your total cost would be $600.00 or $6.00 each.
You then calculate your gross profit by substracting your cost of goods from the selling price. For example, selling at $20.00 minus cost of goods ($6.00) leaves a gross profit of $14.00 per widget.
The same principle applies for duty although very few items are subject to import duty..
As far as consumption tax is concerned (GST/HST) if your business is registered with GST/HST, then it is not a factor since you get refunded 100% of all GST/HST paid on your purchases and business related expenses. If you are not yet registered, then the tax paid at time of purchase or import must be added to your cost the same way as incoming shipping charge.
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