newbie seller

ok so im goiing to be a new ebay seller. i will be getting an officail business licence. but im confuse about a number of things.

 

1.  first is concerning the HST do i charge this to all my international buyers, considering i live in ontario.

2. when i look at a listing i see an import charge is that fee automatically include the HST, also as a seller how do i factor in duties       fees is their some sort of calculation. where do i find this or how do i do this.

3. ive also been reading up on the global shipping program, and from what ive seen not alot of sellers/buyers like it. as sellers do any of you use this service? what do you think about it? it just seem to me is that it makes thing easier for collecting on import fees, but a pain for shipping.

4. also i plan on buying  a barcode scanner to keep track of inventory. what would be a good software for point of sale/inventory(preferably)

 

i know this is alot of newbie questions but im a complete newbie to all this, and any help would be great.

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newbie seller

" i will be getting an officail business licence"

 

You do not need any license to sell on eBay (or anywhere else online for that matter) - unless or until your annual worldwide revenue exceed Cdn$ 30,000

 

" first is concerning the HST do i charge this to all my international buyers, considering i live in ontario"

 

First thing first - are you registered with GST/HST?  If you are (I frankly do not see a need for that at this time) the government would have given you all the information at time of registration.  You remit GST/HST on taxable transactions made within Canada at the rate (GST or HST) applicable to the province of the buyer.  For example, you are based in Ontario and ship a taxable item to a buyer in NS, you need to remit 15% HST. a buyer in AB you remit 5% GST, a buyer in ON, you remit 13% HST, etc... ("transaction" means the total amount of money received : item plus shipping and handling)

 

No HST is chargeable for items shipped outside Canada.

 

If you are not registered with GST/HST, you cannot charge or remit taxes. It is illegal to do so.

 

"...when i look at a listing i see an import charge .."..."ive also been reading up on the global shipping program, ..."

 

This optional program (GSP) only applies to American and British sellers shipping to Canadian and international buyers.  It does not apply to Canadian sellers shipping from within Canada.

 

"i plan on buying  a barcode scanner to keep track of inventory. "

 

Why?  What kind of business are you planning?  How many items do you plan to carry?  100? 1,000?  10,000?  Singles or large quantities of each?  New or used? What category? Low priced or mid priced or high priced?

 

The best thing you can do is to keep it simple.  Start small, learn the business (mail order through online sales is not an easy business) and grow with time.

 

Good Luck.

 

 

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newbie seller

i will be needing a buissness licence because i will be a retailer in order to get goods from distributors, i will need a licence. and i will have to be buying stock in large amounts. thats why im buying a barcode reader, it would make my life easier if i could just scan somthing and be finished with it. also i saw in another thread you said that smaller sellers applied for the hst and that it would was a benifit.

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newbie seller

also how do i figure import charges for internnational buyers

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newbie seller

"in order to get goods from distributors"

 

Do you have a wholesaler in mind already? What kind of products are you looking at?

 

 

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newbie seller

2. Sellers do not collect duty or taxes from international buyers.The listings that you see are in the global shipping program and on those listings ebay/Pitney Bowes figures out and collect import taxes. Canadian sellers can not use the gsp. When the gsp is not used, a buyer is responsible for paying and duty/taxes that are charged by customs when they pick up their item.

 

As a new seller you might want to start out by selling to Canada and the U.S.

 

fees - If you are referring to ebay fees, here is a link -  http://pages.ebay.ca/help/sell/fees.html

The fees are slightly different if you have an eBay store but it is a good idea to sell for a while before getting a store as you will be limited to the number of items that you will be able to list until you get established.

 

store fees - http://pages.ebay.ca/help/sell/storefees.html

 

Selling limits - http://pages.ebay.ca/help/sell/sellinglimits.html

 

3. You can't use the gsp if you are shipping from Canada

 

4. I can't help you there but before spending a lot of money you should list and sell a few things. There is a fairly large learning curve and not all sellers and/or all items work well on eBay.

 

Have you read this?  http://pages.ebay.ca/sellerinformation/index.html

 

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newbie seller

i already have a bunch of distributors on my list

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newbie seller

"also how do i figure import charges for internnational buyers"

 

As stated above : you do not. 

 

I frankly do not think you should get a GST/HST registration until you have some selling experience.  While there are some advantages in being registered (ITCs), it also comes with responsibilities.

 

Have you checked what your eventual eBay competitors do?  Do they charge GST/HST or are they small sellers who do not charge the tax? Or absorb it in their price?  What do you think eBay buyers prefer?  Buying from sellers charging tax or those who do not?

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newbie seller

ive been doing my research for a while now and i will be mostly be selling electronic/computer parts.

so basically if i sell and item to a international buy i dont have to to charge and import/duty fee.

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newbie seller


@eshwaarx2014 wrote:

i already have a bunch of distributors on my list


Have you contacted them already? Some distributors will only deal with established sellers and some do no sell to eBay sellers.

 

Have you already looked on eBay to see how many other similar products are being sold and if there is a demand for that type of product?  Keep in mind that you will be competing against U.S. sellers who may pay less than you will for supplies and who will be able to charge less for shipping.

 

I am not trying to discourage you but there is a lot  of research to do before starting out and before spending a lot of money on inventory etc.

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newbie seller

my competitors are mid range type of buissnses and they always have an import charge that is seperate from the actual cos of he item an that sort of stratagy seems to be doing well for them

Message 11 of 31
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newbie seller


@eshwaarx2014 wrote:

my competitors are mid range type of buissnses and they always have an import charge that is seperate from the actual cos of he item an that sort of stratagy seems to be doing well for them


If they have an import charge they are using the gsp program and are in the U.S. or the U.K. You have no way of knowing if they are doing well by selling to customers within their own country or to buyers outside the country. Many buyers do not want to pay import charges up front.

 

I don't know anything about the electronic area but I do know that it is very competitive.  

Another point - Make sure that the people you are buying from are not selling here as they will obviously be able to offer their items at a lower price.

 

 

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newbie seller

i have done all that research already

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newbie seller

" i will be mostly be selling electronic/computer parts."

 

Very competitive category!

 

Have you checked your costs (including incoming shipping charges) and compared to the selling price (including shipping) offered by eBay competitors? 

 

How will your selling prices (including shipping) compare to your competitors? 

 

When I mention competitors prices, I do not mean "listing" prices, I mean "sold" prices. Quite often we will see 100 similar products offered on eBay at prices from $30 to $45 (for example) but when checking "sold" items, the average sale is closer to $10 or $20 only.

 

What have you planned as far as your shipping costs and charges are concerned?  How will you compete with American sellers who generally have lower shipping costs (and most sell with "free shipping") or Chinese sellers who pay almost no shipping to send to North America.

 

Does that leave enough profit to cover your cost of goods? eBay and PayPal fees?  allowance for losses? a return on your invested capital?  and your time?

 

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newbie seller

ive done all that research already. why is every one try to tell me why i shouldnt be doing this

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newbie seller

"ive done all that research already"

 

If you do not mind me being candid, your questions suggest the research you have done may lead you to the wrong conclusions.

 

You seem to misunderstand what your American competitors are charging.  To test it, log on to eBay.com and use an American shipping address (zip 90210 for example).  That will tell you what your competition is doing. 

 

Nothing to do with "import charges" etc...  Just look at the American marketplace.

 

If you feel your costs will allow you to make a profit (after all expenses) by all means go for it.

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newbie seller

i already have a bunch of distributors on my list

 

Uh-oh.

You got them off the internet,eh?

And they will be shipping product to you in Canada? And you will be listing and shipping from Canada?

Didn't think so.

Because if you are dropshipping (you take the orders, forward them to your supplier and he ships usually from China or the USA), might I respectfully suggest that you not put much money into this scheme.

And I use the word 'scheme' deliberately.

 

No one likes to be told they are doing it wrong.

But we are all grown-ups here and can take a little helpful critique.

 

With dropshipping your supplier has hundreds, if not thousands, of other sellers competing with you.

You never see the product and cannot evaluate its quality.

If the supplier runs out of stock, your customer will blame you.

If the supplier packages poorly, your customer will blame you for the damage.

If the item is 'not as described' or damaged in transit, your customer will blame you. EBay/Paypal will then refund him and come after you for the money. The supplier is not affected.

 

Most manufacturers will not stand behind products sold on eBay.

Your customer will blame you.

If the manufacturer does stand behind their warranty, the item will usually have to be shipped back  with Confirmation of Delivery.

Your customer will blame you and want you to pay for the postage both ways.

 

You have been buying a few things on eBay, which has given you an overview of the customer experience. That's a good start.

 

Oh, btw, you do know that Paypal will Hold your customers' cleared payments for 21 days as Buyer Protection against your performance, right?

If you and overseas supplier cannot prove delivery, the customer will be refunded in full. The item may be delivered after that, and while ethically the customer should reimburse you, many won't.

 

 

Oh yeah, this is going to go well.-- Zoe Alleyne Washburne.

Message 17 of 31
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newbie seller

The OP wants to buy a barcode scanner to keep track of inventory so I doubt that they are dropshipping.

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newbie seller


@eshwaarx2014 wrote:

ive done all that research already. why is every one try to tell me why i shouldnt be doing this


We are not saying you shouldn't be doing it but I am saying that you should start slowly and know what you are getting into.  Most Canadian sellers sell more to the U.S. than within Canada so as Pierre said, you are competing with what a U.S. seller will charge to ship within the U.S. You seem to be comparing gsp prices which are not comparable to shipping within the U.S.

 

If you have some previous retail experience that knowledge will help with customer service but ebay does have some specific requirements and rules that many new sellers do not take into account.

 

 

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newbie seller

"ebay does have some specific requirements and rules that many new sellers do not take into account."

 

With mail order, there is a higher risk of losses within the postal systems. Some categories may experience higher degree risks of abuse and/or fraud.   Each seller must determine their own risk tolerance.  It affects pricing and shipping.  For example, sellers with a low risk tolerance factor may decide to ship with tracking (to "protect themselves") raising the overall selling price of their products when compared with sellers with more mail order experience and higher risk tolerance shipping by the cheapest method available.

 

When buyers send payment through PayPal a new seller (shipping from Canada) will find that payments are held for 21 days although the seller is still responsible for immediate shipment once payment has been made by the buyer.  For more information:

on eBay.com:  http://pages.ebay.com/help/pay/questions/pending.html

on eBay.ca:  http://pages.ebay.ca/help/pay/questions/pending.html

 

You will notice the rules are slightly different.

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