A Simple Overview of Importing Goods to Sell Online

Are you looking at importing goods from overseas to sell online? Confused about Customs duties and importing taxes? Want to know more about taxes you may be liable for?

Importing from overseas is both exciting and daunting for first-timers. On one hand, you have the opportunity to import unique and low priced goods which aren't otherwise available in New Zealand. On the other hand, however, there are concerns about getting scammed by illegitimate suppliers and worries about the logistics of shipping and storage. The following article provides an overview of information on importing to New Zealand.

Things you need to consider before you import:

Will your products be profitable? In order to make sure, you must calculate the overall costs of selling the item including: shipping costs, storage (if ordering in large bulk), Customs duties, and TradeMe fees (or the cost of setting up your own E-Commerce site to sell on). After calculating these costs and subtracting them from the amount you can sell your item for, you can work out how much profit you can make, and whether or not your product is viable.

Is your supplier trustworthy? Establishing whether your supplier is legitimate is vital. A good indication that a supplier is trustworthy is if they accept secure payment methods such as PayPal, Paymate and credit card payments. If the supplier only accepts unsecured payments such as Western Union, this can imply that they are illegitimate.

Will your supplier send you quality products? Before you go investing, you need to ensure you are getting a product of exceptional quality. The simplest way to look into product quality is to order a sample of the product or products you wish to sell. You will have to pay for these samples, and some suppliers will even charge more than an advertised wholesale price to prevent retailers from simply ordering one item at a time, but it is certainly worth it in the long run.

Bulk order or small order: which is right for you? Bulk orders are generally optimal for those who are serious about online selling. This is because you will get the best possible deal when buying in bulk.

However, for some retailers buying in light bulk is a more affordable and manageable option, as when you only buy in light bulk, you will eliminate the task of having to arrange storage and heavy shipping. Instead, items from light bulk orders can usually be stored in the home or office, and can be shipped by a courier company, some of which can ship up to 50-60 kilograms per package (try FedEx and DHL).

Paying Business Tax: All retailers who sell online (or offline) are required to pay taxes. Generally, retailers are required to pay taxes on sales if:

• You acquired the goods with the purpose of on-selling, or
• The purpose of your selling is to make a profit (as opposed to simply selling second-hand goods from around your house to clear space)

If your online selling generates revenue of over NZ$60,000, you are required to register for GST.

Tax and import duties: You will more than likely be liable to pay tax duties on whatever you import. Most duties range from 12.5-18%, for a full list of import duties, refer to the Customs New Zealand website.

For more information on importing and product sourcing, visit SaleHoo Wholesale Directory