Any NZ based drop shippers here?

Hello All

I've just created a salehoo account and I am looking to drop ship from US suppliers to US customers only.
I'm based in New Zealand and have a couple of questions regarding operating from New Zealand.

Does anybody out there already do this?

Thanks
Rich

Hi Rich and welcome to the forum,

We do have a few NZ members on-board, what are your questions?

In regards to your Nexus question, we have support staff researching that for you at the moment and we'll pass on what ever they can find as soon as they find it for you.

Hi Mark

Thanks for the response and looking into that.

To be honest, my main questions are related to tax and Nexus.
I thought there must be some NZ based people in a similar situation to myself who have been through this already.

My main questions are:

Is my home state the state of the mailing address I used for my EIN?

Assuming yes, then that would make it New York State. When I look at the ST-120 form for resale exemption it asks if I am required to pay tax in New York State, or other. Here I've read conflicting information. One source says I should use my NZ GST number as I am based here. But another says, as I have an EIN and mailing address in New York, I should use that. Which would appear to mean applying to be a New York State Vendor. I did find this guide on Link hidden: Login to view, but still none the wiser.
Are there an NZ based drop-shippers who can shed light on this? Do I need to apply as tax vendor in the US?

Finally, I will be selling to customers all over the US, from different drop shippers, each of which may have their own nexus. This would imply that the tax calculation will be different in every case and could only be determined at sale time. This would seem to be a lot of work and something that would surely put off most small time dropshippers.
Given how many people make a living, or part time income from dropshipping, I get the feeling I must be missing something; over complicating things.
Is this so???

It's strange, but it's something that I've never seen come up before. Given that, my instinct tells me that it most probably doesn't relate to your situation, but I'm unsure die to you trading with the EIN. That may well be a game changer, so we really do need to try and research that a bit more for you.

Can I ask what the purpose is of trading with an EIN if you're only drop-shipping?

Hi Mark

I found salehoo as it was recommended by Sarah at Wholesale Ted - she uses it herself and may well be based in New Zealand.
It was her video that recommended getting an EIN - Link hidden: Login to view.

Rich

OK, just to clarify regarding drop-shippers requiring a tax id. Many of them will ask for this, but that is only applicable for US residents. In most cases, once you inform them that you are an international customer, then that is no longer applicable. In the rare cases that the supplier still requests that tax id, you can usually provide a local tax id.

In fact I can't remember ever hearing of a drop-ship supplier rejecting an account application based on an international customer providing a their local id and as I mentioned, most will not be remotely interested in that id once they know your are not located in the US.

So I think you're just making it a little difficult for yourself going down this current route, it's a lot less complicated :)

Cheers

Hmmm, It did feel more complicated than it should be.

But in that case I need to watch that video again, perhaps I missed something - since it is explicitly aimed at people outside the US selling inside the US. My main concern is forging ahead and then getting chased for unpaid taxes.

By local tax id, I assume you mean GST for NZ based people like myself.

Thanks again for looking into this.

PS .I see you are from the future - look at your join date ;0)

Your tab obligations are always to your own tax authority, in this case NZ. If you start trying to trade as a US citizen, then you are creating a tax burden for yourself in the US and honestly, I just can't see any benefit to that whatsoever.

That's a nightmare I would be avoiding at all costs lol

This really is very straight forward for you. Doubtful if they will require a tax id from you, but if they do, then yes, your GST id will be just fine.

Gee, now I feel old looking at the join day. Coming up on 10 years I've been haunting these old hallways as a member lol

Ah OK, so to clarify, I have two options.

1) Trade as an NZ citizen and then simply pay income tax in NZ; I won't need to pay US Sales tax.
2) Trade as US citizen (via the EIN), pay income tax in NZ and US sales tax.

That does appear to be a no brainer.

Doh! Think I need a break from the screen, I read that as 2017 not 2007.

Yep, option 1 is the hassle free way to run. No reason to complicate your tax obligations if you don't need to :)

lol, don't worry, screen strain is a occupational hazard in this business, you'll get used to it :)

I am French, resident in New Zealand I am following Sarah at Wholesale Ted nad she recommand Salehoo.

I am not successfull contacting the people at Salehoo, and don't receive any answer.

I have a registered LLC in Sheridan USA, I am registered with an EIN Number in the US, but I cannot set up Stripe or Paypal while I need a Bank account in the US.

I did find an alternative to open a Bank Account in NZ in US Currency but this won't be recognize by Paypal and Stripe.

I finaly decided to set some payment with Bitcoins and crypto money.

I would prefer to dropship from the US to the US while I think they are some restriction in the US is it?

For example in New Zealand everything that is with wood, plants, animals, food etc is prohibited, so to not have to deal with this type of problems, I think it is better to get items from dropshipper in the US to sell in the US, and in New Zealand to sell in New Zealand...

I would like to be able to find few dropshipper US who are ready to work with me and my pets supply shop online.

But how to make people answering me here on salehoo?

And the Tax now that i Have a EIN Number will pay my Sale taxes to the US and my Income in NZ.. all good..

Maybe a Hint how to open a Bank Account legally in the US for my LLC Company? So that I can use Stripe and Paypal?

Thanks

Kind regards

SE

Hi SE,

The US Bank Account issue for non-residents is a serious pain, but there is a workaround that you might be interested in Link hidden: Login to view

Now, in regards to getting suppliers to respond to inquiries. It's a serious blight on the Drop-Shipping industry in my opinion that many, if not most, DS suppliers simply ignore email inquiries or at the very least, they are treated as nothing more than an annoyance.

The most effective way to get a response to an inquiry from a Drop-Ship supplier is to phone them. That appears to be the one form of contact that most suppliers still respond to. Of course, if you are an international caller, you don't need to pay a fortune, you can use a service like Skype to make extremely inexpensive phone calls.

The one question you do need to ask yourself when a supplier refuses to respond in a timely and effective manner is if they are a supplier that you would feel comfortable dealing with, given the fact when you have a customer problem you need to get resolved, how are you going to do that with a supplier that simply doesn't give a damn.

Again, the phone method will usually counter this problem as well, but unless you are prepared to be making calls, it's a matter of just keeping your fingers crossed in this industry, unfortunately.

Thanks for your Informations and the Taxman. I have already an LLC and an EIN Number, I wrote to them per chat. they will send me more information per email will see. the cost is $750 just to prepare all the paperwork that i already have. They will be able to open the bank account I do not need to come in the US, so for me will be $750 to pay when I will be ready for it.
Otherwise Which alternative in paymenet providers? I thought bitcoins, but not much people are interested in paying with bitcoins.

Hi Sylvie,

Unfortunately, this US account area is something I am not an expert in so hopefully these guys are able to provide you with much better advice that I could,

I don't quite understand the problem you are having using PayPal, can you elaborate on what the issue is there preventing you from simply using PayPal and why you feel you need a US bank account?