Dropshipping Problems :(

Full Member
admin_20
Posts: 5
Joined: 19 Feb 11
Karma: 
20 Jun 12 05:49:26 am
Hello Everyone Here!

So, I started my online dropship store. Worked for fewer weeks on it and managed to find several dropshippers. I already got orders worth $3500 within first month with decent profit margins now. It is all good start for me.

Now i ran into a problem. Suppliers keep asking me for a "Resale Certifiate" while since i live out of USA, I guess there is no way to provide them such certificate i guess. One supplier told me, they cant process my orders without it.

Is there anyone here who manage to sell products without Resale Certificate? I think, i can register an LLC company in USA and get an EIN. Should that work (or convince) most of suppliers?

I have no issues paying sales taxes if applicable but i don't understand if it will work for me since i live outside USA and sales tax is state level tax and so not applicable to me.

I am from Asia and Soon moving to Canada (Permanently), Is there any way to register reseller certificate from Canada and supply it to US drop shipper?

Thanks

-- Manish

Directory Approved Supplier
entrada_collection
Posts: 2
Joined: 30 May 12
Karma: 
20 Jun 12 09:29:00 pm
Hello,

We have a home decor website. You might be interested in checking it out. Those are no the prices you will reveive. We have discounts for whosale or drop shippers.

Sincerely,

Viviana Cervantes
Drop Shipping Director
Essentail Decor INC
viviana@essentialdecorinc.com
323-583-9883

Directory Approved Supplier
entrada_collection
Posts: 2
Joined: 30 May 12
Karma: 
20 Jun 12 09:29:01 pm
Hello,

We have a home decor website. You might be interested in checking it out. Those are no the prices you will reveive. We have discounts for whosale or drop shippers.

Sincerely,

Viviana Cervantes
Drop Shipping Director
Essentail Decor INC
viviana@essentialdecorinc.com
323-583-9883

Site Admin
irene_salehoo
Posts: 2578
Joined: 21 Mar 10
Karma: 
21 Jun 12 04:40:51 am
Hi Manish,

The resale license applies to USA based resellers only. You just need to inform the suppliers where you are presently located, and ask help from them to determine what documents will be required from you.


Irene
Full Member
admin_20
Posts: 5
Joined: 19 Feb 11
Karma: 
21 Jun 12 04:45:10 am
Hi,

Thanks for reply. :)

Just talked to them and they said, they can accept tax ID (Which is EIN if i am not wrong) and i can easily get it with many online service correct?

Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
Karma: 
21 Jun 12 05:58:02 pm
Don't use an online service -- they may or may not even get you the right thing. As a non-resident you need an ITIN, not an EIN. You can get one directly from the IRS Link hidden: Login to view.

Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Full Member
admin_20
Posts: 5
Joined: 19 Feb 11
Karma: 
22 Jun 12 06:15:02 am
Don't use an online service -- they may or may not even get you the right thing. As a non-resident you need an ITIN, not an EIN. You can get one directly from the IRS Link hidden: Login to view.

Frank


Thanks Frank. I didn't know about ITIN.

I have two options (1) Register a company in US and get EIN (2) Get ITIN, What is advisable?

-- Manish

Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
Karma: 
22 Jun 12 04:08:02 pm
If you are selling primarily into the American market, it might work to your advantage to get a US-domiciled company set up with an EIN and bank account and all that, but since an ITIN is free and requires no third party involvement or consulting, it might be the cheapie way to get in and test the market before you commit serious resources to infrastructure. Unlike product, you can't sell infrastructure -- it's a "dead investment." Something you probably will need to spend, but will never directly get your money back (even if it leads you to make money, it's just a tool as much as your computer or a roll of packing tape is.)


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna

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