What are the steps to starting a clothing business online


alichic
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9 Nov 10 05:37:18 am
I would like to start a business online selling clothing from Asia, what are the steps to successful do this? I know I have to first write a business plan, create an ebay account, list my items, etc.

Do I need to get a reseller license and tax ID number, etc?

Since I will be ordering products from oversea, will I have to deal with custom?



richelle_salehoo1
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9 Nov 10 10:48:06 pm
Hi ALiChic,

For one you will need to find a reliable supplier who will be your partner in delivering quality products to your customers - just a tip though, do not sell branded clothing sourced from Asia (especially China). Why? You'll just end up in trouble, 9 out of 10 times branded products sourced from China are simply copies of the original ones or plain counterfeits.

It's great that you have a to-do list set for yourself but try not to be rigid in following them, always leave room for the unexpected :)

Do I need to get a reseller license and tax ID number, etc?
You can try Googling it - most states have an online form on their website these days. Alternatively, just visit your local County Clerk's office. It's usually free to apply, but some states may charge a small processing fee. For additional tips and information please refer to the articles below:

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Since I will be ordering products from oversea, will I have to deal with custom?
Yes, all goods imported into the United States are subject to duty or duty-free entry depending on their classification in the Harmonized Tariff Schedule of the United States. To help you with your importing questions I would suggest you refer to the guides below:

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Oftentimes, it is ideal to seek the help of a customs broker the first time you try importing products.

Hope this helps :) All the best!


Richelle

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SaleHoo Group Limited

irene_salehoo
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9 Nov 10 11:22:59 pm
Hi AlLiChic,

In 2003, the US Customs Service had been dissolved and was superceded by The Bureau of Customs and Border Protection. The best place to get
information about importing/custom concerns would be directly from them Link hidden: Login to view
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Textile or garment imports/exports are governed by quotas and most of all the manufacturers usually contract their very limited quotas to big importers, hence it can become difficult for you to get a permit to import garments from Asia. Make sure that the company you are dealing with has the quota to spare and can be able to ship without problems. Otherwise, you might get issues with the US Customs and the shipment might be impounded.

However, if you are only planning to sell limited volume and have some trustworthy contacts in the Asia, you can actually have one or two small boxes of clothing shipped every now and then via DHL or the Post Office. As long as it is not of commercial quantities, these can be accepted by the US Customs without problems. But, of course, the shipping costs will make your items more expensive.

Hope this helps.


Irene

alichic
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10 Nov 10 04:08:21 am
Thank you guys. The articles were helpful.
However, I still have a few additional questions.

Resale license, EIN:
I read somewhere that you only need a reseller license and EIN if you own a business with an actual location, is this correct? So if I want to start my business first on ebay does this mean I wouldn't need to apply for a reseller license or EIN until I want to expand my business (create a website, rent out an office, etc)? Another reason I may need it is if the wholesaler ask for a EIN or resale license.

custom:
Irene, you said that if I plan to sell limited volume, I can have two small boxed shipped every now and then via DHL or the Post Office, when you say limited volume how small are you referring to and what is every now and then? Two months, six months, 1 year, etc?

What if I order clothing from a wholesaler in Asia worth $300-500, are they allowed to mark my packages as gifts? I contacted a few potential wholesalers and they informed me that they usually mark their shipments as gifts as it is easier to pass. Is this legal?


irene_salehoo
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10 Nov 10 05:04:15 pm
Hi ALiChic,

I was figuratively speaking in reference to the small box shipping. Technically, most personal shipments worth up to US$200, and gift packages worth up to US$100, can pass duty-free as long as the recipient does not receive several, multiple packages in one single day with cumulative value exceeding these amounts.

Having textiles/clothing sent is subject to more regulations than other kinds of consumer goods, and I copy paste
For example, there may be quota restrictions for importing textiles whose value is more than $250. Formal Customs entries must be filed for all made-to-order suits from Hong Kong, no matter what the value, unless they accompany the traveler. Before sending textiles, whether whole cloth or apparel, to the United States from abroad, you should contact your local Customs port Link hidden: Login to view or the Customs attaché in an American embassy abroad about whether your textile package will be subject to import restrictions. (This is particularly true if the textiles are intended for sale as opposed to for your personal use or as a gift.)


This information is from this link Link hidden: Login to view

Hope this helps. :)


Irene

richelle_salehoo1
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10 Nov 10 09:45:47 pm
Resale license, EIN:
I read somewhere that you only need a reseller license and EIN if you own a business with an actual location, is this correct? So if I want to start my business first on ebay does this mean I wouldn't need to apply for a reseller license or EIN until I want to expand my business (create a website, rent out an office, etc)? Another reason I may need it is if the wholesaler ask for a EIN or resale license.


Hi ALiChic,

Regardless whether you simply sell online or have an actual store, it is ideal to get a sales tax ID. Here are a couple of reasons to consider -

# If you plan on buying from wholesalers and/or importing merchandise, you will need to have a tax ID number before they will deal with you. Having a sales tax ID broadens your supplier choices.

# In the US, UK, Canada, Australia, and New Zealand, tax laws require all eBay sellers to pay taxes when they are selling with the intention of making money.

For more reasons plus comprehensive explanation please refer to the articles below:

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Hope I was able to address your concern aptly :) Cheers!


Richelle

Customer Support Manager
SaleHoo Group Limited

alichic
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11 Nov 10 04:24:20 am
Thank you for all the advices. =)


richelle_salehoo1
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11 Nov 10 09:51:45 pm
No problem ALiChic - I'm glad we were able to help you out with your concerns :)

Hope this helps you off to a good start! All the best.


Richelle

Customer Support Manager
SaleHoo Group Limited

irene_salehoo
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12 Nov 10 12:32:01 am
Hi ALi,

Hope you've read my latest PM and that you've finally found your ideal supplier. I also would like to share with you this article with tips on spotting authentic Asian fashion from online stores, and that they can be used as well in screening wholesale suppliers :) - Link hidden: Login to view

All the best!


Irene

alichic
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30 Nov 10 04:42:09 am
Hi again,

I know you guys gave me a list of websites to read about reseller license, sales tax ID, etc...


but I still haven't applied for any of the permits or licenses yet. As I am waiting for the products I've ordered to arrive so that I can list it on my online website and begin my business.


Do you think it will be okay if I begin listing my items and selling online (on my website) without applying for the license?
and then if I do well then I apply for the licenses and permits. Maybe like two + months from now.

I don't want to register my business or apply for any of the licenses yet as I don't know how my "small business" will do. I am kind of just testing the water to see how things go.

what if i just sell a small portion on ebay first? In one of the article it states "tax laws require all eBay sellers to pay taxes when they are selling with the intention of making money" so you would need a reseller liense/sales tax ID..

what do you suggest?


 

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