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  1. #1
    Member
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    January 18th, 2005
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    Finger Lakes, NY
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    dropshipping newbie here ...
    I've been an affiliate for a while but I'm testing the waters with dropshipping ... slowly, cautiously.

    Wow, it raises a whole lot of cans-o'-worms you never deal with as a straight affiliate.

    I know this probably isn't the board for it, right? But does someone know where I can go to get up to speed on taxation issues, fulfillment issues, etc. etc. plus ask dumb questions about dropshipping?

    Thanks!

  2. #2
    MasterMike HardwareGeek's Avatar
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    January 18th, 2005
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    3,810
    To become a drop shipper you need a state Tax ID and getting a EIN sometimes can be helpfull. You only tax shipments you send to the state you are located in. You will need to get your states tax sheet to see what city charges what tax so you know what to charge. Most states want you to send in the taxes you collect quarterly unless you collect over 30k then they want it monthly.

    Good drop shippers
    www.dandh.com
    www.ingrammicro.com

    Those are the ones I use but I am more of a tech person so not sure if they will appeal to you.

  3. #3
    Member
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    January 18th, 2005
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    Thanks, HG. I appreciate the advice. I'm only working with one wholesaler right now and they haven't asked for my state tax ID. I'm sure that if I expand anywhere else I'll be asked for it.

    Is this a problem, being the middleman and not having a state tax ID for this one wholesaler? (I said these would be dumb questions. I can't wait until I have a clue.)

    The state tax thing seems pretty darn difficult. Right now I'm processing payments through Paypal. I don't think they have a field that allows me to calculate sales tax for a purchase. In other words with the tax thing through paypal I don't know if I could even let people buy. Or I would have to go back and ask for a second payment to cover tax, I guess? (erk)

  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    April 5th, 2005
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    Park City Utah
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    16,646
    There are a lot of dropshipping scam, do some searching on ABestWeb and you will find a number of posts.

  5. #5
    The Eternal Optimist zimmy's Avatar
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    January 18th, 2005
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    NC
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    Right now I'm processing payments through Paypal. I don't think they have a field that allows me to calculate sales tax for a purchase.
    You can use paypal's shopping cart (go to merchant tools) and that allows you to add a tax option.



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