Is it ok for a shop to source stock online?

Butch Cassidy

There's a shop that sells DVDs and I know they're buying them cheap from a website that well, just sells DVDs. So this shop buys some DVDs cheaper than the retail price from an online shop and sells them full whack in their shop.

Is this all above board and legit?

jhegarty

Why wouldn't it be ?

GerardKeating

Butch Cassidy wrote: »

There's a shop that sells DVDs and I know they're buying them cheap from a website that well, just sells DVDs. So this shop buys some DVDs cheaper than the retail price from an online shop and sells them full whack in their shop.

Is this all above board and legit?

This is the basis of retail, buy from one to sell to another.

jor el

Butch Cassidy wrote: »

DVDs cheaper than the retail price from an online shop and sells them full whack in their shop.

And the problem with this as opposed to any shop buying any stock from anywhere, at cheaper than retail price, and selling it for full whack is? This is how the economy works.

pat58

It sure is it is the way of the world , buy as cheap as you can and sell for as much as you can ,thats life:p

the_syco

Butch Cassidy wrote: »

So this shop buys some DVDs cheaper than the retail price from an online shop and sells them full whack in their shop.

I'm afraid I have no idea what the hell you are on about. Do you expect them to buy the DVD somewhere DEARER than retail prices, and somehow give you a discount?

I am so deeply puzzled by how you think the latter idea is "the way to do things"...

jahalpin

Butch Cassidy wrote: »

There's a shop that sells DVDs and I know they're buying them cheap from a website that well, just sells DVDs. So this shop buys some DVDs cheaper than the retail price from an online shop and sells them full whack in their shop.

Is this all above board and legit?

You do realise that the difference between what the product cost to buy and the selling price is used to pay for things such as;

- Staff wages
- Rates
- Tax
- Electricity, phone, heating
- Rent \ mortgage payments
- Cleaning, security, repairs, maintenance etc.

If, however, the shop is buying the dvd's from outside the EU (eg thehut.com from Channel Islands) and not declaring them to the revenue, then there may be problems. This is unlikely to apply as the revenue may become suspicious if he is buying too much stuff from outside the EU and would launch an investigation.

Butch Cassidy

jahalpin wrote: »

If, however, the shop is buying the dvd's from outside the EU (eg thehut.com from Channel Islands) and not declaring them to the revenue, then there may be problems. This is unlikely to apply as the revenue may become suspicious if he is buying too much stuff from outside the EU and would launch an investigation.

Yeah I probably should've put that into my original post to make it clearer what I was asking about....

Gillo

Why not buy directly from the site the shop is buying from yourself???

Problem solved!!!!!!

Agent_99

jahalpin wrote: »

You do realise that the difference between what the product cost to buy and the selling price is used to pay for things such as;

- Staff wages
- Rates
- Tax
- Electricity, phone, heating
- Rent \ mortgage payments
- Cleaning, security, repairs, maintenance etc.

If, however, the shop is buying the dvd's from outside the EU (eg thehut.com from Channel Islands) and not declaring them to the revenue, then there may be problems. This is unlikely to apply as the revenue may become suspicious if he is buying too much stuff from outside the EU and would launch an investigation.

Why would the revenue get suspicious? A company can buy product from anywhere in the world as long as they pay the VAT and Duty for non EU imports. no VAT on EU imports, And charge VAT on sales and of course give it to the vat man.

noodler

Do you not have to buy from wholesalers if you are a retailer?

I thought there were some complicationa there I must admit.

P. Breathnach

noodler wrote: »

Do you not have to buy from wholesalers if you are a retailer?...

No.