A few questions on setting up an online store---thanks in advance

Irishsunshine

Hi Guys,

I have a part time job at the moment. I have the source to get a few goods (like funky home, office and kitchen supplies)from China and also I have a few friends who can build up and support the online store website with a cheaper price. so I'm thinking of starting an online store by myself.

I'm totally new to this business and I have read all the related threads related to this. But I have a few questions. I really really appreciate for your help.

1. Do I have to register a limited company? or sole trader?
Or I just need to register a business name? or register a VAT is enough?

Can anyone tell me which is essential? I want to get it start by an easy and cheap way.

2. Do I have to import these good? Because as a start, we only need a few amount of things, Can I just post them to Ireland by post or DHL? is this illegal?

3. Is there any standards on the goods imported from China? Do they need to pass some kind of quality standards, like 'CE' for example?


4. Is it legal to start my own business while having a part time job?

These are the questions that I can think right now, I really appreciate for any responses.

TylerIE

Irishsunshine wrote: »

Hi Guys,

I have a part time job at the moment. I have the source to get a few goods (like funky home, office and kitchen supplies)from China and also I have a few friends who can build up and support the online store website with a cheaper price. so I'm thinking of starting an online store by myself.

I'm totally new to this business and I have read all the related threads related to this. But I have a few questions. I really really appreciate for your help.

1. Do I have to register a limited company? or sole trader?
Or I just need to register a business name? or register a VAT is enough?

Can anyone tell me which is essential? I want to get it start by an easy and cheap way.

2. Do I have to import these good? Because as a start, we only need a few amount of things, Can I just post them to Ireland by post or DHL? is this illegal?

3. Is there any standards on the goods imported from China? Do they need to pass some kind of quality standards, like 'CE' for example?


4. Is it legal to start my own business while having a part time job?

These are the questions that I can think right now, I really appreciate for any responses.

1 -

You dont have to register a ltd company. You can register a ltd company or go the sole trader route, whichever suits you. Ltd company means your losses are limited to any investment you make in the ltd company or any personal loans or personally guaranteed loans or charges you make on behalf of the company.

You can register a business name if you wish, If you are trading as anything other than your own name, even if its Irishsunshine toys or whatever you then must register a business name. If your looking for a .ie domain in anything other than your name you will need a business name.

Vat registration is only required if your sales of goods exceed circa 70 something thousand a year.

2 -

If your selling anything you are supposed to pay import duties and VAT on the imports.This does apply even to small quantities Im afraid.

3 -

CE is required for the following;

The EC directives for CE marking[5] affect the following product groups:

Active implantable medical devices
Appliances burning gaseous fuels
Cableway installations designed to carry persons
Eco-design of energy related products
Electromagnetic compatibility
Equipment and protective systems intended for use potentially explosive atmospheres
Explosives for civil uses
Hot-water boilers
In vitro diagnostic medical devices
Lifts
Low voltage
Machinery
Measuring Instruments
Medical devices
Noise emission in the environment
Non-automatic weighing instruments
Personal protective equipment
Pressure equipment
Pyrotechnics
Radio and telecommunications terminal equipment
Recreational craft
Safety of toys
Simple pressure vessels

Wikipedia can be your friend - http://en.wikipedia.org/wiki/CE_mark

Your goods must be fit for purpose, as described, conform to sample, and of merchantable quality. Goods from China can vary in quality as your probably aware. For this reason it may be worth going the ltd company route - if you sell 10k worth of product then for some reason there has to be a recall - you dont want to be left with essentially an unlimited amount of personal liability to cover the fallout.

4 -

Its entirely legal to open your own business. You must of course register for tax on any income from the side business - unless its less than around 7,000 a year in which case certain alternative arrangements can be made.

Certain employers may have it in your employment contract that you cant work in other jobs or engage in self employment while working for them. If your working in certain retail outlets or any Emergency services - particularly Dublin Fire Brigade, a recent HSE ambulance service employee, or a member of An Garda Siochana you need to check with your employer too.

Irishsunshine

TylerIE wrote: »

1 -

You dont have to register a ltd company. You can register a ltd company or go the sole trader route, whichever suits you. Ltd company means your losses are limited to any investment you make in the ltd company or any personal loans or personally guaranteed loans or charges you make on behalf of the company.

You can register a business name if you wish, If you are trading as anything other than your own name, even if its Irishsunshine toys or whatever you then must register a business name. If your looking for a .ie domain in anything other than your name you will need a business name.

Vat registration is only required if your sales of goods exceed circa 70 something thousand a year.

2 -

If your selling anything you are supposed to pay import duties and VAT on the imports.This does apply even to small quantities Im afraid.

3 -

CE is required for the following;


Wikipedia can be your friend - http://en.wikipedia.org/wiki/CE_mark

Your goods must be fit for purpose, as described, conform to sample, and of merchantable quality. Goods from China can vary in quality as your probably aware. For this reason it may be worth going the ltd company route - if you sell 10k worth of product then for some reason there has to be a recall - you dont want to be left with essentially an unlimited amount of personal liability to cover the fallout.

4 -

Its entirely legal to open your own business. You must of course register for tax on any income from the side business - unless its less than around 7,000 a year in which case certain alternative arrangements can be made.

Certain employers may have it in your employment contract that you cant work in other jobs or engage in self employment while working for them. If your working in certain retail outlets or any Emergency services - particularly Dublin Fire Brigade, a recent HSE ambulance service employee, or a member of An Garda Siochana you need to check with your employer too.

Hi TylerIE, thank you so much for your reply. For the 1st question, I'm still a little confused. If I want to open an online store, can I only register a business name? Or do I have to register at least the ltd company or sole trader? thanks

TylerIE

Irishsunshine wrote: »

Hi TylerIE, thank you so much for your reply. For the 1st question, I'm still a little confused. If I want to open an online store, can I only register a business name? Or do I have to register at least the ltd company or sole trader? thanks

If you dont go the ltd company route you must still register with revenue as self employed, ie a sole trader. This doesnt mean you have to leave your current job, it just provides a system for you to do your taxes for the business.

Seperate and in addition to this if you want to open an online store or traditional store called anything other than YOUR REAL NAME then you must register the business name.

fasttalkerchat

Be aware that delivery costs are huge unless you can order a full container.
Consider using a go between in China. There are many English speaking people in China who have a business verifying sellers, checking quality and organising freight for export.

Irishsunshine

Hi Thank you for your suggestions.

I noticed that in some global sources website like alibaba.com, some company provides the service to ship them directly to Ireland by DHL, Fedex, EMS,UPS, or post and so on.

I assume this will cost more and also I still need deal with the custom stuffs with the express companies, is that correct?

Irishsunshine

Irishsunshine wrote: »

Hi Thank you for your suggestions.

I noticed that in some global sources website like alibaba.com, some company provides the service to ship them directly to Ireland by DHL, Fedex, EMS,UPS, or post and so on.

I assume this will cost more and also I still need deal with the custom stuffs with the express companies, is that correct?

And for this situation, if get the goods by express, it's easier and quicker as a start of business, just to see how the market goes?

Irishsunshine

Irishsunshine wrote: »

Hi Thank you for your suggestions.

I noticed that in some global sources website like alibaba.com, some company provides the service to ship them directly to Ireland by DHL, Fedex, EMS,UPS, or post and so on.

I assume this will cost more and also I still need deal with the custom stuffs with the express companies, is that correct?

any suggestions?

betonit

why not start an ebay shop?

you re going to need a large budget to promote your site also its hard to get people to make a transaction on an unknown site

TylerIE

Irishsunshine wrote: »

any suggestions?

Bringing in by DHL etc can bring with it unexpected costs.

You may be subject to VAT and customs duty on the item and DHL or Fed Ex etc will add a fee to the vat and duty for their services in charging you for same. You may also find that the seller will charge you disproportionately high for the shipping, and may also over-declare the items value on the package.

I ordered a 30 novelty items last year as a gift for someone - The items were hard to find here and cost about €9 each from Amazon UK marketplace. I got them for about $2 each from China, seller marked the value on the package at $8 each , charged about $150 for courier. So my costs went from
$60 for the items + $150 postage - add hidden costs of €40 VAT (21% of $8 x 30) + Couriers Customs Clearance Fee €10, so total cost was around €215. If I had been bringing those items in for resale it wouldnt have been worth the hassle. So yes courier is easier and quicker, but its a massive dent in your profits.

Re getting items sent by post - you will probably find the items would be quicker coming by ferry than by non-express China post!

Chet Zar

I can imagine that the transport costs must be huge alright, eating up all your potential profit. So many people pop along every so often on the forum asking about bringing in goods for sale from China and so on, but it seems like the costs outweigh any revenue potential.

One option could be scurri.com, may save on your costs?

Irishsunshine

TylerIE wrote: »

Bringing in by DHL etc can bring with it unexpected costs.

You may be subject to VAT and customs duty on the item and DHL or Fed Ex etc will add a fee to the vat and duty for their services in charging you for same. You may also find that the seller will charge you disproportionately high for the shipping, and may also over-declare the items value on the package.

I ordered a 30 novelty items last year as a gift for someone - The items were hard to find here and cost about €9 each from Amazon UK marketplace. I got them for about $2 each from China, seller marked the value on the package at $8 each , charged about $150 for courier. So my costs went from
$60 for the items + $150 postage - add hidden costs of €40 VAT (21% of $8 x 30) + Couriers Customs Clearance Fee €10, so total cost was around €215. If I had been bringing those items in for resale it wouldnt have been worth the hassle. So yes courier is easier and quicker, but its a massive dent in your profits.

Re getting items sent by post - you will probably find the items would be quicker coming by ferry than by non-express China post!

Hi TylerIE, thank you for ur reply. I do think about shipping the goods by sea. But my concern is : 1. I have multiple types of goods in China, I need to gather them together and put on one container, which may arise potential cost. 2. I need to the clearance on custom and duty, pay VAT, etc when it arrives at Ireland. I'm NOT sure if it is possible that I can do them by myself, or I need to find an agent to do, which also will cause more cost. I have about 40 types of goods.

sandin

Irishsunshine wrote: »

I have the source to get a few goods (like funky home, office and kitchen supplies)from China and also I have a few friends who can build up and support the online store website with a cheaper price. so I'm thinking of starting an online store by myself.

I'm totally new to this business and I have read all the related threads related to this. .

1 - setting up an online store is the easy part, but think of it like setting up a store in a town. - The day you open, you re effectively in the worts trading spot in the town, only with consistent SEO are you able to move into primary retail space and this can take up to 2 years.

2 - the type of product you are thinking of selling is targeted to the 30something marekt. those who ahve huge mortgages and probable negative equity - its the worst group to currently target.

3 - The type of product you are selling is usually sold on its packaging and branding, if its in boring brown boxes, it wonlt sell for a premium price.

4 - if you are sourcing outside the eu and it is not a known brand, then it is very advisable to get product liability insurance (depends on the product) as if a fault cause damage to soemone, the bill will be high!!!

5 - get all the costs together and see if its worth it - imo, it will take 2-3 years to get any sales traction and by then your products may be seen as out of date.

6 - if it can wait, visit the Autumn Gift fair in the NEC Birmingham in early september. 15 halls full of gifts and gadgets of every sort available in small quantitis and shipped from UK / europe and much much less risk. (no liability insurance needed, no duty, probably well packaged etc etc)