Inporting and Selling Online Queries

Drummroll

Hi everybody,


I've recently come up with the plan and resources to inport electrical goods from China and sell online using eBay, Gumtree, etc....

I don't plan on going through the hassle of becoming a sole trader and registering etc until I do a few small sales and see if it will kick off.

I have a few questions if anybody can help me, firstly I know all the risks associated with faulty goods and getting ripped off from China so that's not the issue. I have a trusted supplier and I have struck my first deal with him.

So firstly I'm very inexperienced although I have done a great deal of research but just need clarification.

1. If I do not register for VAT and I have not registered as a business is there a chance that my package may be seized ? as I will be Inporting roughly 200 units (small units would fit in 1 or 2 large boxes)

Should I register for VAT?

2. Secondly if they did request me to pay customs or VAT how would I do this ? Would the inform me that my package was seized until payment was made or would it be up to myself to figure out my package didn't arrive and use a tracking number to figure it out myself ?

3. I think I read that if your turnover is under €75k that there's no need to worry about customs or VAT is that true ?

4. Am I doing anything illegal doing all this ?

5. Is there anything vital that I may not know that could damage me finacially or legally?

Thank you all for your help I know I had more questions but my mind just went blank I'll edit if I remember 😂

jimmii

1) If you are thinking about doing enough to make it worth while registering for VAT then you should be definitely registering as a business. Becoming a sole trader is a pretty painless process. Not sure that is the best idea in this case give what you are importing.

VAT is pretty easy to take care of so if its the thought of additional paper work that is putting you off I wouldn't worry about that. As long as you keep good records day to day then VAT returns shouldn't take more than an hour every other month.

2) You will get a letter from Revenue saying the package has arrived in the country and they will likely ask for a receipt of payment and then get in touch with how much the VAT & Duty comes to.

3) For goods that is the threshold. But its still worth thinking about!

4) With regular goods there is no problem with this and lots of people are doing it but there is no chance I would do this with electrical goods. There is definitely some testing that you will need to get done on the products I remember a documentary on Pound shops in England and poundland got a massive fine for a clock they were importing they had approval then changed manufacturer doing the exact same thing but didn't get it approved again and got a big fine for it so you have to be super super careful. Hopefully someone with a bit of experience importing electricals for resale will pop in here to help with what you need to do.

5) I would definitely look at forming an LTD to do this it just seems unnecessary risk running this as a sole trader as it could easily go wrong and you go on the hook for everything. If you are a home owner going Sole Trader seems suicidal!

antoinolachtnai

You need product liability insurance.

I think it will be very difficult with your proposed setup. You can go without it, but if something goes wrong you are potentially in very big trouble. You could lose your business and maybe even your home if you own it. You will probably need a bit of scale to make this work.

_Brian

I looked at this type of venture a few years ago.

How will you compete with the same supplier who is no doubt selling through eBay and AliExpress?

You will have the shipping and import charges, then reshipping charges within or from Ireland which are madness.

jimmii

_Brian wrote: »

I looked at this type of venture a few years ago.

How will you compete with the same supplier who is no doubt selling through eBay and AliExpress?

You will have the shipping and import charges, then reshipping charges within or from Ireland which are madness.

This big time. It makes it hard to compete when the postage is being subsidised so they can offer free postage on $5 items coming half way round the world. I would love to know how much An Post receive to stick registered post on AE items when they reach here.

_Brian

You could go the drop shipping route but I don't like that business model either.
Few items I've bought of Irl or UK sellers turned out were drop shipped. They advertised them as local stock with 7 day delivery. After 14 days with no tracking number it's obvious this isn't light. On two occasions I've opened cases with eBay against sellers for not delivering as advertised.
I ordered one item and the case closed and I got a full refund. The item landed after 6-8weeks. I reckon the Chinese supplier was slow to ship and let the drop shipper down. I was refunded my money and had the item too. Only €10. But the guy was stung by bad suppliers. He lied all the way through to eBay insisting he was shipping from the UK, it landed with Chinese shipping labels. Damn idiot.