ADP

Hi All

Without giving too much away - I have "identified" an online retailer who sells products very cheap - totally legit well known company. I cant find them cheaper anywhere else. Now as an experiment I have bought something from them and put it on ebay - its sold already making me £25 for doing nothing.

So - can I order lots and lots of things and do this? Is it legal? Will said online retailer get suspicious if I by lots of the same item? or wont they care - is a sale a sale!? If everything is ok I intend to make some tidy pocket money Could I get into tax issues???

Any help appreciated

Andy

davegtt

Cant see why you cant do it. Although depends on what it is your selling as to providing a warrenty etc? or would that be covered by a manufacturer....

Dunno if you'll have to register as a trader of new items and I dont know if what ever you sell is liable to tax?

grey area Id say although Id just keep on doing it lol

Spoon

You are free to buy and sell if you wish but you will have to register as self employed within 3 months of doing this otherwise you might be liable for a £100 fine.

You will then be liable for tax and NI at the rates applicable as a self employed person on whatever turnover you manage.

Spoon

Then of course you have the issue of whether or not the item you bought brand new has a transferable warranty (which I doubt very much as the original seller will have your details as the purchaser and you'll have the receipt).

If you are advertising it as brand new on eBay then be careful. The buyer will assume you are a trader offering the manufacturers warranty.

Technically I guess it's second-hand.

Milamber

iTrader: (2)

If you sell regularly then the Sale of Goods Act will apply to you anyway matey.

Spoon

Distance selling regs is the one to be more aware of dealing online, although of course the sale of goods act is to be adhered to as any seller has to.

Milamber

iTrader: (2)

Of course, its amazing how many people don't even think about it though.

Freak

I do this all the time....buy records online from selected stores, and stick them on ebay for stupid profit.

Not one has ever batted an eyelid at me ordering 20 copies of something either.

I am registered self emplyed though- so unless you fancy getting shafted you may want to look into that.

carl

Don't see a problem. If you contact the retailer you might be able to get them cheaper as a bulk discount. Of course, if some auctions fail to make the price you've paid then you'll have to take the hit. You could even get the retailer to deliver direct (making sure the invoice goes to your own address).

I accidentally bought two items once (got fed up of losing out on auctions, so bid on two simultaneouslty and won both). Sold the second one on eBay for £15 more than I paid before I'd even received it.

MikeCardiff

iTrader: (2)

Just to clarify the legal position :

1. If you buy anything solely with the intention of selling it for a profit, you are classed as a trader - this means you have to pay tax on the profit, and will be liable for increased NI contributions. If you are already employed by someone else, i.e. not self employed, you may well get charged the higher rate income tax on them, but you'd need to check with the IR as it doesnt always apply.

2. You have 3 months from when you start doing it to notify the Inland Revenue, who will send you all the relevant paperwork and guides etc.. on what you need to do and what records to keep.

3. You will have to comply with the Direct Selling Regulations - this means customers, once you have sent the goods, have the right to change their mind for any reason they want and return it for a full refund ( including p&p ).

4. The warranty depends on the exact product and supplier, but if you get an item returned that is faulty, you should be able to return it to the supplier for a refund - you lose any profit you made on it and only get back what you paid them, or more likely a replacement item.

The supplier may well refuse to supply you if they think you are buying them to sell on Ebay - daft as it sounds as they still get them same money for it from you, but some suppliers dont want their goods sold on Ebay as they think it 'cheapens' them. No harm in asking them though, as if you can get them at trade price, you'll make more.

Beware though, as soon as someone sees you selling them and making money, they'll start selling them on Ebay and undercut you, the prices will go down as you compete with each other, and you'll end up making next to nothing on them - sadly the way it always works on Ebay as most sellers dont have the imagination to come up with new lines themselves, they just copy someone already doing well on there.

Also - if it is a fairly specialised product that isnt being sold by other sellers, the first few you sell will go for a lot, and the price will drop pretty quickly afterwards as most people who want one will have bought one, so dont go ordering 500 of them assuming they'll all make you £25 a time.

StickyMicky

its just the same aas dropshipping


i was waiting until people had won an auction and then i was ordering the stuff in and sending its striaght to there homes

my starting price was always above the cost to myself
made a tidy sum back in the days

Freak

Micky the fluffy towel king of the north east