Selling imported goods online

[Kengura]

Hi all. I must admit that I didn't read through much here yet. I decided to post, as I feel my questions are a bit specific. I feel silly about the actions I took, before I researched properly.
So, suddenly I had that idea, that I could start an online shop, to start earning. (well, I just got motivated as my last job was a Christmas temp in one of such companies). So I went on alibaba, found a product, ordered 150pcs and then started researching, finding out, that running an online shop is quite costly (mainly regarding merchant account, and all that to do with customers paying online). Well my product cost Inc shipping is about 1,50/pc and I am hoping to sell it for about 7xmore per pc
O1
When is the time to become self employed seller, I mean to register with hmrc?What in case I won't sell much, in case I don't set up a proper online shop but sell it on local social networks. (I will kepp the records and want to be registered properly, just wondering if there is any threshold for profits from re/sale)
Q2
I did read about EORI. How that works in practice? Should I get it? Because my supplier didn't mention it - not that it's up to him. Does it apply to DTD deliveries?
I feel ashamed to ask such a questions and admit what I have done‍I know I have tons to read, but I feel a real need to "talk" to someone who's got a real time experience. I don't want to set up Amazon account. I'd like to focus on local area too, where I could possibly deliver. But also was thinking offering gift service - I go to the post office and send it to the person the customer want to gift - with a personalized note. The product is a gift item about 8x5cm (fragile)
Thanks if you came this far.

 

[Scalloway]

You can get up to £1,000 each tax year in tax-free allowances for selling. The £1,000 is your sales, not profit.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

If you start before 5 April 2021 you have until October 5th 2021 to register as self employed with HMRC.

 

[Mr D]

Yes its a good idea to get an EORI. And give it to suppliers when ordering.
You will one way or another pay import duties (if applicable) and VAT. Sometimes stuff can arrive and bill follows after.

You can set up your own site or use a 3rd party site (ebay, amazon etc). There are dozens of sites some of which may be suitable for your product. But all charge you.
Your own site can be set up relatively quickly, problem you have is getting noticed. Can spend plenty on marketing your business.

Gift service is nice, a number of sellers do it.

7x markup is nice - some do more, some do less. You may find some competitors doing a much smaller markup. Even appear to be selling at a loss. Ignore them, they are not the people you want setting your pricing.

 

[paulears]

I like your markup. I’m quite happy with a net margin of 10-20% on the higher price kit I sell. My orders are smaller usually batches of ten, Re-order at 5 which works great for me, but means a stock cost that revolves around 9-10 grand.I’ve wiped that value out over the past year, so having that stock level is not a problem for now on. For me, maintaining the popular line levels is easy. I know the time scale for each supplier so never run out, but it’s close. Worst for me are the speculative items. Buy six or seven hundred quids worth of possibly great kit. Luckily I’ve made only a few mistakes so far, and bad buying decisions thankfully rare.

 

[Kengura]

Thank you for your replies. I looked through the other posts and have a better idea. However, still have a questions.
Is it legal to (long term) only accept transfer from bank to bank (and a cash of course) and not using merchant account, business accounts, pay pal etc? That restricts selling to very few social network platforms, maybe free web store, which I am fine with. I basically have no budget for anything else regarding online store and my selection is very very small for now - 1 product with 3 different texts to choose from. But I think is a good one and forecast a big interest

 

[paulears]

I'm not sure I understand?
Perfectly legal to accept bank transfers, but do you not want customers? Your goods sound kind of cheap and cheerful and probably impulse buys. You're not dealing with one term repeat customers are you?

Paypal, and perhaps via them, credit and debit cards are the nu,her 1 payment method. From the customer perspective, they click on a button, get a thing pop up saying paid, and it's done. Setting up new BACS payments on my own business bank is time consuming, and with the new checks - unless they give you the right bank account, the setup fails. Fedex gave me a sort code and account number the other day for an unusual shipment their system was struggling with. Santander had real trouble, until three emails later Fedex said, try putting in TNT, which worked. BACS is prone to abuse, so the bans are adding layers of security. A real pain. If you want any kind of on-line success with strangers, you need to make it simple for them, not you. What's wrong with Paypal - it's what use on my website to process payments and it's simple and easy to use?

Cash? I hate the idea. On the few occasions customers would offer it, I'd try not to take it. Getting rid of cash is so difficult now - with money laundering regs - paying it in needs visits to banks, and hassle.

 

[Mr D]

I'll do bank transfer for a couple of grand. For a small amount? Not worth the bother. Hassle of setting up in bank account, getting a code via mobile etc versus paypal one click....?

Paypal or other payment processors are cheap enough - don't lose what custom you can attract by being cheap on the payment processing. Your markup should more than cover the costs.

 

[Kengura]

Yeah I think I will consider PayPal then. I am strongly against cashless society.(for me easy enough to spend cash grocery shopping, post office or my registered childminder who prefers cash). But not here to debate this. I am not sure I understand the hassle you talking about when doing the bank transfer. When I pay via bank transfer buying staff of fb say, it takes 1 minute via my bank app.

 

[Mr D]

Yeah I think I will consider PayPal then. I am strongly against cashless society.(for me easy enough to spend cash grocery shopping, post office or my registered childminder who prefers cash). But not here to debate this. I am not sure I understand the hassle you talking about when doing the bank transfer. When I pay via bank transfer buying staff of fb say, it takes 1 minute via my bank app.

Some of us have more secure banking facilities and takes much longer to set up.

No reason you could not offer multiple methods of payment, customer picks what is easiest for them.

As a business you don't get to consider just what you find convenient, you have to think of what customers want, what is easy for customers.

Payment providers give customers protection. Bank transfer while convenient for you doesn't give the same protections for them.