What business form: eBay and importing?

[cambridgeshire]

Hi,
My wife and I would like to start up a small business that buys (non-electronics/food/cosmetics) goods from other EU countries and sells them on eBay.co.uk. Question: if we would like to start this really small first (going abroad by our car, buy a 100 or so already EU-customed items from abroad wholesellers, bring them back to the UK and list them on eBay), without giving up our existing jobs (as who knows this business would be okay or fail...), then what would be the easiest, simplest and cheapest business form (sole trader, ltd, whatever) that allows this kind of importing and selling?
Thank you

 

[cambridgeshire]

Hi

Any info/advice would be appreciated. Or if you started a similar business I would be glad to read about how you did it, considerations/difficulties/etc.

 

[Kernowman]

I would spend far less time about worrying how you are going to operate the business on a sole trader or limited company basis. If the products are from EU member states then you should have no worries about import duties.

So, it's time for some grass roots thinking like:

1). Your market. Do some serious studying what similar items a SELLING FOR, not the start price, or Buy It Now prices. An awful lot of items on ebay go round and round unsold.

2) Margins. Work out the cost to buy, the transportation costs, the costs to list on ebay (never assume it will sell first time every time) as in listing fees and final value fees, costs from using Paypal. Be ruthless about this as those pesky costs soon mount up and the last thing you want is to end up at break-even, or worse still, a loss.

Don't make it any more complicated than that for now. Register as a sole trader with HMRC if the numbers pan out and keep accurate records of all your purchases, expenses and income transactions.

 

[cambridgeshire]

So, it's time for some grass roots thinking like:

Thank you very much for the answer. Then, I guess, it is absolutely okay legally for a sole trader to buy things from EU and sell them in the UK. (I just try to avoid doing anything that is not allowed by law or doing something incorrectly and then receive a fine from tax authority/customs/whatever authority or bureau.)

Yes, my first action (along with reading the Business for Dummies book ) is to test the eBay market for my planned items. I already bought a few samples, which are being shipped to me in these days, and as soon as I receive them I will list them on eBay to see how high the bids go / how quickly the buy it now items are sold. I know the wholesaller prices, the shipping cost, already bought boxes, sealed air/loose filler, labels etc. and enquired at Royal Mail / couriers about the inland shipping costs. So far it looks okay, but will have to see how the samples sell. I checked similar items on eBay, using "show finished" and I saw that certain types of these items are sold at nice price. Thank you once more.

 

[Kernowman]

Thank you very much for the answer. Then, I guess, it is absolutely okay legally for a sole trader to buy things from EU and sell them in the UK. (I just try to avoid doing anything that is not allowed by law or doing something incorrectly and then receive a fine from tax authority/customs/whatever authority or bureau.)

Yes, my first action (along with reading the Business for Dummies book ) is to test the eBay market for my planned items. I already bought a few samples, which are being shipped to me in these days, and as soon as I receive them I will list them on eBay to see how high the bids go / how quickly the buy it now items are sold. I know the wholesaller prices, the shipping cost, already bought boxes, sealed air/loose filler, labels etc. and enquired at Royal Mail / couriers about the inland shipping costs. So far it looks okay, but will have to see how the samples sell. I checked similar items on eBay, using "show finished" and I saw that certain types of these items are sold at nice price. Thank you once more.

Be careful to avoid the 'dutyable' items like alcohol, tobacco and large quantites of gemstones and precious metals like gold. Be aware too (although you have said this about food) that certain animal products, plants and seeds are on a hit list for HMRC to check what comes into the country.