Would You Ever Use a 3rd Party Fulfillment House to Dispatch Your Ecommerce Orders?

[martin001]

You only HAVE to charge VAT if you go over the threshold of whatever it is now £64k? can't recall. and you can go first year without charging VAT even if you cross this theshold. By which time I wont even be doing the transaction just the distribution.

Don't really want to get into a massive debate about all this!

 

[jake the peg]

You only HAVE to charge VAT if you go over the threshold of whatever it is now £64k? can't recall. and you can go first year without charging VAT even if you cross this theshold. By which time I wont even be doing the transaction just the distribution.

Don't really want to get into a massive debate about all this!

Sorry, my bad. All these different forms of tax get confusing, but thats why I'm here to learn.

 

[martin001]

hi Jake

no no, don't apologise, sorry if I sounded a little short. Welcome to the foums, there is so much you can learn from so many people on here. Welcome, and enjoy!

 

[SillyJokes]

Hi

Look, I've got to say, it's not my job or business to prove the viability of all this for the client. He is sending all the inventory to me. I am taking all the payments on behalf, and then taking my share out before paying him, I think I hold all the cards in terms of protecting my interests.

If it doesn't work for him he will end the relationship, I am investing a little time and even less cost in terms of speculation on this project, time will tell on the rest I think.

Thanks

M

Sorry, I do keep picking holes in your deal but it's not malicious.

I'm just doing what I'd do if someone offered me a similar set up. If I came up with something you hadn't thought of it could really help you out.

For instance if you are taking payment online, who is paying the transaction fee? If it's you then really you are picking each item for about 15p.

In addition, if you are taking the money, you are taking all the risk in terms of fraud and chargebacks.

On top of that, if you are taking the money then the customers are probably legally dealing with you, not the guy sending you inventory. In other words, you aren't a picking and packing operator, you become the retailer.

On the VAT question, if you turnover £4000 a month it won't be that long before you will need to be VAT registered, especially if you have other income streams.

Anyhoo, you've probably got all this covered too.