Starting an online business is much the same as starting any Business. If you live in the Outsource Heaven like me, you wouldn’t have to worry. But if you are in the First World Countries, you should visit your City Hall and find out what the requirements for starting a business in your area. In most communities you must register a trade name. Whether you will operate as a Corporation, as a Limited Liability Company, or you operate from home you should inquire about local zoning laws and other registration requirements. All these steps are needed for any business.
There are countless types of E-Commerce sites but you must learn how to do mail-orders.
If you are in the US, you should understand the Sales Tax requirements. You can actually sell and ship merchandise to residents of another state without charging Sales Tax if you don’t have office in that state. However, sales to residents in your state will require collection of Sales Taxes and remittance to your state’s Sales Tax Department. The Federal Trade Commission passed a rule in 1975 requiring you to ship merchandise within 30 days of receipt of payment. Be careful that your product or service is not ‘misleading’ so you can have Truth in Advertising. For example, when giving a guarantee, you must describe in detail how that will be carried out. It all boils down to the fact that you should operate your business honestly, which, by the way, is an essential key to your future success.
If you are going to be buying inventory for your Online Business from distributors you should:
1. Make sure you are buying from a reputable source.
2. Check references and call the Better Business Bureau and Consumer Affairs divisions in the distributors State concerning complaints.
3. Try to obtain Merchandise on Consignment, thus conserving your cash.
4. Look into companies that will ‘drop ship’ on your behalf. As a reseller you can then offer a larger selection of products.
These techniques can Supplement special sales of high mark up items you keep in inventory.
Do a business plan. Visit www.bplans.com. Look at all the valuable resources of information available to you in not only preparing a plan but also to learn how to market your product and how to operate successfully on the web.
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I am a Search Engine Optimization Professional from Bacolod City with a Knack for finding our way to the top of the Search Engines.