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Ecommerce site set up for non US residents

by adinezer
7 replies
  • ECOMMERCE
    • |
Hi,
I am going to build my ecommerce, and I live overseas.
I understand that to talk with suppliers I need ITIN number, can I use paypal account merchant instead or there is no connection between these two?

Thanks!
#ecommerce #residents #set #site
  • Profile picture of the author onlinecommerce
    Originally Posted by adinezer View Post

    Hi,
    I am going to build my ecommerce, and I live overseas.
    I understand that to talk with suppliers I need ITIN number, can I use paypal account merchant instead or there is no connection between these two?

    Thanks!
    There is no connection between the two.

    I live in Canada but do a lot of business with the USA so my situation may be similar to yours. I got an EIN number which basically gives me business identification in the USA by the IRS. This have been good enough for my goods suppliers and service suppliers (fulfillment center in USA ). I do not have charge US sales tax or file any US taxes. I just report all the income in my home country.
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    • Profile picture of the author HarrisAndrea
      Are you sure you don't need to charge sales tax or file for USA taxes etc? Have you talked to a professional about this? I'm asking because I'm in a similar situation and I don't know if I will need to file any USA tax forms or charge sales tax etc.
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      • Profile picture of the author onlinecommerce
        Originally Posted by HarrisAndrea View Post

        Are you sure you don't need to charge sales tax or file for USA taxes etc? Have you talked to a professional about this? I'm asking because I'm in a similar situation and I don't know if I will need to file any USA tax forms or charge sales tax etc.
        Yes I have consulted my accountant and others on this. I am not entirely sure if this law is applicable just for Canada or applies to other countries also. Basically as long as you do not have a "permanent establishment" in the USA you are not subject to paying us taxes. You do have file a form with them to inform them you are exempt from taxes according to the tax treaty.

        A permanent establishment is defined as "place of management", "office branch", "factory", employees who work directly for your company working in the USA. Pretty much everything else is fine as long as it is through a 3rd party, mainly storage, fulfillment, purchasing, importing etc.

        The US probably has similar tax treaties with other countries also. You can find all the information you need on your countries tax agency website most likely.
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  • Profile picture of the author NickJabber
    Hi onlinecommerce, thanks for sharing your experience - I have been reading and doing research for good Fulfillment companies in usa.
    Would you mind sharing the company name which you use ? and how is your experience so far ? and how much (in %) is fulfillment cost you think to expect for a 2 lb product ( usb cables)

    If any other advice you could give or any other information i should know, please do let me know.

    Thank you
    Nitesh
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    • Profile picture of the author onlinecommerce
      Originally Posted by NickJabber View Post

      Hi onlinecommerce, thanks for sharing your experience - I have been reading and doing research for good Fulfillment companies in usa.
      Would you mind sharing the company name which you use ? and how is your experience so far ? and how much (in %) is fulfillment cost you think to expect for a 2 lb product ( usb cables)

      If any other advice you could give or any other information i should know, please do let me know.

      Thank you
      Nitesh
      Choosing a fulfillment company is not a one size fits all solutions. I give you my 2 cents though.

      Option 1. You have the option of large scale fulfillment operations that are highly automated so offer very little flexibility.

      Option 2. You can choose relatively small local companies that can offer more flexibility but lack automation and may not have a set system for their pick and pack operation. It is very possible that each client they have has their own system. I personally use a company like this and just get them to use shipstation..

      -The majority of large fulfillment centers want large shipping volumes of at least 500 orders a month, they do not want to deal with little guys ( some are ok with doing smaller quantities ). It won't be cheaper either as many places will charge $3-5 + more for additional items. This is before paying for postage also. You may also loose the ability to use things like flat rate shipping envelopes and boxes. On the flip side places like Amazon do have very good pick and pack rates and you can then have your products for sale on Amazon.

      -Using a local small full-fillment center myself I was able to negotiate a decent rate of $3.5-$5 + box cost + shipping cost. For your example of a 2lb cable it would probably cost $9 total ($3.5 pick and pack + $5.50 flat rate bubble envelope ). Also I get them to include my brochures with every order etc.

      Check out the local shipping, fulfillment and pick and pack companies if you require any flexibility. If your fulfillment needs are very simple and fall within the "standard package" I would choose Amazon.

      Other costs to expect
      -storage
      -receiving fees ( some charge them others do not )
      -inventory insurance ( this will cost extra )
      -additional work prepping your inventory to be pick and pack ready

      You really have to be clear in your own head of exactly what your requirements are ( every little detail ) and then choose a place that offers those services at a reasonable rate. Every fullfillment company can be good in their own way but some are just better for certain things.
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      • Profile picture of the author Dermius
        Originally Posted by onlinecommerce View Post

        Choosing a fulfillment company is not a one size fits all solutions. I give you my 2 cents though.

        Option 1. You have the option of large scale fulfillment operations that are highly automated so offer very little flexibility.

        Option 2. You can choose relatively small local companies that can offer more flexibility but lack automation and may not have a set system for their pick and pack operation. It is very possible that each client they have has their own system. I personally use a company like this and just get them to use shipstation..

        -The majority of large fulfillment centers want large shipping volumes of at least 500 orders a month, they do not want to deal with little guys ( some are ok with doing smaller quantities ). It won't be cheaper either as many places will charge $3-5 + more for additional items. This is before paying for postage also. You may also loose the ability to use things like flat rate shipping envelopes and boxes. On the flip side places like Amazon do have very good pick and pack rates and you can then have your products for sale on Amazon.

        -Using a local small full-fillment center myself I was able to negotiate a decent rate of $3.5-$5 + box cost + shipping cost. For your example of a 2lb cable it would probably cost $9 total ($3.5 pick and pack + $5.50 flat rate bubble envelope ). Also I get them to include my brochures with every order etc.

        Check out the local shipping, fulfillment and pick and pack companies if you require any flexibility. If your fulfillment needs are very simple and fall within the "standard package" I would choose Amazon.

        Other costs to expect
        -storage
        -receiving fees ( some charge them others do not )
        -inventory insurance ( this will cost extra )
        -additional work prepping your inventory to be pick and pack ready

        You really have to be clear in your own head of exactly what your requirements are ( every little detail ) and then choose a place that offers those services at a reasonable rate. Every fullfillment company can be good in their own way but some are just better for certain things.
        Thanks for posting, very helpful information.
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    • Profile picture of the author weblanwan
      an old post I know - but please can someone let me know which repackaging companies are available now thanks - still here there are a few still doing $1 to ship back to Amazon ans Amazon FBA
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