5 Wholesale Dropship Questions Answered
We would like to take a moment and address 6 wholelsale dropship questions that have recently come in.
(1) Do you pay tax on wholesale goods?
Goods purchased from a true wholesale business do not require sales tax. A true wholesaler will always require a sales tax permit. This permit, which is granted by your state of residence, allows you to purchase goods from licensed wholesale distributors without paying sales tax. You, however, would be required to charge sales tax to residents of your state. You would then remit the sales tax to your state’s department of treasury.
(2)Does a wholesale distibutor pay tax?
Well, a real wholesale distributor, will not pay sales tax because sales tax will be charged by the retail sellers who buy goods from the wholesaler. When we use the words wholesale or wholesaler, we mean businesses licensed as wholesale businesses. Many businesses talk about wholesale prices and suggest that they are wholesalers when, in fact, they are not. If a business doesn’t require a sales tax permin, it is not a true wholesale business.
(3)How do you find a DVD distributor?
Good question. Well, you can try searching on the Internet, but even though the big three wholesale distributors of DVDs do have an Internet presence, they are very hard to find. They are not concerned about being visible on the Internet, as their sales are not from Internet marketing, per se. We recommend that you try this wholesale dvd list if you are serious about selling DVDs. Keep in mind that DVDs are very competive market and the profit margins are small.
(4)Does Salehoo have brandname products?
Salehoo is an online directory of wholesale, dropship, liquidation and closeout, and factory product distribution sources. Salehoo itself does not sell or distribute products. Salehoo is like a rolodex or phonebook. It provides the contact information and also attempts to verify the legitimacy of all sources listed. Some of the businesses listed in the Salehoo directory do provide brandname products.
(5)Is Salehoo a reputable business to buy from?
Again, Salehoo does not sell products. Salehoo is, however, a reputable online directory of product distributors. Salehoo give you the contact information to businesses distributing many different kinds of products.
If you think this would be of help or interest to you, here links below will provide more information on online wholesale product sourcing.
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