The Secret to Cheap eBay DVDs, Tax Permits, and More
Important points to be aware of regarding buying wholesale, regardless of product. Right now, I’m thinking in terms of wholesale dvds. A point not enough people understand is that wholesale dvd is not the same thing, is not synonomous with low cost dvds. All too often, I see advertisements for wholesale goods, but the business is not a true wholesaler.
What is the secret to knowing whether or not a business is a wholesale business? Very simple. Does that business require a state sales tax permit? If the answer is “yes,” then it is a wholesale source. If the answer is “no,” then it is some other kind of business.
All right, so a true wholesale supplier of dvds or of any other product will require proof of your state sales tax permit. You apply for this through your state (usually free and uncomplicated), and it allows you purchase products without paying tax. You then apply sales tax when you sell the items. For the purposes of Internet sales, the only time you will probably ever charge sales tax will be on sales to residents of the state in which you reside.
A true wholesaler is someone who buys from the manufacturer and then sells to the retail market. A “middleman” is someone who buys from a wholesaler and/or liquidation company, and then sells to you, the retailer. This is only shady when the middleman represents itself as a wholesaler. The word wholesale has been wrongly used so much it is almost synonomous with cheap goods, but in business, a wholesale business is a particular kind of business subject to its own business licensing requirements.
So you see how this applies to dvds. A real dvd wholesale source will always requires a state sales tax permit. One other point, although there may be many sources of legitimate liquidated dvds or close-out dvds, there are just a very few true dvd wholesale suppliers, and they provide dvds to most of the major retail outlets. Some companies, such as Walmart, are big enough that they can by-pass the wholesaler and purchase directly from the manufacturer.
One big question that many people who want to sell dvds have is how sellers on eBay can sell new release dvds so cheaply. There are really just two basic reasons why new release dvds may be priced so low, often between $2.50 and $5.00. First, if the dvds are legitimate, factory release, then the eBay seller is selling below cost and taking a loss or breaking even on shipping fees. The second reason is that the dvd may be a fake. A brand new, legitimate, new release box office hit will never sell for $2.50 unless the seller is taking a loss. The reason a new seller might do this is to get people to the auction and to get feedback. A PowerSeller, on the other hand, might do simply because they can afford to take the loss to lure new customers to their auction.
The Secret to Cheap eBay DVDs
I’ve mentioned this elsewhere, but in my opinion, simiply the best guide to wholesale dvds is the Jillian Entertainment directory.
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