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Old 03-11-2019, 06:16 PM
 
3 posts, read 1,056 times
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I understand this is a dumb question to some however, I wanted to know the actual benefits of obtaining a wholesale license.

For instance, if you obtain a wholesale license and you buy from a manufacturer do you get a better deal on the price or it is simply way to keep your business legal?
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Old 03-11-2019, 09:51 PM
 
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Are you talking "wholesale license" as in some type of reseller tax license, or do you mean some form of automotive dealers license, or is it a vendor issued license to buy from them at special rates??? The term "Wholesale" can mean many things and when coupled with the word "License", you need to be a bit more specific as to what your talking about.
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Old 03-12-2019, 06:52 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,191 posts, read 53,101,239 times
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A reseller license (state/local) allows you to avoid paying sales tax, since you are reselling and charging tax to others. You can also get lower wholesale prices from some manufacturers and vendors. There is no advantage if you don't have a business, because in most states you have to file and show sales (and pay the sales tax collected) to keep the license.

In our case (WA state) you will also have to pay Business and Occupation tax on your sales.
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Old 03-12-2019, 07:51 AM
 
3,657 posts, read 2,604,230 times
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Quote:
Originally Posted by Flipitskipit View Post
I understand this is a dumb question to some however, I wanted to know the actual benefits of obtaining a wholesale license.

For instance, if you obtain a wholesale license and you buy from a manufacturer do you get a better deal on the price or it is simply way to keep your business legal?
It means you start collecting sales taxes on what you sell and filing tax returns and paying those taxes to the state.

Like others have said, it's usually called a resellers license or sellers permit. And just because you have one doesn't mean all manufacturers will sell wholesale to you, there are usually many other requirements, such as trade references, brick and mortar store, minimums, etc.
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Old 03-12-2019, 03:47 PM
 
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Yes ok I see.

So basically I wanted to buy wholesale on eBay or wherever is the best option..to sell on Amazon.. do I actually need a license to do that?
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Old 03-17-2019, 03:51 PM
 
192 posts, read 41,167 times
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Quote:
Originally Posted by Flipitskipit View Post
Yes ok I see.

So basically I wanted to buy wholesale on eBay or wherever is the best option..to sell on Amazon.. do I actually need a license to do that?

You'll need a business license in your city/county. You may need to collect taxes and pay taxes on your business, profits, etc. As others have said, it allows you to pass down the taxes to the consumer, allowing you to earn a better profit. If you don't have a wholesale lic and you bought a product+taxes and trying to resell that item after all your expenses, you may not make any money.



Usually, to make money selling anything, you have to buy volumes. The larger the volume, the more discount you get. The more discount, the more competitive you are against other competitors. When I talk about volumes, I'm talking about tens of thousands of dollars to hundreds and thousands of dollars worth of merchandise on a weekly or monthly basis.


Be careful what you are getting yourself into. You might end up with a bunch of garbage that you can not dump off to others. I've seen a lot of these wholesale scams in the past. Turns out that the person who buys these stuff end up not competitive at all.
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Old 03-17-2019, 07:19 PM
 
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Oh ok I see
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Old 04-03-2019, 06:56 PM
 
Location: NYC
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Alibaba is the best, you can buy wholesale goods without any license required. Because it is Chinese owned and there's no such thing as licenses. As long as you wire the money and they deliver. Majority of sellers on Amazon are buying stuff off Alibaba and shipping to Amazon then having them process and Fullfilled the sales for them.

I just gave you the tip to how Amazon sellers work.
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Old 04-04-2019, 10:19 AM
 
192 posts, read 41,167 times
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Quote:
Originally Posted by vision33r View Post
Alibaba is the best, you can buy wholesale goods without any license required. Because it is Chinese owned and there's no such thing as licenses. As long as you wire the money and they deliver. Majority of sellers on Amazon are buying stuff off Alibaba and shipping to Amazon then having them process and Fullfilled the sales for them.

I just gave you the tip to how Amazon sellers work.

Do your research. I've read so many scams taking place at Alibaba that it scares me.
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