Dropshipping Problems :(

admin_20

Hello Everyone Here!

So, I started my online dropship store. Worked for fewer weeks on it and managed to find several dropshippers. I already got orders worth $3500 within first month with decent profit margins now. It is all good start for me.

Now i ran into a problem. Suppliers keep asking me for a "Resale Certifiate" while since i live out of USA, I guess there is no way to provide them such certificate i guess. One supplier told me, they cant process my orders without it.

Is there anyone here who manage to sell products without Resale Certificate? I think, i can register an LLC company in USA and get an EIN. Should that work (or convince) most of suppliers?

I have no issues paying sales taxes if applicable but i don't understand if it will work for me since i live outside USA and sales tax is state level tax and so not applicable to me.

I am from Asia and Soon moving to Canada (Permanently), Is there any way to register reseller certificate from Canada and supply it to US drop shipper?

Thanks

-- Manish

entrada_collection

Hello,

We have a home decor website. You might be interested in checking it out. Those are no the prices you will reveive. We have discounts for whosale or drop shippers.

Sincerely,

Viviana Cervantes

Drop Shipping Director

Essentail Decor INC

viviana@essentialdecorinc.com

323-583-9883

entrada_collection

Hello,

We have a home decor website. You might be interested in checking it out. Those are no the prices you will reveive. We have discounts for whosale or drop shippers.

Sincerely,

Viviana Cervantes

Drop Shipping Director

Essentail Decor INC

viviana@essentialdecorinc.com

323-583-9883

irene_salehoo

Hi Manish,

The resale license applies to USA based resellers only. You just need to inform the suppliers where you are presently located, and ask help from them to determine what documents will be required from you.

admin_20

Hi,

Thanks for reply. :)

Just talked to them and they said, they can accept tax ID (Which is EIN if i am not wrong) and i can easily get it with many online service correct?

fm1234

Don't use an online service -- they may or may not even get you the right thing. As a non-resident you need an ITIN, not an EIN. You can get one directly from the IRS Link hidden: Login to view.

Frank

admin_20

Don't use an online service -- they may or may not even get you the right thing. As a non-resident you need an ITIN, not an EIN. You can get one directly from the IRS here.
Frank

Thanks Frank. I didn't know about ITIN.

I have two options (1) Register a company in US and get EIN (2) Get ITIN, What is advisable?

-- Manish

fm1234

If you are selling primarily into the American market, it might work to your advantage to get a US-domiciled company set up with an EIN and bank account and all that, but since an ITIN is free and requires no third party involvement or consulting, it might be the cheapie way to get in and test the market before you commit serious resources to infrastructure. Unlike product, you can't sell infrastructure -- it's a "dead investment." Something you probably will need to spend, but will never directly get your money back (even if it leads you to make money, it's just a tool as much as your computer or a roll of packing tape is.)

Frank

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