Creating an Online Store with no Taxes
When people start an online business, most of them worry about the extra payments that they have to make such as different taxes and shipping payments. However that is not always the case with online businesses. There are ways through which you can create an online store without paying any taxes. The following show how that is possible.
1. You can drop ship
When businesses use drop ship, you can take orders on your online store, however you do not have to bother with shipping payments and delivery as your vendor or distributor will be responsible for shipping the product to the customer. Therefore you will not have to worry about the inventory as you will be the connection between the buyer and distributor.
This is an easy method of selling your products without worrying about other incurring costs. A customer finds his desired product and then places an order for that product. Once the customer makes the payment and you receive it, you place an order with the vendor at the wholesale price. The vendor will then package and deliver the product to your customer with the logo of your organization. Thus the customer will believe that you have delivered the product to them.
The advantages of this method are that there is no need for inventory or carrying out the shipping of the product yourself. Since there are no inventory costs, the startup cost for the online store is cheaper. You would only require owning a website and once you do you can begin taking orders.
2. You can use a 3PL
3PL is known as a third-party logistics company. Most of the time the 3PL company takes charge of storing your products for you and sometimes they can also assist with customer support as well as product returns. Using a 3PL is not a difficult process. You begin by shipping all your products to the 3PL company. When a customer places an order from your website, your online store will automatically send the order to 3PL and then the 3PL company will deliver the product to your customer.
This method is usually seen as a traditional online store, however it just does not store the products itself nor does it do the product delivery on its own. The advantages of using the 3PL method is that there is no need for you to neither store your products yourself nor do you have to worry about shipping the products. Moreover, your online stores margins are 50% or more which gives you more flexibility on your marketing strategies. If you wish to start a traditional store without worrying about shipping and inventory then using 3PL is your best option. Some of the well known 3PL companies include shipwire.com, shipmyorders.com etc.
3. You can use Amazon FBA
Presently Amazon FBA is the most popular option among online businesses. Amazon FBA stands for “Fulfillment by Amazon”. It has a quite simple process; you begin by shipping your products to Amazon’s warehouse. Once you have done that enter the inventory of your products on Amazon’s marketplace. When a buyer places an order for a product on Amazon, it will package and deliver the product to your customer and provide them with proper customer support.
Using Amazon’s FBA option is quite beneficial as Amazon is in charge of everything so you do not have to worry about anything, moreover you will always get access to the huge customer base that Amazon has. It may be harder to promote your brand on Amazon as people will feel like they are purchasing their products from Amazon rather than you.
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