Reselling Imported Wooden Toys-- Getting Started

Discussion in 'Community Discussion' started by cslewis, Jun 22, 2006.

  1. cslewis macrumors 6502a


    Jul 23, 2004
    40º27.8''N, 75º42.8''W

    For some time my family has considered reselling handmade wooden toys over the web. Since we're completely new to web-based business, what are the forms, fees, and licenses required to start a mail-order, online store? Thanks a ton!
  2. cslewis thread starter macrumors 6502a


    Jul 23, 2004
    40º27.8''N, 75º42.8''W
    I guess there are no online merchants here... :(
  3. balamw Moderator


    Staff Member

    Aug 16, 2005
    New England
    A lot of people like yourself market their wares on existing sites like eBay. Have you considered that as an option?

  4. KeeFX macrumors newbie


    Jun 22, 2006
    Melbourne, Australia
    You should also look into which countries can't import wood products. Here in Australia we're not allowed to. If we do, bam! Large fine and Steve Irwin shouting at us. Crikey!
  5. CanadaRAM macrumors G5


    Oct 11, 2004
    On the Left Coast - Victoria BC Canada
    Nag posts are never the best way to get help
    Since we don't know where you are, or what type of business structure you are setting up, it is really, really hard to answer with any specifics.

    I'll take a stab at it, but the details will vary widely depending on the laws in your jurisdiction.

    You need at minimum:

    Business license to operate a business in the municipality or county. You might not be permitted to run a business employing more than one person from your home. Check your laws

    Sales tax registration with the municipality and/or county and/or state (US) or province and Federal (Canada) -- unless your total business will be under the floor limit for registration. Check your laws.

    Company registration as an importer to bring in the imported goods on a commercial basis. Check your laws -- there are LOTS of them and forms to be properly filled around importing, duties, taxes, customs brokerage, bonded warehouses, etc.

    A relationship with a customs broker, or with the freight company if they provide brokerage as a service.

    A bank account in the business name.

    Either a charge card merchant account through your bank (which may require you to deposit as much as $50,000 in trust against possible fraud because you are an online, untested business), OR an account with an online charge card clearing service (which will cost you 4% - 10% of your gross sales) - there are many options here and all come with significant strings attached.

    Commercial insurance and/or a rider on your home insurance policy that permits commercial operation from the residence.

    An account with a courier and/or post office for sending goods.

    A website with secure payment processing ($$ to $$$$$ to set up, plus monthly hosting), or an account with a service that provides shopping carts and payment processing (will cost you a monthly fee plus 2% - 15% of your gross sales) - there are many options here and all come with significant strings attached.

    Register the company name

    $$$$$ to have your products tested and approved for sale by UL/CSA if there is any electrical components, possibly by other agencies if they are to be sold as toys for children -- checking for things like parts kids could choke on, toxic chemicals in the paint, finish or materials, flammability, etc.

    Incorporation of a company to limit liability in case of problems - including registration fees and annual filings

    Professional accounting services

    Trademark the company and/or product names


    1001 other things.

    Securing reliable supply of goods. Marketing. Filling orders. Business plan.

    Edit--- Actually, I don't know why I even bothered to answer. It's like saying : I want to build a new car from scratch - can someone please send me the list of all the parts I need, where to get them and how to put them together.

    Here is the hard truth: If you can't be shifted to find out the information for yourself, then DONT GO INTO BUSINESS. There is no easy way, and if you don't cover all your bases, which takes considerable effort, you stand to lose much money.

    Variations of this have happened before. Wheel comes off wooden toy. Toddler puts in mouth, chokes, dies. Seller of toy is sued for criminal negligence and loses everything they own, house, savings, and everything that was left went to the lawyers, who have garnisheed the next 20 years of income as well.

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