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  • #979248
    Col123
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    Hi,

    I am currently doing a study into setting up an online business for selling running and training clothing. I am a fitness fanatic and have been buying apparel from a supplier in the UK at less the 50% of the cost in Australia. The brand is not currently sold here and I think equal quality to the big names. I have emailed the supplier and they are willing to sell to me at wholesale prices.

    As I have an IT background I intend to setup an “Internet Store” or buy one and use social media to promote the site via gyms, running clubs etc

    My inital questions are :
    Do I need to register a trading name ? (I have an ABN)
    IS GST applicable ?
    Better to develop a site or just buy a shop front?
    What is cheapest way do receive money (Paypal, CC)
    What is the best way to handle shipping ?

    Look forward to responses.

    Thanks
    Colin

    Also is there any limit on

    #1113048
    Snakeman
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    Col123, I don’t know all the answers but here’s what I can say:

    Do I need to register a trading name ? (I have an ABN)
    A/ Not legally, BUT I suggest you do AND most importantly check for other traders using same or similar names and similar trademarks so you don’t tread on someone’s toes. Otherwise your venture may go pear-shaped v-quickly.
    IS GST applicable ?
    A/ I don’t know, but would guess yes!
    Better to develop a site or just buy a shop front?
    A Website is cheaper, both is better
    What is cheapest way do receive money (Paypal, CC)
    A/ Direct deposit into your bank, but I suggest more payment options gives you more likely clients.
    What is the best way to handle shipping ?
    I don’t know – we use post for small quantities, but others I deal with who send out lots often go with private companies.
    All the best

    #1113049
    Kennethti
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    This question has been asked and answered a number of times; perhaps there should be a sticky post in relation to this?

    In short:

    1. If you are trading in a name other than your own personal name you must register a business name with ASIC.
    2. GST is applicable so long as your revenue per year excees $75,000
    3. Please clarify – do you mean shop front as in entering into a retail store? Retail isn’t for everyone and certainly requires quite a bit of research into a suitable location and investment to fit it out and pay the rent on it for 2-5 years.
    4. Sorry – can’t answer that.
    5. Ditto above.

    You should enter into a written agreement with your supplier in relation to what they would supply to you at how much.

    #1113050
    tmerrill
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    I think your question about what is the cheapest way to accept payment should be more focused on what way does your customers want to pay you.

    For me, I don’t like giving my credit card information out over the internet just to any site. So I love using Paypal. I can still buy things but do not have to give out my cc info.

    Like Snakeman said, you should probably have several options so you can satisfy all your potential customers needs payment wise.

    Hope that helps.

    #1113051
    gregorys
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    Hi Colin,
    <>
    If your turnover is above $75,000 per year, GST registration is mandatory. Below $75,000, it is optional. If you have registered for GST, note that you only bill GST for Australian based customers. GST is not applicable when billing overseas customers. You can find out more here :

    ATO GST Guideline

    If you have an online store, you may have a mix of local and overseas customers which makes it a little tricky to bill your customers. One of the easiest way to handle it I think is to use Paypal. If you set it up correctly in Paypal, Paypal will automatically add or exclude the GST component on your bill based on the customers locality.

    Regards
    Greg

    #1113052
    websitedesigner
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    My opinion (not advice)

    Do I need to register a trading name ? (I have an ABN)

    I would be thinking more about whether it’s worth your time and money to set things up rather than whether things are ‘needed’. Until it’s making money it sounds like a hobby. I would be starting small, testing it make sure there is a business before you think about this sort of stuff (I realise people will disagree with this but that’s what I would do).

    IS GST applicable ?

    As above, I wouldn’t be spending time on this until you know you have a business on your hands.

    Better to develop a site or just buy a shop front?

    I would try to sell on ebay to get a good idea of how hard it is to sell things online particularly in a market with so much competition. It won’t cost you anything, it could be an eye opener.

    Failing that set up a shopify store (can be done in less than 1 day for a few dollars). Don’t buy anything or build anything – again you don’t have a business until you have customers. Test the waters first.

    What is cheapest way do receive money (Paypal, CC)

    PayPal

    What is the best way to handle shipping?

    Offer free shipping and built it into the price. People love free shipping, it simplifies things for you. Jus post stuff yourself via Aus Post to start with to get a feel for the process.

    Hope that helps.

    #1113053
    The Hobbit
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    Dan Norris is correct in everything he said, very sound advice.
    And PayPal will handle your credit card transactions, customers don’t need a PayPal account to use their credit card.

    #1113054
    crikeyinternet
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    websitedesigner, post: 126784 wrote:
    My opinion (not advice)

    What is cheapest way do receive money (Paypal, CC)

    PayPal

    In the long run credit card via a internet merchant facility will be cheaper then paypal.. Sure start off with paypal (not everyone uses it though, it may throw off a few customers too), but if things take off then consider a proper merchant facility & gateway that you can hook up to the site. As long as your site is secure (using SSL) and does not store credit card details anywhere then you can rest assured you’ve done everything possible to protect your customers transactions. Your bank will also make sure you tick off all the requirements before giving you the facility.

    #1113055
    websitedesigner
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    Why would you have an SSL if you aren’t taking credit card numbers? What info needs to be secured?

    #1113056
    Nathan Hartnett
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    Hi Col123,

    Already some great responses here. We run a few e-commerce stores, and have done so for many years. We’ve split tested having a merchant facility and/or PayPal, and found that a merchant facility was too costly and did not increase conversions for our stores. Once upon a time this was not the case, but nowadays PayPal will do the job and do it well.

    Make sure you know your search volumes for the appropriate keywords you’ll be targeting (even if your focus will be on social media, this will still help you get to know your competition, and know what kind of words your customers will be searching for).

    Finally, we believe in “fail fast, fail cheap”. Something like Shopify (as previously mentioned) is fine until you start generating traffic. Until you know that you can get good targeted traffic to your site, spend as little as possible on it.

    Shipping is always painful. If you’re talking about what carrier(s) to use, there may not be a single answer. It is worth checking out as many carriers as you can though, because some will be good for certain items/destinations, while others will be better in other situations. We use Fastway a lot for example, but they can’t deliver to P.O. Boxes, and their delivery times from Brisbane to Perth are atrocious, so we use Australia Post Express for these customers. International orders are also fine, but you need to know your options. If an item “fits through the slot” and can cost as little as $2 to send anywhere in the world. If it’s just a bit too thick, it can cost ten times that much.

    If you’re talking about shipping policies, then free shipping is always good, or free shipping above a certain dollar spend can be a good upsell technique. The trick is to be crystal clear from the moment they hit your site. Everybody hates having to go through to checkout just to find out what the shipping costs.

    Good luck!

    Nathan
    talknbusiness.com

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