Stockists & Distributors

I've been toying with the idea of running an online business for a while but hadn't hit on what I'd like to sell - until now.

The products come from America and they have a form on their site for people interested in becoming a re-seller. I've filled it in but am now impatient to wait for a reply so am hoping those in the know can clue me in to a couple of things.

They have a distributor for Australia based in QLD. You can become a stockist of the QLD distributor. Their form won't let you proceed without a business name and ABN, neither of which I have yet (sort of) as it's still a fledgling idea and I want info first.

So, my questions are these -
I got an ABN years ago for a business which I never went ahead with. Is my ABN still valid or does it expire after a certain time or if not used? I've never been asked to renew it. Is an ABN tied to a business or a person? If you're in multiple businesses do you have multiple ABN's or one ABN you can use for anything/everything?

Is a distributor the 'king pin' for a country and it then in turn supplies to stockists, or could I be a distributor in the same country (different state) too? I'm asking 'cos I don't know if that's a rule or law or if it's up to the main business.

With all the talk of charging GST on imports and OZ retailing hurting what's it like importing from USA? What are the current laws/rules governing importing.

Anything and everything anyone can tell me would be appreciated.
 
The geographical area of the distributor is agreed to in the contract you sign with the head importer.

Your ABN is still valid but is it in a company/trust name or is it a personal ABN? Careful with this.

I believe that importing attracts GST on foreign goods. There's also duties on goods that attract a customs duty - this includes things like clothes etc.
 
I do think a search of government web sites would be the best step to find out about GST and any possible restrictions, duties or other nasty gotchers :eek:

Seem to recall during the debate that GST is charged on all commercial importing for resale, private usage stuff is exempt up to $1k.

I would also be having someone have a look at the contract and be getting a report on the financial and ethical status of the company you are dealing with.

I would think that should you sell something here in Oz and there is a problem with it later on, you may find that you are held responsible for any compensation or fines that are levied by the courts.

I would be hastening slowly, the guy in Brisbane may be legit or may be hopeless and effect the reputation of the product.

With the net these days the world is a much smaller place.
 
The main company in America has great products, great marketing, great everything basically + bricks and mortar address. It's just they deal with stockists rather than direct to public. Fine. They also have some distributors around the world and the Oz one is in QLD- also with a bricks and mortar address. They've been around a while, seem quite legit etc. but there's no stockists in my area.

So for me to get the products I have to buy from QLD as a personal shopper (too expensive) or become one of their stockists (I want to be rich not make them rich). I bought one of the products on ebay from USA for $11.27 + $9.95 postage - $21.22. The QLD distributor is selling the same thing for $24.10 + $10.00 postage - $34.10. $13.00 more to buy it within your own country!!

I've emailed the main company about becoming a distributor and haven't got a reply yet.

I've been thinking of using a USA buying site who'll do the shopping for me like www.myus.com If I keep it under $1000 I should be right - yes?

Anyone used this site or a similar service?






I do think a search of government web sites would be the best step to find out about GST and any possible restrictions, duties or other nasty gotchers :eek:

Seem to recall during the debate that GST is charged on all commercial importing for resale, private usage stuff is exempt up to $1k.

I would also be having someone have a look at the contract and be getting a report on the financial and ethical status of the company you are dealing with.

I would think that should you sell something here in Oz and there is a problem with it later on, you may find that you are held responsible for any compensation or fines that are levied by the courts.

I would be hastening slowly, the guy in Brisbane may be legit or may be hopeless and effect the reputation of the product.

With the net these days the world is a much smaller place.
 
The $1,000 limit is only for gifts etc. If you are constantly sending through gifts to the one address under $1,000 - then Customs will get suspicious and investigate you for duty evasion.
 
Would the QLD distributor be able to stop you from selling the product in Australia as you did not go through them.

Also if the US site already has a geographical distributor, they should refer you to them and they will not deal with you direct. The QLD distributor would have paid for rights. This is from what I have seen in my hobby business importing shoes.
 
The $1,000 limit is not just for gifts ec...

If the Qld business is an exclusive distributor you will need to deal with them or find a distributor in another country who will deal with you.

The distributor here can not stop you importing and selling the item unless it is books.

The manufacture could stop supply to your supplier if they find out where you are getting your stock from.
 
That's what I was wondering. I never knew that I didn't know exactly what a distributor was until now. That's why I started the thread to see if there are common ground rules for ALL distributors or if it's to do with the contract you negotiate at the start. Maybe they do only have distrib rights for QLD. They have a search function on their site to find your nearest stockist and when I put in my post code and a 50km radius it came up with nothing.

Hi Ollie,

A bit more info on GST from the ATO.

http://www.ato.gov.au/businesses/content.aspx?doc=/content/13193.htm

As far as the Qld person is concerned I guess it depends if they have exclusive rights to Australia. It may be that they have the QLD rights and supply Aust because no one else is. Certainly worth asking isn't it :)
 
Olly, it's my understanding you can have up to 5 business under your one ABN.

Our online division is trading under the existing ABN. Can always separate them down the track.

I've used a similar site for US purchases. Be aware depending on the product you're selling - if it's a flammable substance, they won't ship it over to you as they only use airmail (well the co. I use does anyway). Not doing it anymore regardless, only made half a dozen US purchases when we thought the local distributor was going to cut us off. Now just buying it from the Aussie distributors - about 20% more expensive give or take, but it saves a lot of messing around and much easier for stock control.

All the best with the online venture - our's has been an outstanding success. Be aware, if it takes off you could be seeing some loooong hours, though that's a good problem to have. ;) I'm currently working 7am every day till 10pm non stop including most Saturdays and Sundays. Will look into additional staff next year after the Christmas mad season is over.
 
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