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Frequently Asked Questions

Do I need a resell certificate of tax ID number to sell products from a drop shipper?

Drop Shipping FAQs
In order to buy from a wholesale drop shipper, you sometimes need a tax ID number, or resell certificate. The wholesale drop shipper needs to show proof to the government that they can sell to you without charging you a sales tax. However, not all wholesale drop shipping companies will ask you for this information as the tax reporting structure will vary from state to state along with a company's incorporation or proprietorship.

Will a drop shipper supply pictures of their products for my website?

Drop Shipping FAQs
Most drop shippers have pictures of the products they carry. However, the picture quality varies. For example, not all drop shippers carry 300dpi photos. If you are going to advertise in printed publications, they will need photo of at least 300dpi or better.

Where do I get pictures of the products offered by a drop shipper?

Drop Shipping FAQs
The company you select for drop shipping typically has the pictures of their products on file. They can send them to you on a CD or copy them from a location on their website.

Why does a drop shipper need my credit card information on file?

Drop Shipping FAQs
They will need your credit card information on file so they can bill you for the products you order. Remember, as your customers pay you the retail cost of the products, you will need to pay the drop shipper for the wholesale cost of the products to be sent. It is easier for the drop shipper to simply bill your credit card.

What is a blind drop shipper?

Drop Shipping FAQs
A blind drop shipper will ship product to your customers, under your name only. They will not have any of their information (i.e. company name, address, advertising...etc.) on the products they send to your customers.

What is a drop shipper agent?

Drop Shipping FAQs
This is another term for a middleman or someone acting the role of a drop shipper. In most situations, you will want to bypass these folks as they are merely taking a slice of the profit pie. Also, you should note that these middlemen will usually have their company information on your drop ship order.

What is an over saturated drop shipper?

Drop Shipping FAQs
This is typically a drop shipper that an overwhelming amount of businesses are using simultaneously in the marketplace. As a result, many businesses have duplicate product offerings creating a saturated market for those products. This often results in price wars between businesses.

Is a wholesaler the same as an authentic drop shipper?

Drop Shipping FAQs
Not always. Many wholesalers do not participate drop shipping. Some are into drop shipping, but require minimum order quantities. There are some wholesalers who will do single item drop shipping.

What is a Tax ID Number or Resale Certificate, and How do I get One?

FAQ
A Tax ID allows you to collect Sales Tax from your customers. If someone purchases a product from your website in your state, you will need to collect sales tax. If someone outside of your state purchases one of your products, you do not need to collect sales tax. The best place to start when registering your business name is at your local County Clerk's office, or County Courthouse. Some states do this at the State Government.

What is a tax I.D. number? Do I need one?

Welcome to the New Hampshire Small Business Development Cent...
Business tax I.D. numbers (or Employer Identification Number/EIN) are issued by the Internal Revenue Service for the purpose of identifying employers. Since business numbers are not issued by the State of New Hampshire*, many small businesses obtain an EIN for use in purchasing merchandise and supplies at wholesale prices. To obtain a tax I.D. number, you will need to fill out Form SS-4.

Do I need a State Tax I.D. Number?

MarketPro East Coast: Welcome!
In order to sell any merchandise at a MarketPro Computer Show & Sale you must have a VALID State Tax ID for the state in which you plan on selling your merchandise.

Why do I need a Federal Tax ID number?

California Tax Id Number
Your Federal ID number is like a social security number for your business. It is required for business purposes. It helps to make your business legitimate. We can get this for you as well - Click Here

Do I need a Minnesota tax ID number as well as a federal ID number?

FAQs: S corporations
Yes. Register for a Minnesota tax ID number online or call 651-282-5225. TTY users, call 711 for Minnesota Relay. See additional information on registering your business. Yes. Minnesota conforms to this federal treatment. The parent S corporation that owns a QSSS must file a single Form M8 reporting the income, deductions and credits for both the parent and the QSSS as described in Revenue Notice #98-09.

Should my customers pay me first before I pay the drop shipper?

Drop Shipping FAQs
It is always good practice to have the customers pay you first before placing your wholesale drop ship order. Otherwise you risk shipping product to a customer that will not pay you. Then you will be stuck with the bill from the drop shipper!

What is a customhouse broker and how do they help an import drop shipper?

Drop Shipping FAQs
The customhouse broker is licensed by the U.S. Treasury Department to act as an agent for an import drop shipper. They help prepare and file the entry documents, deposits, and releases for good the import drop shipper will be carrying.

What if I find a drop shipper and they have already reached their member quota?

Drop Shipping FAQs
Over the years, many wholesale drop shippers have put caps on the number of retailers they will allow into their program. There are various reasons for doing this practice, but most of it has to do with inventory management, production forecasting, and growth. There is no particular time of year when a cap can be put in place, or opened up. We have found some wholesalers who manage their caps with a first-come waiting list.

Where do I get a certificate of occupancy, register my business and get a tax id number?

City of Burleson
The City of Burleson requires a new business or business that changes ownership to fill out a Certificate of Occupancy form. An inspection is required to receive permanent power. There is a charge based on square footage. For tax id number information, you will need to contact the State Comptroller's Office at 800-252-5555. For information on registering a business name, contact Johnson County Court Clerk's Office at 817-556-6323.
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