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got first sale on internet, help!

updated mon 13 mar 06

 

L. P. Skeen on wed 8 mar 06


You do not have to have any kind of license at all to sell anything on =
the internet. You don't have to be registered as a business. To =
collect sales tax, you just add it to the price of your item. A $20 mug =
at 7% tax is $21.40. IF you collect sales tax, then you MUST send the =
tax money in to your state taxing authority, usually on a quarterly =
basis. If you are using a shopping cart, you will set that up =
automatically when you do the setup of the cart. Usually tax is only =
charged on items sold within your own state, but that varies from state =
to state, so check with your accountant.

At shows, one usually sees a lot of "tax included" pricing - mugs for =
$20 and no tax added. That makes things easier at checkout, but then =
you are SUPPOSED to pull the tax portion out of that and send it in. I =
suppose it could also be done on internet sales if one were so =
inclined.....

L
----- Original Message -----=20
From: Robert Fox=20
To: CLAYART@LSV.CERAMICS.ORG=20
Sent: Wednesday, March 08, 2006 7:33 PM
Subject: Re: Got first sale on internet, HELP!


I saw this post and also had a question. I was wondering if you have =
a
website and sell pottery from it, do you have to be registered as a
business? Also, how do you collect sales tax?

=
_________________________________________________________________________=
_____
Send postings to clayart@lsv.ceramics.org

You may look at the archives for the list or change your subscription
settings from http://www.ceramics.org/clayart/

Moderator of the list is Mel Jacobson who may be reached at =
melpots@pclink.com.

Janna Marcilla on wed 8 mar 06


Hi everybody,

Okay didn't quite think this through. My whistles got put on a website
and I didn't think anyone would really want one. I just wanted feedback
about why the whistles were not selling. Well, 4 people want a whistle,
and I don't know how to sell them, I mean, how do you collect payment? I
told the customer that I accept MO and Cashier Checks, no cash, mail is
not safe for cash, I don't have a set up for CCards, Don't even have a tax
license yet. Didn't think I would need one. Do you need one to sell on
the internet? I had no idea I was such a nincompoop. I'm not ready for
success no matter how small.

What do I do first? Is MO and Cashier check okay? Should I accept
personal checks? Do I add tax for my state, NM? What else am I supposed
to be doing? Sorry to be such a pest. I will start looking at archives
right now.

My second big question is this: Another website has asked me to put my
whistles on her website to sell. If I do that are there pitfalls or
problems I should watch out for? SHould I put together a contract of some
kind? Do I need a lawyer? Should I copyright my work before I go any
further? I am totally in the dark, yes I think it smells like sh*t in
here.

Any help at all would be greatly appreciated. I don't know what to do
first.

Thanks, Janna

L. P. Skeen on wed 8 mar 06


Janna,

Your first and immediate problem is, you've made a sale. That's not =
exactly a problem, it's a good thing, unless you don't actually have the =
item on hand, but I'm gonna assume that you do.

Ok, what you need to do is, get the buyer's address with zip code. =
Figure out how much it costs to ship to that person (www.usps.com). Add =
in the cost of the shipping materials and your time/gas to pack it up =
and haul it to the post office (or out to the mailbox, as may be).

Let's say for example you sold the whistle for $20, it costs $7 to ship =
(do NOT forget to insure the package) and $2 for the packing materials, =
another $2 for your time and driving to P.O. That's a total of $31. =
Tell the customer you need a money order or cashier's check or Paypal =
payment for $31.00USD. DO NOT UNDER ANY CIRCUMSTANCES send the item =
before payment in full is received, unless the customer is your mother. =
Even then, you may want to think about it, depending on the mother in =
question. ;)

Now - you take said check/money order to the bank and deposit. Then you =
pat self on back for a nice sale! Also, HOLD ONTO THE INSURANCE =
RECEIPT, because you might need it if the customer claims non-receipt or =
breakage. =20

You do not need a lawyer or license for selling on the internet. If you =
are opening a storefront of some kind, you may need a license in your =
municipality. Usually, you only need a tax license if you're collecting =
sales tax. Sales tax is only collected on items sold to people IN YOUR =
STATE. Usually. Selling over the internet is blessedly tax-free in =
most cases, BUT your state may have rules about that, so check with an =
accountant in your state.

You do not need to copyright your designs unless you just WANT to, and =
even then I don't think it would help much unless you just like =
litigation....and paying lawyers.

I would say do not accept a personal check outside your own area, unless =
you want to wait for funds to clear the bank before shipping. Customer =
might not want to wait that long. If the check bounces, you will incur =
a fee from your bank.

Get a Paypal account. They are free. The only fee involved is if the =
customer pays with a credit card instead of his paypal balance, but if =
you accepted credit cards you'd have to pay a fee anyway, so it's =
negligible. =20

You do need a consignment contract if you let others sell for you. The =
contract should spell out explicitly what is expected of each party, how =
much commission will be paid and on what date it will be paid. If you =
are physically giving the whistles to the website owner (as opposed to =
she takes the order and you ship it out), the website owner should have =
liability insurance for the entire time the whistles are in her =
possession.

Why not get your own website? Gail Phillips (figglywig@att.net) can do =
a great job for you at a very reasonable price, and you can use Mal's =
e-commerce shopping cart for free (www.mals-e.com). Then you don't have =
to pay somebody else commission.

There are other things I'll think of about five minutes after I send =
this, but those are the basics. Check the archives for more =
information.

L
----- Original Message -----=20
From: Janna Marcilla=20
To: CLAYART@LSV.CERAMICS.ORG=20
Sent: Wednesday, March 08, 2006 11:16 AM
Subject: Got first sale on internet, HELP!


Hi everybody,

Okay didn't quite think this through. My whistles got put on a =
website
and I didn't think anyone would really want one. I just wanted =
feedback
about why the whistles were not selling. Well, 4 people want a =
whistle,
and I don't know how to sell them, I mean, how do you collect payment? =
I
told the customer that I accept MO and Cashier Checks, no cash, mail =
is
not safe for cash, I don't have a set up for CCards, Don't even have a =
tax
license yet. Didn't think I would need one. Do you need one to sell =
on
the internet? I had no idea I was such a nincompoop. I'm not ready =
for
success no matter how small.

What do I do first? Is MO and Cashier check okay? Should I accept
personal checks? Do I add tax for my state, NM? What else am I =
supposed
to be doing? Sorry to be such a pest. I will start looking at =
archives
right now.

My second big question is this: Another website has asked me to put =
my
whistles on her website to sell. If I do that are there pitfalls or
problems I should watch out for? SHould I put together a contract of =
some
kind? Do I need a lawyer? Should I copyright my work before I go any
further? I am totally in the dark, yes I think it smells like sh*t in
here.

Any help at all would be greatly appreciated. I don't know what to do
first.

Thanks, Janna

=
_________________________________________________________________________=
_____
Send postings to clayart@lsv.ceramics.org

You may look at the archives for the list or change your subscription
settings from http://www.ceramics.org/clayart/

Moderator of the list is Mel Jacobson who may be reached at =
melpots@pclink.com.

Darrell Walker on wed 8 mar 06


Hi Janna,

You might look into opening a PayPal account, many folks are set up
to send payment via PayPal, and it gives them the flexibility to pay
on line from a variety of funding sources. You can even send
invoices and such.

-Darrell

Sue Beach on wed 8 mar 06


Janna,
Lots of others may reply with more experience than me, but take a deep breath
and relax.
Check out David Hendley's site. He sells on line, does not take ccards & has a
good system for handling the transactions with ease. That is
http://www.farmpots.com

If the customer has contacted you directly, then just tell them you take
checks/money orders, add something on for shipping, and tell them you will mail
the whistle after you get their payment. If you have not set up for sales tax
collection, you should not collect it until you get set up.

Sue

Quoting Janna Marcilla :

...snip....
>
> What do I do first? Is MO and Cashier check okay? Should I accept
> personal checks? Do I add tax for my state, NM? What else am I supposed
> to be doing? Sorry to be such a pest. I will start looking at archives
> right now.
>
> My second big question is this: Another website has asked me to put my
> whistles on her website to sell. If I do that are there pitfalls or
> problems I should watch out for? SHould I put together a contract of some
> kind? Do I need a lawyer? Should I copyright my work before I go any
> further? I am totally in the dark, yes I think it smells like sh*t in
> here.



--
Sue Beach
sbeach at iquest dot net

Steve Dalton on wed 8 mar 06


I recommend going with Pay Pal for your online sales.
Check them out at paypal.com I would also recommend
getting a business license and charging tax to those
in your state.

Another thing, I know you didn't mention it, check out
the United States Postal Service website, usps.com
This is a quick and easy way to figure out postal
charges. Enter in the total weight, including packing
material and get your shipping charges.

Also, always include Shipping Insurance. This will
save you a ton of headaches.

Steve Dalton
Clear Creek Pottery
Snohomish, WA

--- Janna Marcilla wrote:

> Hi everybody,
>
> Okay didn't quite think this through. My whistles
> got put on a website
> and I didn't think anyone would really want one. I
> just wanted feedback
> about why the whistles were not selling. Well, 4
> people want a whistle,
> and I don't know how to sell them, I mean, how do
> you collect payment? I
> told the customer that I accept MO and Cashier
> Checks, no cash, mail is
> not safe for cash, I don't have a set up for CCards,
> Don't even have a tax
> license yet. Didn't think I would need one. Do you
> need one to sell on
> the internet? I had no idea I was such a nincompoop.
> I'm not ready for
> success no matter how small.
>
> What do I do first? Is MO and Cashier check okay?
> Should I accept
> personal checks? Do I add tax for my state, NM?
> What else am I supposed
> to be doing? Sorry to be such a pest. I will start
> looking at archives
> right now.
>
> My second big question is this: Another website has
> asked me to put my
> whistles on her website to sell. If I do that are
> there pitfalls or
> problems I should watch out for? SHould I put
> together a contract of some
> kind? Do I need a lawyer? Should I copyright my
> work before I go any
> further? I am totally in the dark, yes I think it
> smells like sh*t in
> here.
>
> Any help at all would be greatly appreciated. I
> don't know what to do
> first.
>
> Thanks, Janna
>
>
______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change
> your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be
> reached at melpots@pclink.com.
>

catjarosz on wed 8 mar 06


Hey Janna,

there is a real WORD for this but it escapes me at the moment... The jist
is the person sends a check in mail and once it goes thru the bank and
doesnt "BOUNCE" you then ship the work.

Now for shipping some inclued the packing in with the price of the pot and
others charge a flat fee. Others charge 7% .. Depends on what it costs in
materials to ship. Thats up to you to make the decision that fits your
situation best.

THen Shipping costs are added in and if you know the size of the box and
approximate weight you can get estimate on shipping/insurance costs via
UPS or USPO. I believe there is a chart you can goggle up. Or you can
guesstimate and I would guesstimate OVER and assure the buyer that if the
costs are less than you will send them a check for the difference even if
its only 1.00...

State TAX.. if your shipping out of state most of the time you dont
have to collect state tax... the rules are changing all the time on this
so make sure you check with your Dept of REvenue if you need to collect
tax.. if you ship IN STATE you are definitely required to collect it.

About the web site that wants to sell your whistles for you .Again " ASK"
them what they"WANT" for the privledge of doing this. Again "DO NOT" ship
anything if you dont have the money in hand...
Maybe you can just sell them your work and they can add the mark up
to the product ? The trouble with all this is having product available to
sell and when customers contact you in person your able to relay the
imfo...
ps this is just my opinion not some hands on experience so take it
for what it is..

I hope this helps some and that some of the other folks that know where to
find shipping charts will send in the links and add any other imfo they
want including the WORD for not shipping till the check arrives and clears
the bank...

ps people /customers dont get upset over this and understand the wait
period so dont feel like your insulting them.

Cat Jarosz in the mnts of NC enjoying spring time weather immensely !!!

Tony Ferguson on wed 8 mar 06


Janna,

I have been selling online since 1997. Have them send you a personal check, money order, or cashier's check. Let them know when the money clears the bank you will ship. If using paypal, set up an account there https://www.paypal.com and they can pay you with just about any form of payment--and keep in mind they will deduct 2.9% for the transaction--but is secure and certified (if they are verified). DO NOT TAKE anything other than paypal out of the country or you are asking for a potential world of hurt.

Tony Ferguson


Tony Ferguson
...where the sky meets the lake...
Duluth, Minnesota
Artist, Educator, Web Meister
fergyart@yahoo.com
fergy@cpinternet.com
(218) 727-6339
http://www.aquariusartgallery.com
http://www.tonyferguson.net

---------------------------------
Yahoo! Mail
Bring photos to life! New PhotoMail makes sharing a breeze.

Robert Fox on wed 8 mar 06


I saw this post and also had a question. I was wondering if you have a
website and sell pottery from it, do you have to be registered as a
business? Also, how do you collect sales tax?

Janna Marcilla on thu 9 mar 06


Thank you all so very much! I couldn't have gotten through this without
you all! I panicked (sp?)

I will put a plan together with all your suggestions.

Thanks again,

Janna

Cindy Gatto on thu 9 mar 06


I am speaking from experience from NY state I am pretty sure laws change
from state to state but you can go to your state's web site for Dept. of
taxation and finance and get the details In NY state you are required to have a
certificate of authority to charge sales tax which you are required to do if you
are selling things then you are supposed to give that sales tax to the gov't
basically it makes you a tax collector Now on one hand you have sold one mug
was it? I don't know how much of a red flag one mug is going to raise if you
get my drift but on the other hand are you planning on selling your work in
earnest- over the internet, at craft shows etc? If so you might want to look
into going legit. Besides it feels kinda nice to have the legal document that
says your official-or at least it did to me until it came to the paper work
-but that's a whole different topic! On the the other side listen to what
everyone is saying get the money first. I have dealt with UPS where I have sent
things COD When they deliver the package UPS collects the money then sends you
a UPS check so it is a guaranteed check It takes less time for the customer
to get their stuff so it's an option Good luck and congratulations!

Cindy Gatto & Mark Petrin
The Mudpit
228 Manhattan Ave
Brooklyn, NY 11206
718-218-9424
_www.mudpitnyc.com_ (http://www.mudpitnyc.com/)
mudpitnyc@aol.com

Cindi Anderson on thu 9 mar 06


Hi Janna
Most cities/counties require you to have a business license to sell even if
you are just a home office. Obviously, based on other responses, not
everyone does that. But I can pretty much guarantee that if you call your
city they will tell you you need a business license.

You definitely need to collect tax on sales to your state or any other state
where you have a presence. A presence means that you sell there, live
there, etc. So if you put your whistles on a website in a different state
you/they will probably have to collect sales tax in that state also. You
will need a business license and a sellers permit in order to collect sales
tax and submit it to your state. If in fact this other website sells your
whistles for you and is in another state, I would have them collect and
submit the tax on your behalf so you don't have to register in two states.

Another fun thing is figuring out how much sales tax to collect. There
every state is different. In California we had to collect the state and
county portion of the sales tax if sold into our county, but just state tax
if we sold outside our county. But in Nevada the counties get their share
whether your customer is in your county or not. So we have to collect
different rates for every county in Nevada

Cindi
Reno, NV

Gary Navarre on sun 12 mar 06


On Thu, 9 Mar 2006 13:32:31 -0500, Janna Marcilla wrote:

>Thank you all so very much! I couldn't have gotten through this without
>you all! I panicked (sp?)
>
>I will put a plan together with all your suggestions.
>
>Thanks again,
>
>Janna

Hay Janna, Crew,

Over the last couple years I studied many of the suggestions you received
on selling on the net. Then last Christmas season I put in the basics. Went
to Dickinson County and regestered "Navarre Enterprises", because there will
be a number of product lines in my little empire of the Id. I was supprised
it still costs ten bucks, same as in Kalamazoo in '76 & '80's. Then I
created a Paypal. I had done some practice shipping a couple times with
gifts and settled on FedEx and created an account. They seemed the least
expensive and customer service was easier going than elsewhere. Then I
needed a product and a ginney pig so Gail Phillips was kind enough to
volunteered and order some Christmas wreaths for people around a couple
states. Got some boxes from work, made the fresh wreaths, and shipped with a
card from Gail. That went well but Wayne's card got lost in the shuffle.
Sorry guys! This dry run went good enough I intend to take a limited number
of orders next year. I would vary much hesitate if someone came along with
an idea for me to make a whole lot of sales faster than I could handle.
Wouldn't want to have to outsource.

I decided to simplify shipping and figuring an average based on zones. The
difference in change wasn't much. The cost of packaging and tax would be
included. That will keep it simple. My neighbors wife does taxes and said
not to be concerned about the insignificant amount in sales yet. The state
tax license is next if these ideas grow. I do plan on doing some local art
fairs in another year if I have some pots. Like I always say, "Can't sell
what I haven't got." Some people take to this business stuff but I'm not
much of a professional businessman even though I'm close to a cusp with
Capricorn from Sagittarius. Must be my planets were really lined up when I
was born. Seems like my head is always floating around on ideas like on a
big old kite with a vary long string. Lord, cut me loose so I may float with
heaven above and earth below. Stay in there!

G in da UP