Ebiz update for January
February 1st, 2009 by KenricI thought I’d make a state of the economy post about my ebizes. The month of January turned out to be the worse month ever for my Ebiz1. Ebiz1 had 20 sales with a gross revenue of $2700. My previous worst month was $3500 in sales and that was the first month I was in business. Luckily, I have ebiz5 that took up the slack bringing in $2200. I should note that January is not a good month for my products as it is a summer and fall product. Things just started to pick up near the end of the week.
However, the overall month was still very slow when compared to last January where I did $3700 in sales.
Profit wise I’m not sure how this January compares because I have stopped all PPC campaigns on Ebiz1, whereas last year I was spending about $300 a month.
Remember I wrote about my Ebiz2′s sale back in December. Well it turns out I had to refund that order because my supplier is an idiot. This supplier makes a product that is apparently in decent demand. So far, all of my email inquiries have been for a particular kayak. If that wasn’t the case, I would drop their entire line from my store. But it so happens that this kayak has a $200 margin and is in demand. Every time I call them for updates I feel like I’m talking to a car salesman. Alot of talk, nothing happening. The guy has a bunch of stories all the time. I wonder how they stay in business.
Normally I would get mad. But I think of the other side of the coin. If he’s like that to me, he’s probably like that to other people. Hopefully other store owners get frustrated and will not want to sell his kayak. Anyway, once this particular kayak comes in stock again. I will order a bunch and store them myself so I have control on just this product. Then I’ll probably increase my price and offer super fast shipping.
Posted in Making Money Online | 2 Comments »
Stumble it!
Hello,
I have been reading your blog for a long time and I am too in process of setting up an online store.
I had few questions, would appreciate if you can answer:
1. Do I need to form a LLC or Corp for this on-line store? I am not sure how much I will be selling yet. I don’t think I will need a separate business checking account for this store.
2. If I don’t form an LLC, can I still show business expenses(Like google PPC, etc..) on my tax return as qualified business expenses?
3. Do I need City, County business license? I know its different for each city but what do you do?
4. Do I need an EIN?
5. Do I need to collect Sales Tax on products I sell to customers in My State?
If I add up all these licenses and fees, it comes out close to $400-$500 and I not even sure if my store will work. Can I just run the store for couple of months and then start getting these licenses.
Sorry for long comment, but I think it will help your other readers too. I hope you can give a detailed response.
Thanks again.
By G-series on Feb 10, 2009
Hi G,
You don’t need to form an LLC or Corp right away. You can start as a sole proprietor and use your social security number. However, many suppliers may require an EIN number. You will need a city or county license to start and you have to collect tax on in state customers.
By Kenric on Feb 10, 2009