Drop Shipping Best Practices

http://www.doba.com/drop-ship-articles/all_about_drop_shipping_articles/drop_shipping_best_practices.html

By Stuart Lisonbee, Doba Education Specialist

In my article, "The Value of Drop Shipping," I sing the praises of drop shipping in helping you reduce costs both in time and money and more efficiently ship product. You can maximize the power of drop shipping by embracing the following three drop shipping best practices:

• Choose your drop shipper wisely
• Focus on margins as a dollar amount
• Research products carefully

In the following sections, I explain each of these practices in greater detail.

Choose the Best Drop Shipper

With drop shipping you lose some control over inventory and shipping. To minimize the risk of being unable to fill a customer's order, choose a drop shipper who offers the following:

• Quick shipping
• Large inventory of in-stock items

Focusing on Profit Margins in Dollars

To cover shipping and handling costs, a wholesale supplier has to charge you more for each item it drop ships than for items you buy in bulk. You can still find drop-ship items that garner up to 100% profit margins, but high-percentage margins are in short supply on drop-ship items.

The key to boosting your profits is to focus on margins as a dollar amount rather than as a percentage.

If I sell an item that costs me $10, for instance, and I sell it for $20, my profit margin is 100%, but I've made only $10 on it. If I sell an item that costs me $500 for $550, however, my profit margin is a measly 10%, but I've just made $50—five times more than I did on the item with the 100% margin!

With drop shipping, selling a high-priced item carries no more risk than selling a low-priced item.

Researching for Potentially Profitable Products

The beauty of working with Doba is that it connects you with so many dropshippers and suppliers (over 200 at the time of this writing and growing quickly) with a combined inventory of over 1,000,000 products. The sheer number of available products can be overwhelming, and you want to add only those products that offer the highest potential profit to your product line.

How do you choose products with the highest potential for profit? I use the following criteria:

• If your drop ship supplier provides an exportable data file (such as Doba's Data Export Tool), sort the data using spreadsheet software to show items with the highest profit margins (by comparing cost against
  MSRP)
• Compare your cost to the price of items sold on highly competitive sites such as Amazon.com or eBay. On eBay, be sure you're looking at ended items, and not currently running ones
• Compare your cost against items listed on comparison shopping sites such as Shopping.com, PriceGrabber.com, Google Products, Shopzilla, and others
• Many shopping comparison sites will have a "hot list"—of items that are the most popular. Look for these items and compare your cost against the typical retail price

This list is not comprehensive, but gives you a good place to get started. With time, you'll learn new and unique methods of researching products.

At first, you might have to spend several hours a day researching products and narrowing your list, but as you gain experience, you'll be able to slash your research time. I'm now able to find two or three dozen products—with just a couple hours of research—that have the potential to sell for good profits on eBay.

By implementing three simple drop-ship strategies—choose the right drop shipper, focus on profit margins as dollar amounts, and research products carefully—you can maximize the power of drop shipping, minimize your risks, and boost your bottom line.

Register a Business in Canada

http://www.salehoo.com/education/business-setup/register-a-business-in-canada

Education » Business Setup » Register a Business in Canada

Step One: What type of business will you have?

Sole proprietorship: You have complete control over the business. This form of business has low start-up costs and few regulations, but you are personally responsible for any debts and obligations. If you operate under your own name you do not need to register, but if you earn more than $30,000 a year you will need to apply for a GST number.

Partnership: Each partner shares the obligations and profits. This requires a partner agreement.

Corporation: A legal entity. A corporation has higher costs and taxes and more regulations but shareholders have limited responsibility for debts and obligations.

Co-operatives: A corporation controlled by its members.

Step Two: Choose a Business Name

Deciding on a corporate name is not difficult, although it does have to meet certain requirements in order to be acceptable. Normally a search is made when you register to ensure that no other businesses have similar names in the state. You can also register as a numbered-name corporation, although most businesses will find a name useful.

A corporate name is usually made up of:

• A distinctive element
• Descriptive element
• Legal ending.

The distinctive element is the part of the name that makes it different from any other company, for example, in the name "Zebidiah Motors Ltd", Zebidiah is the distinctive element. This does not have to be a name, it can also be a coined word, a descriptive name (e.g. 'Quality', 'Budget'), a Geographic word (e.g. Sahara, Toronto), or a general name (e.g. 'General', 'Community').

The descriptive element of the name describes what the corporation does: e.g. "Electrics (as in Godwin's Electrics Ltd), while the legal ending is "Limited, Incorporated, Corporation" or abbreviations such as "Ltd, Inc. Corp."

You always need to include the distinctive name and a legal ending, however you do not necessarily need to include a descriptive element. So "DashFar Ltd" is an acceptable name.

If your company name uses common or popular names, the chance of it being accepted decrease. If the name is similar to, or the same as, another company in the same jurisdiction as you, then you may be prohibited from using that name.

There are several different name search options available, which will cost between $8-12 per search.

• Use the business names public record at the Companies Branch
• Search online through OnCorp Direct Inc.
• You can also get a NUANS report (New Upgraded Automated Name search), which is a Canada-wide corporate and business name registry. To search this you will need to contact a private service provider.

To register a business name you need the name and address of the business, a description of the business activity that will be performed, and your name and home address.

You can register your business name through the public office of Companies Branch in person or by mail. (Forms are available from the branch or at local Land Registry Offices). The fee for registering a business name by mail or in person at the Companies Branch is $80. You may also register your name at a Local Tax Service office.

Step Three: Choose whether you will incorporate provincially or federally.

Each province has different regulations and costs for registering a business so you will need to search for the name of your province plus register a business. Incorporating federally is a good idea if you wish to do business across the nation and/or wish to protect your company name Canada-wide.

Jurisdiction Current Government Incorporation Fees

• Federal $200
• Alberta $225
• British Columbia $352
• Manitoba $300
• New Brunswick $260
• Newfoundland $250
• Nova Scotia $390
• Ontario $360
• Prince Edward Island $260
• Quebec $300
• Saskatchewan $265

Step Four: Fill out the registration form

To incorporate in your province go to your local company office or website.

• Alberta
• British Columbia
• Manitoba
• Newfoundland
• Nova Scotia
• Ontario
• Prince Edward Island
• Quebec
• Saskatchewan

If incorporating federally, you may be able to do it online through the Corporations Canada Online Filing Center. You will need to register with Strategis Secure Server Facilities to be able to do this.

• Cost: $200
• Payment methods: American Express, Visa, Mastercard.
• Time: Same day service
• All business registration forms available here.

Step Five: Apply for your Business Number

A business number is used for tax purposes and as a business identifier. You may be able to apply for a business number at the same time as you register your business.

To apply for a business number you need:

• Full names and social insurance numbers (SIN) of all owners, directors, partners or officers
• Businesses physical & mailing address

Apply online for a business number here.

How To Set Up a Sole Proprietorship in Canada

How To Set Up a Sole Proprietorship in Canada | eHow.com

The sole proprietorship is the easiest business type to set up in Canada. In certain cases the provincial and territorial governments of Canada will view your business as self-employment for legal and tax purposes. Setting up a sole proprietorship in Canada involves registering a business name, purchasing liability insurance and filing for a federal tax number if necessary.

Difficulty: Moderate

Instructions

Things You'll Need:

• Small business attorney
• Business plan
• Business name

Registration, Insurance and Taxes

1. Step1

   Choose a name for your sole proprietorship and decide whether to apply for a trademark. A trademark is not a necessity, but it offers the highest level of legal protection. According to CanadianBusinessResources.ca, trademarked names for Canadian businesses must be descriptive, distinct and different from any other business name. An example of a name that meets these criteria is "Dave's Candy Factory." "Dave's" satisfies the distinction requirement and "Candy Factory" fulfills the descriptive requirement.

2. Step2

   Perform a name search to ensure that your chosen name has not already been registered. You can choose to allow the governing authority to perform the search for you, but according to amazines.com, submitting your own name search results with your registration paperwork will help to expedite your registration.

3. Step3

   Register your company with the appropriate authority in your province; offices and requirements vary for different territories. Most provinces now allow you to register your business online as well as in person. Follow the link in this article to find a list of provincial and territorial government websites that contain the exact requirements for your chosen province. If you will be doing business in more than one province, you must register your business name in each. Business name registration is good for three to five years, and must be renewed before or on the expiration date. Grace periods are allowed by certain provinces, but it is a good policy to submit your renewal fees early.

4. Step4

   Purchase business liability insurance. As a sole proprietor, you will be responsible for any claims against your business by creditors, which can result in personal financial difficulty if your business is not successful.

5. Step5

   File for a GST/HST registration number from the Canada Revenue Agency and begin to collect sales tax when your revenues pass $30,000. According to canada-esl.com, sole proprietorships in Canada do not have to file separate taxes until they reach $30,000 in annual revenue. As long as your revenue is under this level, all business income will be taxed as personal income, and all business losses can be included as personal tax deductions

What Form of Business Is Best for you?

Ask an Expert

Expert: Michael Fromstein

Dave asked:

I am aware that to register a business as a corporation is more complicated than as with partnerships and sole proprietorships, but how exactly? Also, concerning financial risks with corporations, is the entrepreneur personally liable for an outstanding startup bank loan should the business fail?

Michael Fromstein answered:

Dave's first question was: Registering a business as a corporation is more complicated than as partnerships and sole proprietorships, but how exactly?

"1. Sole Proprietorship
A sole proprietorship is a business owned and operated by one individual. It is not considered to be a legal entity under the law, but rather is an extension of the individual who owns it and therefore does not require any specific legal organisation, except of course, the normal requirements such as licenses or permits. The owner has possession of the business assets and is directly responsible for the debts and other liabilities incurred by the business. Any loans of the proprietorship are identical to personal loans of the individual. The income or loss of a sole proprietorship is combined with the other earnings of an individual for income tax purposes.

2. Partnerships
A partnership is a relationship between persons carrying on a profit-motivated business in common. That is, a defining characteristic of a partnership is that there must be more than one person involved in the business. Any number of individuals operating a business in common can establish a general partnership without any government approval. A general partnership is created by the partners and is routinely registered with the government within 60 days of creation. Registration is relatively easy and primarily involves paying a fee to the government. Determining and documenting the rights and obligations of the partners is much more involved. These rights, responsibilities and obligations are typically detailed in a partnership agreement. It is a good idea to have such an agreement for any partnership. A partnership is a legal entity recognized under the law and as such it has rights and responsibilities in and of itself. A partnership can sign contracts, obtain trade credit and borrow money. Any partner is responsible for all liabilities of the partnership. Creditors often "go after" the wealthier partners first when the partnership does not pay its obligations. When a partnership is small creditors may require a personal guarantee of the partners before granting credit. A partnership does NOT have to file income tax returns or pay income tax. The financial information from the partnership is combined with the personal income of the partners to determine their overall tax liability. Partnerships with more than FIVE partners have to comply with Revenue Canada's reporting requirements.

3. Corporation
A corporation is a separate legal entity which exists under the authority granted by either provincial or federal law. A corporation has substantially all of the legal rights of an individual and is responsible for its own debts. It must also file income tax returns and pay taxes on income it derives from its operations. Typically, the owners or shareholders of a corporation are protected from most of the liabilities of the business. However, when a corporation is small, creditors may and almost all banks will require personal guarantees of the principal owners before extending credit. The legal protection afforded the owners of a corporation can far outweigh the additional expense of starting and administering a corporation.
Corporations must file annual income tax returns with the Revenue Canada (federal) and the Ministry of Finance (provincial) and possibly other provinces in which it does business.
Legal fees for incorporating commonly run from $ 500 to $ 1,000, and government fees, vary depending on provincial ($ 315 in Ontario) or federal ($ 500 ) incorporation."

Dave's second question was: Does one form of operation provide more protection from creditors, that is is the entrepreneur personally liable for an outstanding startup bank loan should the business fail?

"In practice, there is no practical protection for the small business person from the banks. There is initial legal protection only when the business operates from a corporation. However, because banks do not want to assume the risks of carrying on the business when the owner assumes the benefits, banks virtually always require a personal guarantee from small businesses. All the assets of the guarantor are available to the bank to settle the original debt, regardless of whether or not the original loan was to a sole proprietor, partnership or corporation.

There is additional information on this and related subjects in the business resource library at our web site. Much of the above content is contained in our booklet "Starting Your Own Business" {in English and French} in the "Business" section of the Canadian portion of our library."

About the author

Michael Fromstein is a tax specialist with Integrated Professional Specialist Services.

Will the Google-Adobe alliance benefit open source?

Will the Google-Adobe alliance benefit open source? | Open Source | ZDNet.com
Posted by Dana Blankenhorn @ 6:24 am

Google's dalliance with Adobe is turning into a full-fledged bromance.

Blog posts at both Adobe and Google confirming that Flash is being integrated with Chrome read like explanations of a peace treaty.

As with all good treaties, the two sides have been dancing toward one another for years. Tools for importing Flash into Google Android have been around since 2008.

There's also a "great game" aspect to all this. Flash competes directly with Microsoft Silverlight. Apple has made no secret of its distaste for Flash, which is notably not supported on the iPad. This is all about new mobile platforms, competitors to the iPhone and iPad.

An anti-Adobe bias is already trickling into the Apple grassroots, ironic given the two firms' close relationship during the old desktop publishing days of the 1980s.

It should be noted that Adobe has taken some steps down the open source road as its relationship with Google has grown closer. Two Flash platforms were open sourced, and as our Stephen Shankland reports, Adobe is adopting next generation Web standards.

Now, Flash will be bundled, and updated, alongside Google Chrome, so Flash users on Chrome have an easier time of it than those on other browser platforms, who must get the plug-in separately. This is also an all-clear to supporters of Android and the coming Chromium operating system to go with Flash for rich Internet applications.

It may not be an all-clear to open Web advocates. HTML5 and open codecs like Ogg Theora (that latter is supported natively in Firefox) are not going away. Google has bent toward Adobe here just as Adobe has bent toward Google.

The fact remains that Adobe Flash remains proprietary, while Google is all about open source. Can two companies share a technology apartment without driving each other crazy?

Many people don't think so. Early comments on Google's post announcing the tighter Adobe relationship were pretty negative, with one writing simply BOOOO!. The Mozilla Foundation has long warned that Adobe, like Microsoft, has an "agenda" which threatens the open nature of the Internet.

What do you think?

How to Start a Business in Canada

Starting a business in Canada can be a rewarding and profitable experience. There's nothing like owning your own business, and there are few places as nice as Canada for owning your own business. If you have that entrepreneurial spirit, then read on to find out how to start your own business in Canada.

Instructions

Things You'll Need:

• Identification
• Money for filing fees

1. Step1

   Write a business plan. Although you can technically start a business in Canada without one, it is always a good idea to have a business plan that will guide you on your course to success. There are a number of sites on the Internet where you can download business plan templates for free, meaning that all you have to do is fill in the details about the business you intend to start.

2. Step2

   Register your business at the local municipality. Check with your local city government to obtain the address and office hours of where businesses are registered. Once you have registered a business with the local municipality, you will be given a license to conduct business in that area.

3. Step3

   File for your Goods and Services tax (GSA). The GSA is a federal tax, but it may not be required for all business owners. You have to file for a GSA only if your business revenues exceed $30,000 CDN for any 12-month period. If this describes your business, you must register and file GSA with the Canada Revenue Agency. For your convenience, a link is provided in the Resources section at the bottom of the page.

4. Step4

   Register for your Provincial Sales Tax (PST). The PST is a tax collected by the province that your business is located in. You must collect this tax from your customers and pass it on to the Consumer Taxation Branch of the province you operate in. When you register for the PST, you will be given a PST number. Keep this number in a safe location, because you will also be asked for it when you purchase wholesale or tax-free goods for purposes of resale.

5. Step5

   Check with your local province for any additional requirements. There may sometimes be additional requirements that exist in one province but not others. Checking with your provincial government offices will allow you to identify these in advance and to plan accordingly.

China Mulls Real Name Registration for Online Shops

China Mulls Real Name Registration for Online Shops
2010-04-04 15:33:24 Xinhua Web Editor: Jiang Aitao

Supporters outnumbered opponents Sunday in an online poll on introducing a real-name system to online retail registration after China's commerce authority issued a draft to solicit public opinion.

The State Administration for Industry and Commerce released a draft regulation on its website Friday, saying personal information of people applying to start an online store, including their real names and address, would be required when registering with the e-commerce agents.

It also said eligible retailers would be approved by the e-trading agents, and the move would regulate trading behavior and protect consumers' rights and interest.

As of Sunday, a total of 3,727 netizens, or 48.9 percent, were in favor of the regulation in an online survey launched by China's leading web portal, Sina.com., while 43.8 percent of the total 7,608 respondents were opposed.

The poll signalled the real-name system would be officially introduced, which would raise the registration threshold, said an unnamed representative of Chinese e-commerce giant, Alibaba.com. Corp.

"It is a good news for consumers as it will help prevent Internet trading fraud and encourage online retailers to improve their services," said Chen Jiao, a 27-year-old regular online buyer.

But opponents expressed concern that the measure could increase retailers' costs.

"It may incur license fees after registering with real names, which would strain many small e-retailers' finances and curb their development given the backdrop that most of the e-store owners operate on thin profit margins," said Tan Yan, who has run a clothing store in Asia's biggest e-commerce website Taobao.com for three years.

The draft did not mention whether e-store applicants would have to apply for licenses.

At present, online retailers are not required to provide their real personal information when registering e-shops.

Data from China Internet Network Information Center (CNNIC) showed the number of the country's online shoppers jumped 38.9 percent year on year to 87.88 million as of last June. The volume of online shopping in the first half of this year reached 119.5 billion yuan (17.5 billion U.S dollars).