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New shop - need help with legal issues


Guest Laichzeit

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Guest Laichzeit

Hi there,

I've just installed and customized my Cube Cart shop called the Deutsche Musik Shop

I set this shop up to sell German music cd's to fans at cheaper prices to many online store. This works in that I don't sell for profit so we only charge shipping rates at what price the postage company gives us. In the end we do not aim to make any profit what-so-ever It's just been set up because of many fans complaining about rediculous shipping prices.

What i would like to know is, what do I have to do about this legal wise? Do I have to register the shop or what? I am based in New Zealand, the shop id hosted in America, and my cd man is located in Germany.

At this stage people can only sell by Paypal. I do not expect to be doing a huge amount of orders so I would really appreciate a little help with setting this up because I don't really want to find myself in trouble anywhere ;)

cheers

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Im not sure about the tax system in New Zeland but check that you dont have to register as a non-profit organisation, if you are non-porfit the should be no charge towards you, but they will monitor you carefuly...

Paypal require you to be verified to recive over a set amount you will have to be registered at atlest a premium acount, but if you register with your government as non-profit you will also be able to sign up for a business acount...

As long as you can always prove that you are non-profit IE keep ALL proof of payment to and from you and you are only selling legal items then there is NO laws i know of that you can break...

As i said though check with your local athority in regards of you needing to register as non-profit...

This is the case in the UK though many people still dont register it is a requirement...

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Guest Laichzeit

Ah brilliant atnks so much for ya help.

I'll get into contact with the powers that be and see what they say about me..

Must remember to keep all receipts aswell

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  • 3 months later...

I was interested to read your post about the new shop.

Have you been able to undercut other online retailers? Surely they have such huge buying power that it is difficult to compete. Most of them offer free shipping now anyway (eg play.com, cdwow and amazon).

Make sure that you're not losing money on the shop either. There are a lot of costs involved: eg. webhosting, domain names, paypal fees, postage, packaging, not to mention a large amount of time. I only make a small profit by selling at full retail prices!

All the best.

Chris

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