RE: FN-FORUM: I have a client who....

date posted 17th May 2006 23:51

> he wants a central (eg paypal) account that he is
> in control of that all purchases go through, that he
> is in control. He will then dispatch the goods and
> then forward relevant mark up to the store owners.
>
> Is he allowed to do that?? Is it not the same as selling
> direct to the public ??

It's all about contracts! The buyer thinks they have a contract with the
online store, but they actually have a contract with the wholesaler.

You might be better off looking at this as a straightforward affiliate
scheme to avoid the "money laundering" legal wrangle raising its head (I
looked at something similar to this a couple of years back and those were
the first 2 words the account said!)

The online stores must make it clear who the contract is with and whether
it's affiliate, drop-ship or whatever.

Whichever route your client decides to go down, make sure you get some
legal/accounting advice ...

Night night

Ed