Computer distributors sell computers they build or purchase from wholesalers and other companies. Computer distributors may sell their products online or from a traditional storefront. Several computer manufacturers like Dell and Hewlett Packard offer Value Added Reseller (VAR) programs. The Internet makes it simple to drop-ship computer systems from wholesalers to customers, limiting your on-site inventory. A fundamental requirement for becoming a distributor is that you must be a registered business and obtain a sales license.
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Things you need
- Legally registered business name
- Sales and use tax license
- Functioning website
Determine how you would like to register your business. Several options exist, including registering as a limited liability company, sole proprietorship, partnership, or corporation. Consult an attorney and accountant or research the tax and personal liability implications.
Select a business name. Search your state’s registered business database to ensure the business name is not already registered.
Complete an Internet domain name search for your business name. This not only helps brand your business online but some reseller programs, like Hewlett Packard, require your e-mail domain name to match your business name.
Complete the forms required to register your business in your state. Submit the forms along with any fees.
Contact your state’s tax entity to request a sales and use tax license. The state assesses sales tax on retail sales. Each purchase you process should include sales tax. The total percentage varies by state.
Determine how you would like to obtain the computers you will sell. You can purchase complete systems from a wholesale company, through a VAR or build your own.
Contact computer wholesalers like Evertek or OutletPC. Sign up for their reseller programs if required. Wholesalers provide complete systems, parts and bare-bones systems.
Contact companies like Hewlett-Packard and Dell to find out about their programs. There is an application process to become an authorised reseller.
Build a commerce website with shopping trolley technology, where your customers can browse your products and purchase items.
Include a method for payment processing. The easiest way to get started is with PayPal. PayPal will let your customers pay with a credit card.
Process your orders as required by the companies you receive hardware from. For example, some companies drop-ship the items directly to your customer. You collect payment, pay the shipper and keep the profit.
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