I think an important point in regards to corporation tax which you covered, (although I may be mistaken, it was a while since I studied business) is that after your corporation/LLC pays the 19% corporation tax, your shares of the profits are only free from tax for the first £2,000 afterwards you then have to pay 7.5% in dividend tax upto £46,000 (so you're actually paying 26.5% against a sole trader. It then it goes upto 32.5% (+19%) above that and then there's a higher band when you earn over £150,000 which I believe is around 38% (so at that point you're paying 57% to tax) However there are ways to get tax relief and claiming expenses can reduce this further. The best way in which you can capitalise from this though is to pay yourself a salary to £11,850 (so that you don't pay any income tax) Then get the £2,000 free dividend. From there you'll either have to work out whether it's better to pay yourself a larger wage, or pay the premium from the dividend. but some really good tips especially when it comes to the professional look of the store and keeping things simple to start! :)
Jack, My friend thank you for providing content like the one in this video. A lot of people like to talk about the pretty and the shiny things with dropshipping business, but then they forget to talk about this types of information. In reality, you'll need both to be successful at any business but people just don't like to face the true reality which will eventually hurt them in the future. Thank you, my friend.
Thanks for watching guys! Videos coming this week are; - Starting from Day 1 Shopify Strategy for 2020 - 3 Winning Product Idea for 2020 - Subscriber Store Reviews
This is the first video ive seen that actually talks about all of this. I just thought ill figure all this out when/if i start making money with dropshipping.
Business aside, I really enjoy your personality and this soothing way of talking, makes it really enjoyable to watch! Thanks for the content, will drop a sub and check out your other vids, keep it up!
Hi Jack, this was very useful video, thanks for sharing, what is the best place for a beginner to start their drop shipping business, also what are the key upfronts things and cost to consider 1. Setting up a bank account 2. Setting up as a Ltd Company or sole trader 3. Investing in the email domain, contact number, virtual address do we need to think of the facebook ads costs and anything else
Amazing video I'm in england (Bournemouth) started 2 month ago doing drop shipping I love it There is not enough hours in the day to learn at the moment
Hey what’s up bro. Shout out from California 📍 I just ran into your channel. Loved the content and subscribed. Appreciate you. I’m looking to get started in this business. I have a question. For the contact business info, do you recommend a P.O. Box or a virtual office? I read online that virtual office scans your mail and sends you a picture of it, but what if it’s physical items getting mailed to you?
Great video! Not many videos out there with information like this. Just one quick questions - what is the best credit card to get for someone just starting dropshipping from the UK?
Hi Jack, first thanks for your videos, its great, quick question, did you registered the Ltd in the virtual office/PO box? Or are you just using them as a address for your website? Thanks in advance
Hi Jack. Thank you very much for taking the time to make these videos! I just have a question about order fulfilment. As far as I know, when we are dropshipping a customer has to pay for the product first where this payment goes into our account. If that is the case why do we need to apply for a credit card since we already will have a sufficient amount in our account?
thank you for making this video, I was looking for a video like this in the morning but there wasn't any online. My reason was there were and I'm sure still are getting their money getting a lot of money held by PayPal. And I didn't know when and which taxes to pay in the Uk
Re limited companies - you may only need to pay 19% in corporation tax as a limited company, but if you want to take any profits out of the business to help fund your own lifestyle etc, don't you need to then pay income tax on top of this? Therefore, you would end up paying more in tax at a limited company, unless you always keep the cash within the business?
Correct. But there are tax exemptions and other things that you need to know about in order to navigate through the minefield of taxes. Speak to ecommerce accountants and they'll be able to guide you. If being set up as a LTD company was a bad thing then majority of ALL the successful ecommerce guys would NOT BE SET UP as LTD companies
Hi Jack, Do you get a personal credit card or do you get a company card? Could we use a personal card we already have, but use it only for the business expenses?
What if you are unemployed and signing on, do you still need a business licence together with a re-sell licence BEFORE you even begin to try and sell on Shopify ?
If you use a PO box do you use it as your business address on shopify? I set up my shop with my business address which is a virtual mail forwarding address provided by an agency. Shopify is asking me for proof of address want to see a utility bill and such which I don't have to accept shopify payments. What can I do? Does it work with a PO box then?
Can you please elaborate on the "reward credit card" and how i can get one. I just checked my bank app(Monzo), couldnt find any such information. I will appreciate your advise on this. Thank you
Do you have a step by step guide in starting a drop shopping store, such as connecting your add to cart to aliexpress and best way to create a video ad?
Really informative video! I have been looking to start a print on demand business and taking note of the backend requirements you mentioned in the video. My question was, when building up your social presence through FB ads should the ad-sets be created in a way that doesn't sell the product and more to gain interest in the person viewing it?
Hi Jack. Thanks as always for this UBER useful info. Can I just ask which card gives AVIOS for the UK currently. I like this video as like you started I am there. Getting to the point I feel a winner is close and I can be confidant to make rent and get out of the sole trader flow with the risk and hassle of going through my personal account. Man it sounded like you were me and will be this year. I have a seller with google ads but facebook is yet to work for me. When I crack that code I am going to make rent and also make the world a better place :) pay it forward so to speak.
Hi Jack, Do you set up a limited company for each different store and therefore set up a new business bank account with each new store launch?. love the videos, great information for the UK crowd
I have already asked this question. Which is more easier/profitable. Drop shipping from 1 Ali Express to ebay 2 ali express to shopify 3 or buying it in bulk as you did and selling it on ebay ? Thanks Kam
@@JackKitchener thanks jack. May I ask which video? Also basically your saying I can order a bunch of things in bulk after doing research and i can sell it on shopify with out doing drop shipping? Is it better
Great video! Lots of great info. You should do an in-depth video on the so called "death of epacket" and how Trump's withdrawal of the US from the universal postal union will potentially affect dropshipping, also things like by how much would international shipping would increase when shipping from China if this were to happen and if that should be a concern for new dropshippers. You probably have a very good understanding of this and your opinion would be very helpful
Hi Jack, I'm 16 years old and currently in a full time apprenticeship ( since September). My annual salary is at £11,000 and I've been learning about dropshipping for a while now.I turn 17 in May, and I have the financial stability to start up a dropshipping business, however I'm just concerned about the legal side of starting a business at 17. Any advice would be greatly appreciated.
Hi Sam, an accountant will give you better advice but I’m sure you need to be 18 to start and LTD and get a Shopify account. Don’t let this detract you though, you’re starting at a great age so find a work around
Excellent content as usual one question have you or do you ever get Facebook bans even randomly for no reason and if so how do you handle them or is this all in the past for you now once you establish some rappor/trust with them? I'm constantly hearing of this kind of problem and aside from stripe and PayPal and shopify holding payments which is bad enough there are workarounds for those but the Facebook situation is the thing that concerns me the most. I've been in business for many years and I've never encountered a business model that is so susceptible to randomly having the Rug pulled from beneath your feet to this extent, especially with Facebook being the key part of the drop shipping business model.
Most of guru think that PPE is bad for your pixel because it gives poor data, they arent willing to purchase from you, thats why they all go in WC to optimize better, What's your thought about the difference between using PPE or WC at first ????
Depends what your goal is! If you're trying to get engagement then PPE is obviously the best. If you're trying to get PUR then WC is the best! Different objectives for different goals
@@JackKitchener i know the difference but i mean the difference in data, if i want to sell and fin the best adset which one i will use because if you try WC you will not have social proof even if you have a winning product
Jack, I have only been dropshipping for about a month and currently I’m dropping to eBay. My views seem to be racking up nicely but my click through and conversion rates are not following suit. Have you got any advice? My profits are no more than a quid an item so I can’t really drop that much more.
Hi Jack, I've been looking to start up a dropshipping business with a friend, we're both finding products that we like and have a sound vision of how we want our site to look and how we will create and get our ads out but we are struggling with the back end of creating a limited company and in turn business bank account, we are both business beginners and not sure how paying ourselves out of post taxed profits happens - we plan to meet with a financial adviser prior to starting these is that something you'd recommend? also in setting up a limited company can you host multiple shopify stores with different names from one company as a parent company?
Hi mate, yes you can do both of these things but this is something you will have to ask your accountant as they will advise you based on your current circumstances
Hey Jack loving your vids. You gave me the kick up the arse to do something useful while I'm off work. I was wondering where would you put all the contact details? I'd like to put address and phone number in the footer but I don't think it's possible with my theme (Brooklyn).
Hi Jack, About taxes: do you send your accountant invoices from every order you get on shopify? do you use any apps for this? or do you send him just paypal and credit card statements? Thanks in advance
@@JackKitchener Thanks for this reply though! But my accountant Is telling I need invoices. I need to send invoices to my customers , get invoices from my supplier, etc so that's not true? I'm living in Belgium so it should be almost the same as UK I guess..
I have watched sooooo many videos on Dropshipping and your videos are the only ones that make sense! I throughly understand it now! Thank you.
I think an important point in regards to corporation tax which you covered, (although I may be mistaken, it was a while since I studied business) is that after your corporation/LLC pays the 19% corporation tax, your shares of the profits are only free from tax for the first £2,000 afterwards you then have to pay 7.5% in dividend tax upto £46,000 (so you're actually paying 26.5% against a sole trader. It then it goes upto 32.5% (+19%) above that and then there's a higher band when you earn over £150,000 which I believe is around 38% (so at that point you're paying 57% to tax) However there are ways to get tax relief and claiming expenses can reduce this further.
The best way in which you can capitalise from this though is to pay yourself a salary to £11,850 (so that you don't pay any income tax) Then get the £2,000 free dividend. From there you'll either have to work out whether it's better to pay yourself a larger wage, or pay the premium from the dividend.
but some really good tips especially when it comes to the professional look of the store and keeping things simple to start! :)
Jack, My friend thank you for providing content like the one in this video. A lot of people like to talk about the pretty and the shiny things with dropshipping business, but then they forget to talk about this types of information. In reality, you'll need both to be successful at any business but people just don't like to face the true reality which will eventually hurt them in the future. Thank you, my friend.
Jack you are one of the few TH-camrs I trust quality content. Keep it from fan from Jamaica 🇯🇲
Wow, thanks Abuna!
Thanks for watching guys! Videos coming this week are;
- Starting from Day 1 Shopify Strategy for 2020
- 3 Winning Product Idea for 2020
- Subscriber Store Reviews
This is the first video ive seen that actually talks about all of this. I just thought ill figure all this out when/if i start making money with dropshipping.
please could you do a video on the best credit cards for businesses(e-commerce / drop dropshipping ) in the UK .Thanks
Business aside, I really enjoy your personality and this soothing way of talking, makes it really enjoyable to watch!
Thanks for the content, will drop a sub and check out your other vids, keep it up!
You are brilliant no bs. Well done very helpful
Thanks Alan 🙏🏻
Hi Jack, this was very useful video, thanks for sharing, what is the best place for a beginner to start their drop shipping business, also what are the key upfronts things and cost to consider
1. Setting up a bank account
2. Setting up as a Ltd Company or sole trader
3. Investing in the email domain, contact number, virtual address
do we need to think of the facebook ads costs and anything else
Thanks for some much revelation regarding this business!! Awesome information‼‼
awesome!! Its very helpful must admit , good research!! And its UK based ;)
I want to start a dropshipping store but need guidelines. Thanks for the video
Excellent foundational advice. This is the advise people need to maintain a long term and highly profitable business.
Thanks Jeff!
Fantastic video mate. Really refreshing to have a UK expert discuss relevant stuff (I'm in the UK too)
Thanks Umesh, all the best for 2020!
@@JackKitchener you too mate 👍
Really helpful video! When setting up a separate bank account do you need to open a business account or just a separate personal?
Amazing video
I'm in england (Bournemouth) started 2 month ago doing drop shipping I love it
There is not enough hours in the day to learn at the moment
Great video jack!
Thanks!
A really value bomb 🔥🔥 🔥💯 it doesn't sound important but it is one the most important things👍 appreciate bro
Really good video 👌🏻. I’ve been looking for something like this, and it’s great you’re based in the UK like I am.
Hey what’s up bro. Shout out from California 📍 I just ran into your channel. Loved the content and subscribed. Appreciate you. I’m looking to get started in this business. I have a question. For the contact business info, do you recommend a P.O. Box or a virtual office? I read online that virtual office scans your mail and sends you a picture of it, but what if it’s physical items getting mailed to you?
Thank you, I am new to this very helpful, I picked up a few great tips :D
Glad it was helpful!
Great video! Not many videos out there with information like this. Just one quick questions - what is the best credit card to get for someone just starting dropshipping from the UK?
Hmm not sure off the top of my head, always stuck with Lloyds. Will consider this and perhaps make it a video topic :)
Jack Kitchener that would be great! I see a lot of people talk about the American Express credit card.
Hi Jack, first thanks for your videos, its great, quick question, did you registered the Ltd in the virtual office/PO box? Or are you just using them as a address for your website?
Thanks in advance
Can u make multiple stores on one shopify account. Can u do a video explaining how to do this and how that will work with Facebook ads manager
Not to my knowledge, 1 store per email for Shopify. Facebook wise you can manage many ad accounts through a business manager
Hi Jack. Thank you very much for taking the time to make these videos! I just have a question about order fulfilment. As far as I know, when we are dropshipping a customer has to pay for the product first where this payment goes into our account. If that is the case why do we need to apply for a credit card since we already will have a sufficient amount in our account?
thank you for making this video, I was looking for a video like this in the morning but there wasn't any online. My reason was there were and I'm sure still are getting their money getting a lot of money held by PayPal. And I didn't know when and which taxes to pay in the Uk
Would you have a different LTD for each store you open or use different trading name under the one LTD?
Re limited companies - you may only need to pay 19% in corporation tax as a limited company, but if you want to take any profits out of the business to help fund your own lifestyle etc, don't you need to then pay income tax on top of this? Therefore, you would end up paying more in tax at a limited company, unless you always keep the cash within the business?
Correct. But there are tax exemptions and other things that you need to know about in order to navigate through the minefield of taxes. Speak to ecommerce accountants and they'll be able to guide you. If being set up as a LTD company was a bad thing then majority of ALL the successful ecommerce guys would NOT BE SET UP as LTD companies
Hi Jack, Do you get a personal credit card or do you get a company card? Could we use a personal card we already have, but use it only for the business expenses?
What if you are unemployed and signing on, do you still need a business licence together with a re-sell licence BEFORE you even begin to try and sell on Shopify ?
If you use a PO box do you use it as your business address on shopify? I set up my shop with my business address which is a virtual mail forwarding address provided by an agency. Shopify is asking me for proof of address want to see a utility bill and such which I don't have to accept shopify payments. What can I do? Does it work with a PO box then?
When you make a separate bank account should this be a current account or a business account? Thanks
Can you please elaborate on the "reward credit card" and how i can get one. I just checked my bank app(Monzo), couldnt find any such information. I will appreciate your advise on this. Thank you
Hi Aleesha, google it. Some banks offer them and some don’t
Do you have a step by step guide in starting a drop shopping store, such as connecting your add to cart to aliexpress and best way to create a video ad?
Yep :) Check out my Oberlo integration video
Jack Kitchener sorry I couldn’t find it, do you have a link?
Really informative video! I have been looking to start a print on demand business and taking note of the backend requirements you mentioned in the video. My question was, when building up your social presence through FB ads should the ad-sets be created in a way that doesn't sell the product and more to gain interest in the person viewing it?
Depends what your goal is really. If it’s too build a following then content should give people a reason to come back to your page
Hi Jack. Thanks as always for this UBER useful info. Can I just ask which card gives AVIOS for the UK currently. I like this video as like you started I am there. Getting to the point I feel a winner is close and I can be confidant to make rent and get out of the sole trader flow with the risk and hassle of going through my personal account. Man it sounded like you were me and will be this year. I have a seller with google ads but facebook is yet to work for me. When I crack that code I am going to make rent and also make the world a better place :) pay it forward so to speak.
Hi Calvin, awesome goals, I wish you all the best. The credit card I use it with Lloyds
Would you advice using personal credit card for payments or is it better to take out a business credit card?
It depends what you're looking for really, different card providers offer different benefits
Hi Jack,
Do you set up a limited company for each different store and therefore set up a new business bank account with each new store launch?.
love the videos, great information for the UK crowd
Yes I do, if a store is going to be long term then I always keep it seperate
Hey, when you target worldwide, do you use auto switch currency?
Yes, along with Shopify multi-currency checkout.
Do you use the app multi currency checkouts+
No Shopify have there own integration
I have already asked this question. Which is more easier/profitable. Drop shipping from
1 Ali Express to ebay
2 ali express to shopify
3 or buying it in bulk as you did and selling it on ebay ?
Thanks
Kam
Hi Kam, I’ve answered this on previous videos! Buying in bulk is definitely more profitable for me but all 3 work :)
@@JackKitchener thanks jack. May I ask which video? Also basically your saying I can order a bunch of things in bulk after doing research and i can sell it on shopify with out doing drop shipping? Is it better
Great video! Lots of great info. You should do an in-depth video on the so called "death of epacket" and how Trump's withdrawal of the US from the universal postal union will potentially affect dropshipping, also things like by how much would international shipping would increase when shipping from China if this were to happen and if that should be a concern for new dropshippers. You probably have a very good understanding of this and your opinion would be very helpful
Hey jack, I’m apart of the Shopify group and I did email you this question recently, can you show us how to make good ad creatives please?
I’ve done a couple videos on this in the past 🙂
Hi Jack, I'm 16 years old and currently in a full time apprenticeship ( since September). My annual salary is at £11,000 and I've been learning about dropshipping for a while now.I turn 17 in May, and I have the financial stability to start up a dropshipping business, however I'm just concerned about the legal side of starting a business at 17. Any advice would be greatly appreciated.
Hi Sam, an accountant will give you better advice but I’m sure you need to be 18 to start and LTD and get a Shopify account. Don’t let this detract you though, you’re starting at a great age so find a work around
Should you still apply to be a limited company if you are testing a product?
Depends on your goals and circumstances. I mention these in the video
Excellent content as usual one question have you or do you ever get Facebook bans even randomly for no reason and if so how do you handle them or is this all in the past for you now once you establish some rappor/trust with them? I'm constantly hearing of this kind of problem and aside from stripe and PayPal and shopify holding payments which is bad enough there are workarounds for those but the Facebook situation is the thing that concerns me the most. I've been in business for many years and I've never encountered a business model that is so susceptible to randomly having the Rug pulled from beneath your feet to this extent, especially with Facebook being the key part of the drop shipping business model.
Never to be honest. In the 4 years now I've been running ads it hasn't happened once! Do things right and legit and you'll be absolutely fine
Most of guru think that PPE is bad for your pixel because it gives poor data, they arent willing to purchase from you, thats why they all go in WC to optimize better, What's your thought about the difference between using PPE or WC at first ????
Nizar MHAMDI good question
Depends what your goal is! If you're trying to get engagement then PPE is obviously the best. If you're trying to get PUR then WC is the best! Different objectives for different goals
@@JackKitchener i know the difference but i mean the difference in data, if i want to sell and fin the best adset which one i will use because if you try WC you will not have social proof even if you have a winning product
You can use the same for both
Can someone plz send me the pdf because the link isn't working for me.
Hi Joseph, DM on insta and I’ll send it to you
Jack, I have only been dropshipping for about a month and currently I’m dropping to eBay. My views seem to be racking up nicely but my click through and conversion rates are not following suit. Have you got any advice? My profits are no more than a quid an item so I can’t really drop that much more.
Organic traffic tends to convert lower. Could be an issue with your store/ product listing
Hi Jack, I've been looking to start up a dropshipping business with a friend, we're both finding products that we like and have a sound vision of how we want our site to look and how we will create and get our ads out but we are struggling with the back end of creating a limited company and in turn business bank account, we are both business beginners and not sure how paying ourselves out of post taxed profits happens - we plan to meet with a financial adviser prior to starting these is that something you'd recommend?
also in setting up a limited company can you host multiple shopify stores with different names from one company as a parent company?
Hi mate, yes you can do both of these things but this is something you will have to ask your accountant as they will advise you based on your current circumstances
Hey Jack loving your vids. You gave me the kick up the arse to do something useful while I'm off work. I was wondering where would you put all the contact details? I'd like to put address and phone number in the footer but I don't think it's possible with my theme (Brooklyn).
Thank you, bro what about if i want to open a UK company from outside UK, do i have to pay the same tax rates as a UK citizen?
To my knowledge a UK registered company will pay UK taxes
@@JackKitchener ok thank you
Do i have to link my bank account on shopify to get paid ? Or can get paid stright to Visa ?pls answer i need to know
Yes you link your bank account
I’m 15 and I have been looking into this for a while, do you think that I would be able to start up at my age?
Hi Jack, About taxes: do you send your accountant invoices from every order you get on shopify? do you use any apps for this? or do you send him just paypal and credit card statements? Thanks in advance
Hi Michiel, the latter. All bank and PayPal statements
@@JackKitchener Thanks for this reply though! But my accountant Is telling I need invoices. I need to send invoices to my customers , get invoices from my supplier, etc so that's not true? I'm living in Belgium so it should be almost the same as UK I guess..
Hi do you respond to Instagram DMs?
Yep, check your DM’s