• Selling items

I wish to start a business
My Business Model is
We buy products from Amazon, Flipkart, BigBasket, Blinkit etc on Discount on high discounts using offers. (Items Include Shampoo, Detergent and other Cosmetic items) and sell them in my Shop at discount
On there bill
I get retail invoice on my personal name from them.

What is the worst case scenario if some company people come to me asking why i m selling at discount or anything?
Or if they accuse me of selling duplicate or anything
Or any issue with GST
Asked 1 year ago in Business Law

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4 Answers

You can buy from Amazon B2B services and then can sell in which ever mode you want. Amazon B2B is selling and purchasing between two businesses with valid GST number. that way you can also get input tax credits for your sales.

2) you should be careful that products are genuine and not counterfeit 

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

Yes, you can buy products from Amazon and sell them from your own shop.

However, there may be certain restrictions depending on the product and your location. It's always a good idea to check Amazon's terms of service and your local laws before proceeding. 

Some sellers on Amazon might have restrictions on reselling their products.

Additionally, be sure to factor in any fees, shipping costs, and taxes when determining your pricing.

 Be prepared to handle customer inquiries, returns, and any issues that may arise with the products you sell. Good customer service is essential for building a positive reputation.

Establish clear return and refund policies and communicate them to customers. Make it easy for customers to return products if needed.

 

T Kalaiselvan
Advocate, Vellore
87143 Answers
2339 Consultations

They can’t ask you that why your are selling in discount it’s your choice any false complaint filed by them will not be of any use

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

Dear Client,

 

Starting a business involving purchasing products from online retailers and reselling them at a discount can potentially lead to various challenges. If representatives from Amazon, Flipkart, or any other retailer inquire about your business model or why you're selling products at a discount, they might be concerned about their brand image or policies. They may ask questions about how you're procuring products or why you're selling at prices lower than the market. If someone alleges that the products you're selling are counterfeit, duplicate, or not meeting quality standards, it can lead to legal issues and damage your reputation. This could happen if customers complain or if the original manufacturers or retailers investigate the source of the products. Handling Goods and Services Tax (GST) is crucial. Ensure that you have proper GST documentation for the products you buy and sell. Any discrepancies or issues in your GST filings could lead to fines, penalties, or legal action.

To mitigate these risks, be transparent about your business model and the sources from which you procure products. Keep records of your purchases, invoices, and transactions to demonstrate the authenticity of the products and their sources. Ensure the products you're buying are authentic and of good quality. Maintain receipts and documents showing the legitimacy of your purchases. Familiarize yourself thoroughly with GST regulations and ensure you comply with all legal requirements. If questioned by suppliers or authorities, be open and honest about your business model. Having a clear explanation for your business practices and how you're maintaining product quality and authenticity can help alleviate concerns.

Running a business involving the resale of products comes with inherent risks, especially concerning product authenticity and supplier relationships. Be diligent in your operations, maintain accurate records, and be prepared to address any concerns that may arise.You can reach out to us for further assistance

Anik Miu
Advocate, Bangalore
10173 Answers
120 Consultations

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