After some good experiences with selling on e-Bay am seriously thinking about setting up a business selling using drop shipping. I am going to have to set up my own company to trade with the levels of sales that are possible.
Has anyone got any experience of bookkeeping with a company that deals on e-Bay, any advice that you could provide me on bookkeeping for drop shipping would be most appreciated.
you record your sales as per normal, this is the gross sales prior to any deductions made by Ebay and Paypal. These are expenses that are shown separately. I assume the drop shipper will issue you with an invoice that you will need to pay immediately so there is no complication in the bookkeeping here (in fact I guess it will include shipping so no separate freight invoices). I can't see any complications from a bookkeeping side of things however I have never seen any drop shippers invoices before but they will be set up for customers like you.
