Currently, the online business model on international e-commerce platforms has gradually become more attractive than ever. In addition to large exchanges such as Amazon, and Etsy, eBay is especially famous for handicraft products, attracting businesses with very strong activities in this field. Therefore, individuals/business owners who are aiming for international activities choose Etsy exchange, which is becoming more and more popular.
The following article will clarify outstanding advantages such as the benefits when a business establishes a company in the UK, or the US and sells on Etsy and the services that ICOS provides to support businesses to set up a company in the UK. , USA, and effective sales on Etsy.
1. What is Etsy? Sales Trends on Etsy
Currently, Etsy is one of the popular e-commerce platforms in the US, Europe, and other countries around the world besides other platforms such as Amazon, and eBay,… Etsy is famous as a marketplace where Craftsmen, artists, and collectors can buy and sell jewelry, decor, artwork, custom-made crafts, and more.
Etsy not only sells handmade products, and vintage items but also many tangible products such as clothes, publications, documents, design products, etc. So individuals/businesses, businesses Handicraft businesses see Etsy as a marketplace where they can sell their products/services and expand their international clientele.
2. Why should Etsy sellers set up a company in the US/UK instead of using a personal account?
After understanding the benefits of selling on Etsy, Sellers should consider setting up a company in the UK/US to sell on Etsy instead of a personal account. Let’s find out the benefits of creating an Etsy Business account with ICOS.
2.1. Opening a company in the UK/US selling on Etsy helps to deduct business expenses
What factors does the IRS have to determine if a Seller’s selling is a hobby or a business? Regardless of the account type, if the total net income on Etsy is $400 or more, Sellers need to declare and pay corporate or personal income tax.
If as a business incorporated in the UK or incorporated in the US and is classified by Etsy as Sellers and doing business, the account holder may be able to deduct business expenses such as:: Cost of materials; advertisement; shipping… and these deductions may reduce taxable income. If Sellers do business on the Etsy floor under a personal account, it will be difficult to prove and declare valid expenses to deduct the above business expenses.
2.2. UK/US businesses selling on Etsy are more competitive than individuals
An individual who decides to sell on Etsy will encounter many initial barriers: Knowledge, investment capital, policies, and difficult management due to having to do many jobs at the same time (find ideas for products, create images. , product sourcing, sales,…) Therefore, individuals are under a lot of competitive pressure including expertise, product quality, and investment time in building brand channels because of the shortage of human resources and risks. the overall risk of the market.
Unlike an individual, a business that has the capital and human resources available to sell on Etsy will not have to face much pressure on planning or be overloaded with work. A team that handles each job will have more expertise and more competitive advantage.
2.3. Establishing a business in the UK/USA is easy to create prestige on the international trading floor
Establishing a company in the UK or setting up a company in the US are the forms chosen by Sellers to sell on Etsy to increase brand reputation. If the Seller previously had a sales account on Etsy, after establishing his business in the account, this will help improve his position and create great trust with customers.
2.4. setting up a business in the UK/US will reduce the risk of being locked out of your Etsy account
With Etsy’s increasingly tight policy on merchant accounts, many personal accounts are easily suspended due to several reasons such as piracy, security issues, unreliable information, and too many payment terms,… This makes it difficult for account holders who are not always successful.
So to avoid being locked out of Etsy accounts, sellers will have to correctly confirm some copyright issues, sales processes, and reliable owner information. That’s why if a business establishes a company in the UK, USA, etc., the product copyright documents and accompanying legal information will help Selles’ Etsy account be more secure and avoid the rate of being hacked. lock account.
3. What can ICOS support for businesses to set up companies in the UK/USA to sell on Etsy?
To help sellers enjoy the benefits of Etsy, 𝐈𝐂𝐎𝐒 will assist customers with consulting and setting up companies in the UK & USA. Besides, it will support businesses to register for the Stripe payment gateway and advice and support tax issues.
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