Avoiding bureaucracy until I validate my idea using 0 margin?

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New Member
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Is it possible that I run a drop shipping business with 0 margin, just so I can fully avoid bureaucracy all together (taxes, accounting, company, etc)? All my sales would be redirected to the merchants, my profit would be 0, but this way I could test some ideas without fully committing (no separate bank account, no accountant, etc). I could still gain subscribers, likes and followers. And if I decide the idea is worth it, only then I would go ahead and register everything. 

Would this work? 

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Shopify Staff
Shopify Staff
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Hi @color_match 

 

Vincent here from Shopify!

 

I can't comment on what your tax or other administration obligations would be, that is something that should be discussed with a qualified advisor (professional accountant/ tax advisor), but it is definitely possible to run a shop with 0% margin/ profit, or of course to simply run a test shop and not sell to customers at all, and only place test-orders for yourself.

 

If your main concern is having to have a separate bank account, accountant etc., then it may be good to know that in many jurisdictions, you can run a business in your personal name, with your personal bank account, no need for VAT-registration, and a simple administration which wouldn't necessarily require an accountant. I can't say if this is possible where you're based as well, but again this is something a qualified advisor should be able to explain to you, or for example your local Chamber of Commerce or local tax office.

 

Which ideas specifically are you looking to test? I may be able to give you more information or advice, depending on what you're looking to.

 

Best, Vincent


Vincent | Community Guru @ Shopify
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New Member
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Thank you so much for your reply. I have a few ideas, from my own hand made decorations to combining cloths and jewelry by style and color and having them dropped shipped. The problem is that I live in a very, very bureaucratic country. It would cost me both time and money to test things out. I have to think really hard about this. 

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