So, I am a Retail Dropshipper.
When I sell something on eBay, then I buy it on Amazon and send it directly to the customer.
There are software’s that assist with this. I currently purchase thousands in inventory weekly with my own personal Amazon 5% cash back credit card.
There’s an offer that’s been tempting me. There is a company registered in the USA that offers 10% discounts when purchasing products using a fulfillment account they setup. Basically, the user sends funds directly to the company via Bitcoin, and they setup an Amazon buying account under the name like Software Auto Ordering, and use that to make purchases via Gift Card balance (which equals the money sent + an extra 10% (so send $100 and gift card balance increased by $110).
My first concern is regarding taxes: is there any problems with claiming Cost of Goods sold with that chain of events? (Debit Card -–> BitCoin -–> Gift Card balance used by an Amazon account (not matching my name but) with a name like “Software Company Auto Ordering”?)
My second concern, is there anything I need to do or know in terms of due diligence and Knowing My Customer? Of course the company won’t reveal their source because their customers would cut them out. This is a legally registered USA company with a physical location and the name of the owner is super clear. This isn’t some anonymous guy hiding behind a VPN selling 40% discounted gift cards. The CEO / Owner is on my Skype and he's active in his Facebook group.Still, I certainly don’t want to be associated with or investigated for any sort felony money laundering scheme. Is this 10% discount (on thousands weekly from a legally registered USA LLC) reasonable or suspicious? Anything else I should know or do before I decide either way in regards to due diligence?
FYI They don't only accept Bitcoin. They accept PayPal Mass Payment, and PayPal Friends and family as well, with 5% cashback instead of 10%.
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