This blog was last updated on June 26, 2021
From June 7-9, Sovos was at the Internet Retailer Conference and Exhibition (IRCE) in Chicago. Technology solutions abounded over this three-day conference, solving everything from order management to email campaigns. One common thread in the breakout sessions and exhibition hall was: Automate! Retailers are looking to accomplish more with fewer resources – and focusing their employees on activities that drive revenue. Here at Sovos, that’s what we do – we improve your life by reducing the risk and complexity of your unique tax obligations. What does that mean for you?
The Biggest Question We Heard Was, “How do I Deal with FBA (Fulfilled by Amazon)?”
This one is HUGE with massive implications for smaller online sellers. There’s a lot of confusion in the marketplace about this. Does a small seller that’s having orders fulfilled by Amazon have nexus in all states where there’s an Amazon distribution center? The short answer is yes, with exceptions. The difficult piece is determining what those exceptions are and managing them in your system. For any business, this quickly becomes very complex and hard to manage internally. The sellers at IRCE that we spoke with range in size from $100K to $200M annually, with tax departments composed of 1-3 people. Before the advice on FBA came out, these tax departments could barely keep up with the changes in tax for one or two states. Adding another 10-15 states for them is a nightmare! This is where we come into the picture. Sovos has a team of over 50 compliance experts that manage rates and rules for over 13,000 taxing jurisdictions. We take care of compliance so our clients can focus on growing their business – something every seller wants to focus on. We also offer an FBA solution that can meet your tax compliance needs. Do you have questions about FBA or other sales and use tax compliance concerns? Call us today at 1.866.890.3970 to learn how we can support your business.
