WhereStock, Sales Tax Help for FBA Sellers

WhereStock logoWhereStock is a new online service that helps businesses that sell on Amazon in the USA using Amazon’s FBA order fulfilment service.

A common question asked by online businesses in the USA goes along these lines:

I’m an FBA seller. Does my inventory in FBA warehouses mean I have sales tax nexus in other U.S. states?”

As the Taxjar blog explains, the answer is almost definitely yes.

Sellers might send their inventory to one or two FBA locations, but the nature of FBA as a network of coast-to-coast warehouses and order fulfilment operations means that stock that a seller sends to an FBA warehouse in, say, Tennessee might find its way to South Carolina and Nevada to be closer to customers, optmising stock location to facilitate faster delivery to customers.

Each time a seller’s stock is stored in a new state, sales tax nexus can be triggered, requiring the seller to register with that state and to charge sales tax on orders delivered there.

The problem is that sellers may not realise exactly where there stock is located, as FBA moves it around the country. Consequently sellers using FBA may not realise where and when their business is incurring sales tax liability.

What the seller must determine is in which states they must be collecting sales tax.

This is where Wherestock comes in. It answers the state-by-state sales tax nexus question by providing a single, easy-to-read report listing the states in which the business’s FBA inventory has been stored.

WhereStock is software developed by ExportX in support of its own international e-commerce business operations, and offered as an online service to all FBA sellers.

For more information visit WhereStock.com.


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