Tax Planning for E-Commerce & Online Retail
Selling in one state and shipping from a fulfillment center in another creates sales tax obligations most online sellers never registered for — and by the time a state notices, the exposure has been building for years.
Since the Supreme Court's Wayfair decision, selling enough into a state — even with zero physical presence there — can create a sales tax obligation on its own. Add inventory sitting in Amazon fulfillment centers you don't control the location of, and most online sellers are non-compliant somewhere without knowing it. Marketplace facilitator laws mean some of that collection happens automatically through Amazon or Etsy, some doesn't, and almost nobody is tracking the difference correctly.
We reconcile payment-processor deposits (Stripe, PayPal, Shopify Payments) back to actual gross sales, fees, and refunds — not just the net number that lands in your bank account. We're a Shopify Partner, not just familiar with the platform from the outside.
Photo by Rohit Choudhari on Unsplash
Where E-Commerce & Online Retail lose money, and how we fix it
Multi-state economic nexus building up as sales volume grows into new states, with no sales tax registration to match
A nexus review across every state you sell into and every state your inventory physically sits in, mapped against actual registration and filing status
Amazon FBA inventory sitting in fulfillment centers in states you've never tracked, each one a potential nexus trigger
Sorting out exactly where marketplace facilitator collection applies and where you're still responsible for collecting and remitting yourself
Marketplace facilitator collection creating a false sense that sales tax is "handled" everywhere, when it's only handled on that one platform
Reconciling 1099-K gross payment volume against your books so gross sales, fees, and refunds are all accounted for correctly
1099-Ks from Stripe, PayPal, and Shopify Payments reporting gross payment volume that doesn't match actual revenue once fees, refunds, and chargebacks are backed out
Inventory and cost-of-goods-sold review across your storefront, fulfillment, and accounting systems so they agree with each other
Inventory valuation and cost of goods sold that drifts from what your storefront and accounting software each think you have on hand
Quarterly tax planning that accounts for seasonal, promotion-driven revenue swings instead of a flat annual estimate
Common deductions we check for E-Commerce & Online Retail
- Cost of goods sold, including inbound freight and fulfillment fees
- Payment processing and marketplace platform fees
- Advertising and marketplace sponsored-listing spend
- Software and subscription costs (storefront platform, sales tax automation, accounting reconciliation)
- Warehouse, storage, and fulfillment costs
- Shipping and packaging materials
- Home office deduction for solo or early-stage sellers operating from home
An online seller had grown past economic nexus thresholds in several states through organic sales growth, with Amazon FBA inventory adding a few more on top — none of it registered. A nexus study identified exactly where exposure existed and what marketplace facilitator collection already covered, narrowing the actual registration and back-filing need to a manageable list instead of every state the business shipped to.
Illustrative example based on common situations in this industry, not a specific named client. See a real, anonymized client result on our Results page.
Frequently asked questions
If Amazon or Etsy already collects sales tax for me, am I covered?+
Only on that platform. Marketplace facilitator laws generally require Amazon, Etsy, and similar marketplaces to collect and remit sales tax on your behalf in most states — but if you also sell through your own Shopify store or another channel, that channel isn't covered, and you're still responsible for tracking nexus and filing there yourself.
Does Amazon FBA inventory actually create nexus by itself?+
In many states, yes — historically, inventory physically stored in a state (including a third-party fulfillment center) has been treated as a form of physical presence that can trigger a sales tax obligation, separate from economic nexus based on sales volume. We review both bases together rather than just one.
Can you help if I'm already behind on sales tax registration in some states?+
Yes — this is common, especially for sellers who've grown quickly. We help identify the actual exposure first, then work through voluntary disclosure or registration options rather than guessing at what's owed.
More general questions about pricing, process, and security? See the full FAQ.
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