E-Commerce has totally changed everything for retail; and it's been growing like a weed:
According to research firm eMarketer, for U.S. ecommerce in 2017, sales grew 15.8 percent, to $452.8 billion. And research firm Statista projects that ecommerce will comprise 15.5 percent of all global retail sales by 2021.But now - there's a lot of buzz surrounding the South Dakota v. Wayfair, Inc. ruling. And although it's super important and will definitely impact online business, it's also a little complicated to keep up with. Here is my best attempt at an overview using the most straight-forward source I could find.
- Supreme Court, June 21: The ruling supported imposing taxes on online sales across state lines. Online retailers are now REQUIRED to collect sales tax from from customers per individual states.
- Not a big deal for big stores
- But is a big deal for small online businesses and entrepreneurs
- Why though?
- States can now choose to tax online sales --> will mostly be executed in all 50 states
- Now small businesses will need to track taxes across all states (and make sure they're following all the standards & rules)
- That requires a lot of extra time, money, and manpower!
- As the taxes roll across the states, small businesses who currently use platforms (eBay or amazon) may not be able to make a profit on those sites anymore
- Big win for brick and mortar --> now that consumers can't go online to skirt state taxes, they might go back to visiting physical stores more.
Many are curious to see how this act plays out, and if they will revisit the issue to find solutions for small businesses that sell online.
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