Amazon’s tax deal with Massachusetts hurts marketplace sellers

Besides AmazonGo, the other big news in the Amazon marketplace world was their annnouncement to give in to the Massachusetts tax officials. This means that if any marketplace seller had any merchandise in a FBA center in Massachusetts, they had a “nexus” there and must file taxes.

Sellers have no control over where there merchandise is kept. Even if products are shipped to an FBA center in New Jersey, Amazon may move them to Massachusetts without any noticed. Another burden that sellers must bear to work with Amazon, while Amazon provides no additional benefit in return. It’s not necessarily Amazon’s fault, but they have a lot more say, and ways to solve this, than individual sellers.

Another big Amazon story broke this week, and this one will surely have implications that reach far beyond the Commonwealth of Massachusetts: Amazon Gives in to Massachusetts Tax Officials and Agrees to Turn Over Third-Party Seller Data. This is a hot story and a messy affair.

from the post In Case You Missed It: Amazon News Round Up—January 20–26, 2018 at Seller Labs

Andrew @ EcomLoop
EcomLoop founder. I've worked in ecommerce since 2005, beginning with my own ebay store. I've run multiple independent ecommerce businesses on Magento, Joomla, and more recently, Shopify and WooCommerce. I believe marketplaces should be looked at as a sales channel and that all independent businesses should strive to build a direct connection with their audience for long-term success.

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