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Online sales taxruling good for small stores, owners say

“I’ve been waiting for that to come down the pike for quite a while.” Thompson, who also worked for a number of years as an e-commerce consultant, said he feels this development likely won’t have much of an impact on physical or online retail, but is likely a boon for states — many of which claimed to have lost billions of dollars in sales tax revenue a year under the previous ruling, according to the AP. He said larger online retailers like Amazon and Walmart have long been ready for these rules, and, if independent retailers selling through Amazon also rely on the service for order fulfillment — which trims 25 percent off the transaction — Amazon already handles sales tax remittance, he said. But for smaller online shops that don’t already have the proper sales tax permits or a system to keep track of them all, it could be a “burden,” he said. “For people operating e-commerce operations themselves, collecting sales tax then having to remit it to 50 different places — that’s going to be a chore,” Thompson said, adding his store will continue to do its own order fulfillment — for now, at least. Though there are many systems available to make it simpler, that’s an added cost for those sellers, he said. For example: those who sell through WordPress can use the plugin, he said. “It is the independent merchant like me that has multi-channel selling going on that’s going to have to find ways to navigate it,” he said, while reviewing all the current Amazon listings for his Unguentarii line. “You trade one set of complications for another one.” For independently owned brick-and-mortar stores, however, Thursday’s decision could “level the playing field.” Harold Cattell, owner of Toy-N-Hobby Headquarters along South Broadway Avenue in Geneva, said he’s been looking forward to these rules for “the longest time.” Cattell got into the business of selling model trains, airplanes, boats and other hobby goods more than 11 years ago, after his retirement. The store had to sell “something interesting,” and by his account, there wasn’t much competition in the area — “all my competition is the internet,” he said. The average radio-controlled car could sell for a few hundred dollars he said.

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