Sales Tax Made Simple: What Every US eCommerce Seller Needs to Know

Sales Tax Made Simple: What Every US eCommerce Seller Needs to Know

If you sell on Amazon, Shopify, or eBay in the US, you’ve likely heard of sales tax nexus. But what does it mean, and how do you stay compliant? Here’s a straightforward guide for eCommerce sellers managing multi-state operations.

1. What Is Sales Tax Nexus?

Sales tax nexus occurs when your business has a connection (presence) in a state. You can have nexus if you:

  • Store inventory in a state (e.g., via Amazon FBA).
  • Exceed a certain number of transactions or sales in that state.

2. Marketplaces and Sales Tax

Platforms like Amazon and Etsy automatically collect and remit sales tax on your behalf in most states. However, Shopify and WooCommerce sellers often need to register and file manually.

3. Sales Tax Registration

Each state has its own portal. Typically, you’ll need:

  • EIN (Employer Identification Number)
  • Business address
  • Transaction history

4. Tools for Automation

Use tools like TaxJar, Avalara, or Synder to automate filings and track compliance across multiple states.

Final Thoughts

Sales tax may sound complicated, but with automation and proper setup, it becomes a routine process. Startitup Global helps eCommerce founders set up, manage, and automate their US sales tax compliance so they can focus on growth.

Back to blog