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Tax, Fees & Compliance Across Selling Platforms

Selling on Amazon, Walmart, eBay, Shopify, and other ecommerce platforms comes with complex requirements for taxes, fees, and compliance. Inconsistent handling of these elements can hurt profitability, lead to account suspensions, or even legal trouble. This guide breaks down what ecommerce sellers need to know about staying compliant while managing platform-specific costs.

Understanding Marketplace Fees

Each marketplace charges fees that can significantly impact your bottom line. These usually include:

  • Referral Fees: A percentage of each sale (e.g., 15% on Amazon for most categories)
  • Subscription Fees: Monthly seller account charges (e.g., $39.99/month for Amazon Pro)
  • Fulfillment Fees: Vary by item size and shipping method (especially for FBA or Walmart Fulfillment Services)
  • Payment Processing Fees: Shopify and PayPal deduct a percentage + fixed fee per transaction

Tip: Use a centralized tool like EcomBiz.AI to track and factor these fees into your pricing and profit calculations automatically.

Sales Tax Collection & Remittance

1. Marketplace Facilitator Laws

Most major platforms are now responsible for collecting and remitting sales tax on your behalf in states where required. This applies to:

  • Amazon
  • Walmart
  • eBay
  • Etsy

But: Shopify and WooCommerce store owners are responsible for their own tax collection and remittance.

2. Nexus Rules

If your business has a physical or economic presence in a state, you may have nexus, which requires you to:

  • Register for a sales tax permit
  • Collect tax from customers in that state
  • File returns periodically (monthly/quarterly)

Use tax automation platforms (like Avalara, TaxJar, or integrations within EcomBiz.AI) to stay compliant.

Income Tax & Accounting Considerations

Regardless of the platform, you must report:

  • Gross sales income
  • Cost of goods sold (COGS)
  • Fees and expenses

Best Practices:

  • Maintain clean, automated records using software like QuickBooks or Xero
  • Sync your ecommerce data with your accounting platform through EcomBiz.AI or native APIs
  • Work with a tax professional familiar with multichannel ecommerce

Regulatory & Product Compliance

Different platforms enforce product-related rules:

  • Amazon: Strict rules on safety, labeling, authenticity, and category-specific documentation
  • eBay: Prohibits certain used or recalled goods
  • Walmart: Requires GTIN (UPC/EAN) and prohibits listing duplicates
  • Shopify: Merchant is liable for all compliance (return policies, tax, shipping, product legality)

Failure to follow these can result in:

  • Listing removals
  • Account warnings or suspensions
  • Legal penalties

How EcomBiz.AI Helps

EcomBiz.AI simplifies compliance and fee management by:

  • Auto-calculating per-order fees and net profits
  • Syncing tax data across platforms
  • Providing reports for income, sales tax, and expenses
  • Alerting users to category or marketplace rule changes

Conclusion

Selling across multiple platforms is a powerful growth strategy—but only if you stay compliant. Understanding the tax rules, fee structures, and regulatory requirements of each channel can help you protect your business, reduce risk, and maximize your profit. With tools like EcomBiz.AI, merchants can automate much of this complexity and focus on growth.

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