it all adds up

State Sales Tax Coming to Your Favorite eTailer

According to eMarketer, the US Supreme Court struck down a 26 year old law last week that permitted pure play online retailers to avoid charging sales tax if they weren’t physically operating from that state.

With online sales forecast to grow six points from 10% of all retail sales to 16% by yearend, or more than $525 billion in sales, traditional retailers have felt at a competitive disadvantage against etailers for the past two decades.

On the flip side, online merchants have argued that having to manage tax collection for 45 states would be unduly burdensome for small etailers.

Will this move truly level the playing field and drive people back to bricks and mortar shopping for purchases they’ve shifted to online? Probably not.

For more details on the court’s ruling and implications, visit eMarketer.