Amazon imposes tax again! Sellers on the US site will be reaped from July 1

Recently, Amazon US announced that it will begin calculating and collecting sales tax for FBA orders sold to Florida and Kansas starting July 1 .

The following is the original announcement↓↓

The announcement shows that due to changes in local tax laws in the United States, Amazon has added sales taxes in two more states. As of now, more than 45 states in the United States are subject to sales taxes , and the remaining five states are also in the process of negotiating and implementing new tax laws.

It is reported that the U.S. Department of Commerce previously stated that it is expected to bring sales tax compliance to the entire U.S. e-commerce market by the end of 2021. As far as the current progress is concerned, it is expected to be completed on time before the end of the year.

Currently, with the imminent taxation, the costs of sellers on Amazon’s US site will rise significantly. Amazon sellers are trapped by taxes, but Amazon itself has no tax pressure at all. Biden has personally pointed out Amazon’s behavior of not paying taxes.

Although nearly 90% of the states in the United States collect sales tax, the tax rates of each state are actually different, ranging from 6% to 8% . In addition, Amazon is forced to calculate and collect taxes automatically, and the process is relatively silent. Amazon will not remind you for orders that generate taxes.

If the seller has already paid sales tax in this state through a tax consultant ( and has other physical connections in the taxable state ), then Amazon's mandatory tax withholding may cause the seller to pay tax again .

However, there is one thing that Chinese sellers need to pay special attention to. The US levies order taxes directly on consumers , and Chinese sellers do not need to do anything, but this may affect consumers' desire to buy , so sellers should pay attention to pricing settings to avoid a drop in orders.

However, Chinese sellers should not panic, they can also use other methods to attract consumers.

Recently, the US site also released another announcement, launching sub-category product types, suggesting that sellers provide relevant attributes for sub-category products to enhance consumers' shopping experience in order to increase conversion rates and increase sales.

The original announcement is as follows↓↓

Sellers can combine product categories and attributes with the products that consumers search, browse, and order to make more accurate product recommendations, bringing in traffic and sales for sellers .

Therefore, improving the quality of listings is a good virtuous cycle for both sellers and consumers.

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