There’s no denying the eCommerce industry is growing. While this is an exciting time, there are major business considerations for eCommerce companies. How can you transform your business to meet the new needs of the market? What are the sales tax implications of growing my eCommerce business?
Recently, TaxJar and partner Miva joined up to host a webinar series on eCommerce growth, business transformation strategies, and sales tax. In case you missed it, check out the recording. Here’s a brief recap.
What is a business transformation strategy?
A business transformation strategy involves automating and optimizing your operations to make them scalable. This can involve implementing new technologies and assets so your business can grow quickly and be set up when opportunities arise.
Think about all the different facets of your business. You have your eCommerce platform, behind the scenes integrations, website, marketing activities and customer support. A business transformation strategy allows you to invest in these different activities as part of one overall strategy, rather than separate strategies. What’s the benefit? You’ll be able to react quickly to industry updates and be prepared when presented with an opportunity that increases revenue.
It can be tricky to determine if your business is ready for a business transformation strategy. Asking yourself these questions can help: Have you hit growth limits? Is your website crashing when you have a jump in orders? Is your fulfillment process overwhelmed with orders and unable to meet delivery deadlines? This could mean it’s time to start preparing for the future and getting your business ready for long-term growth. Avoid looking for band aids that will only provide short term solutions and think strategically about the long term outcome.
Learn more about business transformation strategies from Miva here.
How sales tax management fits into a business transformation strategy
Sales tax management is one of the activities that can be streamlined as part of a business transformation strategy to open your company up for long-term success. Instead of manually calculating sales tax rates and submitting returns, you could be focusing on those opportunities we talked about above. A business transformation strategy enables you to better manage processes that are otherwise slowing your company’s growth down.
For a business, the growth of eCommerce can have huge implications for sales tax compliance. A high-growth company has specific needs and complex sales tax needs. When a company is making more sales in more states, they’ll reach nexus in those new states faster, and likely more often. To track this you not only need to know the thresholds in each state, but be prepared to register when you hit that threshold. That’s why many growing companies decide to automate this painstaking task of charging sales tax. Read more 2021 sales tax compliance trends here.
However, it’s all about finding the right partner to help take sales tax compliance off your plate. For those that choose to automate, a fast sales-tax API is key. Afterall, sales tax software plugs directly into the checkout experience. High-traffic sites need to be extra-conscious of their speed. You don’t want to lose sales because your sales tax API is slowing your customers down.
Here are a few considerations for companies looking to transform their business for the new eCommerce economy by automating sales tax compliance:
- Speed matters. Sales tax APIs plug directly into your checkout experience
- Reliability decreases risk. A high volume of traffic increases risk.
- Accuracy is complicated. Track your nexus, sales channels and rates.
- Support can cost you. Slow or wrong answers cost time and money.
Where can I find out more?
Whether you’re a new growing online company or a longtime industry veteran taking advantage of the eCommerce growth, there are many ways to save time and money by streamlining strategies and tasks. Check out our OnDemand How Ecommerce Leaders Can Drive Transformation Without It Costing Your Business in 2021 webinar series for more information on how you can transform your business and drive revenue in 2021.