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Most important Niche selection guidelines discussed in the episode.
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About sales tax for ecommerce drop shippers:
Hey folks, a big update about sales tax here. We just got charged sales tax on a couple of orders by our supplier because they have a nexus in the state they were shipping to. The reason why vendors have to charge us sales tax on orders is that we haven't submitted them a seller's permit in that state, but the key is we don't have to. They can simply charge us sales tax on the wholesale cost of the item and report it to the state themselves, and we have the choice whether to charge it on the retail price of the item or eat the cost. They key here is competitor research. You need to go to your competitor's site, shop as if you are your customer, and see if they charge sales tax in that state. If they don't, then you'll probably need to eat the sales tax for now to compete, but if they do, then you certainly can charge it if you want to try. However, you might gain a competitive edge by still eating the cost. Determine your gross/net profits on the supplier's items in question first, then you can determine whether you can afford to eat the cost of sales tax. This is going to be an ongoing issue in the future, so better to prepare a strategy for dealing with it now than wait to deal with it when it happens.
"Two steps forward one step back"
- Customer service