If you’re that person who listens to one podcast a year, this is definitely the episode you should listen to. Together with me are Bernie Thompson and Paul Rafelson, members of the Online Merchants Guild (OMG), a non-profit organization that is working to change the law governing online sales tax collection.

This podcast episode focuses on the aftermath of the South Dakota vs Wayfair case and how it has invariably created the so-called economic nexus. This essentially means that the state can now require online sellers to collect state sales tax for online purchases, even if the seller doesn’t have a physical presence (e.g. an office or a warehouse) in that state. In South Dakota, the economic nexus threshold has been placed at 200 online purchases or $100k in revenue.

Undue Burden

We believe, that while the ruling can affect all online retailers, it will hit small ecommerce businesses the hardest. This is why we are campaigning to raise funds so we can fight this thing in court. Our plan is to sue all state tax commissioners and seek a declaratory judgment on this issue that will relieve small ecommerce businesses of this undue burden. We plan to steer the conversation towards viable alternatives, specifically compelling marketplaces like Amazon to collect online state sales tax for online purchases on behalf of third-party sellers.  

Help us fight this cause and move the needle towards creating a more sustainable industry for everyone selling online. Please sign up using the link below.

https://onlinemerchantsguild.org/choose-your-level-of-support/

Hopefully, together we can make some real progress on this issue.

Other Useful Resources:

MyEcomcrew

7 Figure Seller Summit

Episode 136: Online Merchants Guild

Thanks for listening to this episode! If you enjoyed listening and think this episode has been useful to you, please take a moment to leave us a review on iTunes.

If you have any questions or comments, feel free to leave them below. Happy selling!


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Michael started his first business when he was 18 and is a serial entrepreneur. He got his start in the online world way back in 2004 as an affiliate marketer. From there he grew as an SEO expert and has transitioned into ecommerce, running several sites that bring in a total of 7-figures of revenue each year.