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The United States Levies An E-commerce Tax,What Else Can Sellers Do But Pay Taxes
Kinghood International Logistics Inc | Updated: Jan 18, 2019

The New Year is coming, and with it comes the news of a comprehensive "e-commerce tax" in the United States.With the promotion of comprehensive taxation of e-commerce in the United States, how should cross-border e-commerce enterprises survive in the "gap" in the future, and how to gain more benefits in the increasingly meager profits?Today xiaobian to give you sellers do a share.

States have been rolling out online sales tax laws since June, when the us Supreme Court passed a bill giving states the right to impose excise taxes on e-commerce sales across state lines.At this point, the era of comprehensive taxation of American e-commerce comes. How will the gear of Chinese sellers' destiny turn?

First, let's take a look at the situation of major e-commerce platforms and sellers after the levy of e-commerce tax.In the past, there was no consumption tax on online shopping in the United States, which created a tax haven for e-commerce.With the continuous development of cross-border e-commerce and the continuous increase of online sales, it has virtually caused tax losses to state governments.The introduction of the new law breaks the principle of no tax on e-commerce, and also means the official end of the tax dividend period for American e-commerce. The new tax law will inevitably affect e-commerce platforms and sellers.

In the future, consumers will have to pay consumption tax when shopping online, which means the cost of selling various goods on e-commerce platforms will increase.For e-commerce sellers, product richness and price are the most powerful weapons to expand the market, and now the damage to one of the weapons has a great impact on the sellers.No longer spell the price, in the face of unpredictable cross-border e-commerce market, how Chinese sellers from place?

1. Pay close attention to the dynamics of e-commerce platforms

Sellers need to keep an eye on the latest business trends of various e-commerce platforms and the new functions of their products.The rule change of each major platform is based on the premise of improving the shopping experience of consumers, so anything sellers do to improve the shopping experience of consumers will help the business.Timely tracking sales problems, comments, out-of-stock warnings and other matters will help improve the shopping experience of consumers, improve customer viscosity, and thus improve product sales.

Second, return to the product, pay attention to quality

Before the e-commerce tax was imposed, sellers focused on price wars and relied on price advantages to seize the market.Next, Chinese sellers must return to the products themselves, deeply understand the needs of customers, quickly develop and design products with high cost performance, and quickly bring the products to the market through online advertising. Only in this way, can they win the favor of consumers and finally occupy a place in the market.At the same time, the sellers also pay attention to the quality of products, stable product quality can help the goods in the various categories of competition stand out.This is also helpful to improve the shopping experience of consumers. Only when the quality of products is excellent can more consumers be attracted to buy them.Getting more positive buyer feedback will be a positive cycle.

Reasonable cost reduction

Undoubtedly, e-commerce platform can bring more traffic to commodities, but e-commerce platform also brings limitations to the development of sellers.In the case of amazon, not to mention the fact that merchants have to pay a certain amount of commission for the platform every time they sell a product, the high storage fee and commodity handling fee for warehouses are a big headache for sellers.Not to mention e-commerce taxes.The only way to cope is to reduce costs on all sides, and the best way is to resort to overseas warehouses.To save on storage fees, sellers can store their goods in kinghood overseas warehouse, which is located in Los Angeles, the logistics hub of the United States.With nationwide logistics resources, kinghood overseas warehouse can provide customers with lower storage fees and order processing fees than e-commerce warehouse.When customers need replenishment to the e-commerce warehouse, they can send the goods directly from the overseas warehouse, saving a lot of logistics costs.

For sellers with multiple platforms and independent websites, kinghood overseas warehouse can also provide a consignment delivery service.Local delivery gives customers the same time advantage as local sellers.The advanced WMS system makes the whole process of goods traceable and enables customers to know the whole situation of goods in the United States without leaving the house.

"E-commerce tax" don't be afraid!Choosing a strategy is key.

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