AboutJim Novo Expertise Questions about using customer data to inmprove online profitability, particularly in retailing. Topics include profiling customers using weblogs, figuring out which ads generate the highest value customers, how to reduce the numnber of 1x buyers, how to generate higher sales from current customers, customer analysis, ROI calculation, reducing discounts while increasing resaponse rates. Do you collect customer data (purchases, page views, surveys) and not really use it for anything? Want to find out how? Just ask.
Experience
Past/Present clients Cellular One, MBNA, SteelTorch Software, Retek Direct, CBS Sportsline, Kobie Marketing, Aerial, Tupperware, Barnes and Noble, Comcast Corporation, Home Shopping Network
Question I have a question. If I live in Canada and created a ecommerce store that sells only the US market with US drop shippers, how does the sales tax work?
Do the drop shipper charge a sales tax based on where I live, where my customer lives, or no tax at all? If they do charge a sales tax, what do I charge my customer? Do I treat it as a sale from Canada to US (no tax) or from drop shipper to my customer?
Answer I can't answer this question, other than to say "it depends" and you should check with the Drop Shipper.
In some drop ship scenarios, the shipper is actually running the commerce system for you, so they will collect the tax. If you are running the commerce system, you will collect the tax. Generally, tax is only collected from buyers in the states where the drop shipper has a facility, but this is a complex and currently changing area of law.
