The states are putting pressure on Congress to reform online sales tax. Online sales tax is currently governed by the same rules as catalogs, mail and phone orders. The U.S. Supreme Court ruled that remote retailers are exempt from tax collection in Quill v. North Dakota in 1992. This was almost 25 years ago. A "nexus" is an entity that has a physical presence. It can be anything, including a storefront, office or warehouse.
Because it would increase funding, both local and state governments support a more organized online tax system. The current law only requires retailers to collect taxes from customers who are physically present. If the tax is not collected at purchase time, but the consumer lives in a state with sales tax, then the consumer must report and pay that sales tax. This is almost always the case. Internet Retailer projects that the state and local governments will receive $15 billion more in sales tax if all orders placed online were subject to tax. Local and state taxes are collected and charged at the store and then turned over to government. This issue is more complicated for online retailers that deal with customers all over the country.
When the original ruling was made in 1992, computers were rare in everyday retail use. It would have been difficult to find mail-order or telephone retailers that could handle all 50 state taxes. The technology landscape has changed dramatically with the advent of ecommerce and computers. The technological advances have resulted in an increase of sales but not taxes over time. Many states consider this lost revenue. The argument is that online retailers will be able to easily recalculate their taxes using software and technological advancements, and that today's ruling doesn't accurately reflect the reality.
Online retailing generates at least $4 trillion annually. This figure is much higher than what was made from mail and remote phone orders back in 1992. According to Forbes "U.S. Retail e-commerce sales in the second quarter 2016, adjusted for seasonal variations, reached a staggering $97.3 billion. States are losing millions in sales tax revenue every year due to the fact that many online retailers don't collect sales tax. This could be because they are not required to, or they choose to not.
What's at Stake?
This issue has many moving parts. Online retailers would need to do some legwork if the law were changed. There are thousands of tax codes and rates that apply to different areas in the country. Online sellers may need to be able to charge the appropriate rates and handle them appropriately. A software system that handles this automatically is the best solution. Retailers may be partially or entirely subsidized by this system. The software is not perfect and requires a lot of learning. There is also a learning curve for customers who are used paying or not paying certain taxes with specific stores.
Online retailers will be required to collect sales tax in each region where they ship product. E-retailers can also be audited by local governments. Although the likelihood of independent retailers being audited is slim, it's still possible.
Trending:
https://www.connectpos.com/case-study-french-frites/
https://www.connectpos.com/case-study-grand-judaica/
https://www.connectpos.com/case-study-dampfi/
https://www.connectpos.com/case-study-jat-clothing/
https://www.connectpos.com/business-types/
https://www.connectpos.com/fashion-accessories/
https://www.connectpos.com/footwear/
https://www.connectpos.com/furniture-homeware/
Marketplace Fairness Act
The Marketplace Fairness Act, the current proposed legislation in the U.S. Congress, is this bill. This legislation would allow states to collect sales tax and use tax from remote sellers who don't have a physical presence or "nexus" in their state. However, the state must simplify its tax laws in accordance with the Marketplace Fairness Act. The exemption would apply to small businesses that have less than $1,000,000 in remote sales annually.
Similar bills have been introduced before. They have either expired before being voted on or lost momentum in Congress. Although it is not clear if anything will be resolved with the current legislation, mounting pressure from local governments suggests that a decision is likely for 2017. Keep watching.
Five Simple Steps to Increase Adwords Campaign Success
Google AdWords is a useful tool for your company. Google AdWords results are often at the top or sideline of natural search results. They blend so well with other results that customers don't know they are paid. Customers simply see what they are looking for and click through to the relevant results. Google AdWords is a powerful tool that can help you grow your business. AdWords can help you reach your ideal customers by matching their needs with your products. This will increase brand awareness and sales.
You need to be able to run a successful AdWords Campaign. The basics will be covered: Setting up your AdWords groups and keyword research. Next, you'll need to decide on the target audience. These are all great steps to take. If you want your AdWords campaigns to be more successful for your business, there are many things that you can do. These are the top five tips that will help you get more click-throughs from AdWords campaigns and a better return on your investment.
1. Fine tune your copy
Keyword research is only the beginning. AdWords ads should be written carefully. Consider the results you get when you search Google. There isn't much space to put your copy in. You can still make every word count with careful planning. Two simple questions to ask yourself:
What makes my company stand apart from the rest?
What benefits can customers expect from doing business with you?
You'll be able to create compelling copy that attracts customers by using the answers to these questions. Make sure to include a call-to-action that tells your customers exactly what you want them do next. For example, click here to buy now or get in touch.
2. 2.
AdWords campaigns are only as good as the keywords they choose. The Keyword Planner helps you do this. It is important to select keywords that are similar to what customers type into Google. Negative keywords are also important. Negative keywords are search terms that you do not want your ads to appear for. If you place an ad for runners’ vitamin supplements, it is not a good idea to be found when people search table runners. Negative keywords can help you avoid spending AdWords money on clicks from customers looking for something completely different.
3. 3.
It is not enough to get the right ads in front the right people. It is important to be aware of where potential customers end up when they visit your site. Your ad creates expectations for your potential customers. Your landing page must fulfill the promise you made in your ad. If it doesn't, the customer will leave and you will lose the sale. Google also considers the quality and relevance of landing pages when determining how high your campaign's Quality Score. To keep your visitors engaged, ensure your landing page is relevant to your AdWords campaign.
Example: Our ads target people looking for Drupal CMS systems.
We are targeting the following keywords: Drupal point-of-sale, Drupal POS.
Ad Copy Our ads speak directly about Drupal POS.
Landing Page: This landing page clearly focuses on a Drupal PO.
As you can see, everything is consistent, from the search terms that we target to the ads we place to the landing pages we advertise.
Although this seems obvious, we have seen Adwords accounts where it is not. This can lead to lower quality ads and lower quality scores.
4. Take Advantage of Ad Extensions
Google AdWords extensions let you add more information to your ads. These extensions will make your ads more effective for your business.
Review extensions. Highlight positive reviews in your ads to let people know how they have used your products and services.
Sitelink extensions. Link directly from your ad to other pages on your website. Your ad can direct customers to you. They can also go directly to your homepage or find an item in your store.
* Location extensions. This extension is ideal for brick and mortar stores. Your ad can include navigation help or a map pin so that mobile users can find your store easily.
* Call extensions. Is phone sales an important part of your business? This extension includes a click-to-call button in your ad. Customers can easily get in touch with you.
5. Think Mobile
Internet usage is becoming more mobile. You might consider targeting mobile users more often, depending on the business. Perhaps desktop users, such as those at work, are more likely to see your ads. AdWords allows you to target specific devices so that your ads are seen more often. To get your ads seen by desktop users, you may make a negative mobile bidding to reduce mobile appearances. To increase mobile views, however, you can also make a negative mobile bid if your audience is predominantly mobile.
These features make it easier than ever to create a successful AdWords Campaign that will attract customers and increase click-throughs, and ultimately your sales.
Comments
Post a Comment