News that Amazon will begin collecting sales tax in Minnesota starting next week has led to speculation that the company may open a warehouse, data center or some other operation in the state or buy an existing firm, according to the Minneapolis Star Tribune. Online-only retailers don’t need to charge sales tax in a state unless they have physical presence or affiliated business there.
Retailers considering whether to enter a new market via cross border with third-party logistics partners or with an in-country presence should consider factors like their cost of capital and inventory carrying policy, as well as what existing assets can be leveraged in that country, two experts told Multichannel Merchant.
In the MCM Outlook 2014 survey, the largest number of respondents (26%) said UPS was their primary global carrier, followed by FedEx and the United States Post Office (18%) and DHL (12%). This outcome may be the result of a largely U.S.-based audience, as DHL is generally considered the world’s shipping/logistics leader, followed by FedEx and UPS.