Accounting for E-commerce & Online Retail
E-commerce businesses create sales tax obligations in states they have never visited. Economic nexus is triggered by sales volume alone, and marketplace facilitator rules shift some but not all of the burden to the platform. Blue Sage handles the nexus review, the registrations, and the inventory accounting behind the returns.
What we handle
- Economic nexus review across every state you sell into
- Sales tax registration and filing where required
- Marketplace facilitator analysis by state
- Inventory and cost of goods sold accounting
- Platform and payment processor reconciliation
- Third-party fulfilment inventory nexus review
Who this is for
Online retailers, direct-to-consumer brands, marketplace sellers, and subscription commerce businesses.
The exposure that builds quietly is inventory stored in a third-party fulfilment network. Inventory sitting in a warehouse in another state can create physical nexus there regardless of sales volume, and sellers frequently do not know which states their stock has been placed in.
Deadlines and rules worth knowing
| Item | What applies |
|---|---|
| Economic nexus | Triggered by sales volume alone, commonly starting around $100,000 in sales into a state |
| Fulfilment inventory | Stock held in a third-party warehouse can create physical nexus in that state regardless of sales |
| Marketplace facilitators | Platforms often collect on your behalf, but a registration or reporting obligation can remain |
| Gross vs net | Processor deposits are net of fees and refunds. Recording deposits as revenue understates both revenue and expenses. |
| Inventory | Cost of goods sold must be tracked properly. Landed cost includes freight and duty. |
| Returns and chargebacks | Need to be recorded against revenue, not buried in fees |
How we work
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Review what exists
We read last year’s return and whatever records you have. Most of what needs fixing is visible quickly.
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Fixed quote in writing
Scope and price before anything starts, counting entities, states, and any cleanup needed.
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File and maintain
Returns prepared and filed, notices answered, and a projection before year end.
Questions
Do I have to collect sales tax in every state I sell to?
Only in states where you have nexus. Economic nexus is triggered by exceeding a state's sales revenue or transaction threshold, commonly starting around $100,000 in sales. Physical nexus can arise separately from inventory, employees, or property u2014 including stock held in a third-party fulfilment warehouse.
My platform collects sales tax for me. Am I finished?
Not necessarily. Marketplace facilitator laws shift collection to the platform for sales made through it, but if you also sell through your own site, or if a state still requires a return reporting facilitated sales, obligations remain. It has to be reviewed state by state rather than assumed.
Last reviewed 11 September 2026 by Fahadun Nabi, Founder, Blue Sage Tax and Accounting Inc.. General information, not advice for your specific situation.
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Talk it through before the deadline, not after.
A free consultation call, no obligation, and a fixed quote if you want to go further.