Author: Elizabeth Korda

If you have clicked on this article, then it means you are considering fulfillment for your ecommerce business or you just like learning new things! While fulfillment companies can accommodate both domestic and international businesses, there are different qualifying criteria that are required for both. However, there are also some tips that apply to all, regardless of physical location.  

Before you begin your partnership with a US-based fulfillment company, both US and international business owners need to be mindful of three key points

  • Make sure that you choose a company with the best possible location(s) for fulfillment of your merchandise.  
  • Evaluate where your highest sales and demands lie regarding your consumer base and their location. Choose a company that will fulfill in those regions and help you expand your business reach.  
  • Pay sales tax in the state you fulfill your products. Some states like Alaska, Delaware, Montana, New Hampshire, and Oregon do not have sales tax obligations.  

United States Based Sellers 

If you are a United States resident who owns an ecommerce business and wants to fulfill products, according to theFederal Trade Commision (FTC), you need to reevaluate if you have the following things in order: 

  • Terms and Conditions clearly defined on your website or business page 
  • Clearly defined regulations and policies when it comes to customer data, multi-level marketing, payment protection, plain English disclosures, and environmental claims.  
  • Consumer protection needs to be adhered to in reference to various consumer acts and policies in place by the federal and state government.  
  • Business protection avenues need to be taken through clear terms and conditions, being aware of fraudulent transactions, and scammer consumers.  

In addition, US-based business owners should be aware of different tax codes and policies like the following: 

  • Income tax: pay tax as you earn and receive, and then file tax return at the end of the year  
  • Estimated tax: an alternative to paying income tax throughout the year as your company earns money  
  • Employment tax: paying your staff  
  • Excise tax: paid when your business makes purchases on specific goods 

Based on federal and state tax regulations, you will be required to pay taxes on your merchandise on the shipment of it. It is important to make sure that you have all your ducks in a row before fulfilling with a 3PL so that there are no issues or discrepancies along the road. This guide is here to help you check things off your list.  

Non-United States Based Sellers 

All non-US based business owners who operate through direct and indirect e-commerce, wholesale, distribution, and fulfillment centers are known as remote sellers. When you decide to fulfill your goods abroad as a remote seller, there are certain guidelines you need to be aware of, especially for ecommerce fulfillment in the United States.  

Compliance with USA Rules and Regulations 

If you are exporting goods to the United States, you must be mindful of being compliant with the country’s carriers and overall import process fees. For example, US carriers like UPS, USPS, FedEx, and DHL have their individual and specific rules for size, weight, labels, and prohibited items. Importation fees like fuel surcharges, oversize fees, residential fees, or DIM (dimensional) weight policies can impact how soon your merchandise arrives and how quickly it can be fulfilled with a third-party logistics company. Keeping these in check will be a challenging feat with the United States’ everchanging rules and regulations, however anyone who is determined and thorough will surely succeed.  

In addition, it is important to keep in mind that state taxes need to be paid depending on where you fulfill your product. While federal taxes might not apply, each state in the USA has laws and regulations around businesses, and especially ecommerce transactions for domestic and international sellers. Even though you might not have a physical presence in this country, you are still earning, and therefore, are required to adhere to state rules and regulations when it comes to which tax codes apply to you.  

While ShipSage does not fulfill internationally, we have several international clients who fulfill with us in the United States. We offer simple pricing, speedy onboarding, and scalable end-to-end fulfilment solutions. We have 8+ years of experience in the ecommerce fulfillment industry with various features and benefits: 

  • FBA (Fulfilled by Amazon) same-day prep and transfer  
  • FBM (Fulfilled by Merchant) same-day pick, pack, and ship  
  • Strategically located warehouses throughout the United States (CA, IL, MS, and PA)  
  • Seamless transfer with ShipSage’s partner carriers such as UPS, USPS, FedEx, DHL, etc.  
  • Omnichannel integrated inventory management system  
  • No monthly subscription or hidden fees  
  • No minimum orders 

Leave your fulfillment to us!