Seller Fee Taxability on


Where is the petition? I’ll sign it, but better yet, I want to block sales to those states. Somebody with balls needs to step up and start a class action lawsuit.


This is not about sales to those states. This is about FBA prep services performed in those states and about the location of your business.
To avoid the first one you will have to not use FBA prep services.
To avoid the 2nd, and if your business is located in one of those states, you will have to relocate your business.


As far as I can tell, the FBA fees are not horrendous because sellers can do that work before shipping to warehouses.
As far as I can tell, the packing, shipping, and customer service for FBA are not taxed.
And the FBA sales taxes apply equally to all sellers.
Though I may still suggest that Amazon consider tending to route inventory requiring prep away from the states of Arizona, Connecticut, Illinois, and West Virginia to avoid us taking these costs.

Sales taxes on Selling on Amazon Fees are more disturbing.
This is a problem for those living in Connecticut, District of Columbia, Hawaii, South Dakota, and West Virginia.
And there are many other states considering enacting taxes on Selling on Amazon services.
If you have smaller margins and are in those states, you really need to be looking critically at your business model now, and be considering how to change things.
If you are considering moving, I recommend you contact your state representatives first to explain the situation.

I am in particular awe of the greed of Connecticut, D.C., and South Dakota.
They all have a facilitator tax that is now active on Amazon, and are now looking also to take a massive cut of seller fees too.

I still think we need to do some advocacy to help those in Connecticut, District of Columbia, Hawaii, South Dakota, and West Virginia.
And to prevent this from becoming a problem in other states.
Things could get a lot worse here.


Rest assured. It only affects: “If your business is located outside Connecticut, the District of Columbia, Hawaii, South Dakota or West Virginia, we will not collect sales tax on the Selling on Amazon fee you pay.”


I’m in South Dakota this will cost me a lot of money. I paid 89,000 in referral fees to amazon last year at if I’m tax at 6.5% local tax rate this going to cost me $5,785 at least this coming year. I will be talking to the representatives and discussing solutions. This only makes SD less viable for me as Amazon seller and hurts future sellers from starting.


Blame your state government.

bunga bunga!


I do blame my state government. I will talk to them about this issue. South Dakota claims to friendly to business, but obviously they are not to amazon sellers.

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