Ken Knezek, who owns a business that sells footwear, understands the importance of a sales tax. His business is in Texas, which doesn’t have an income tax.
Knezek’s company, Bandals Southwest, sells Bandals Footwear, a woman’s shoe with some 60 patents for its interchangeable bands, has sales reps in about a half dozen states. This created physical nexus for him, and thus an obligation to collect sales taxes. There is no way that Knezek said he can administer sales taxes by himself. In one state where he collects taxes, Oklahoma, the city of Tulsa has three different sales tax rates. He hired Tax Cloud, a company that uses Amazon’s cloud, to manage his taxes.
Taxes +shipping cost give the advantage back to brick and mortar.