Blog: Articles

Sales Tax Goes Back to Court

I designed and built my first website in 1996 (yow!), a corporate information brochure hand-coded in HTML. The second or third version of it is still available on, proudly proclaiming that it is best viewed with Netscape 2.0. The site looks tiny and strange now, but at the time everything we were doing felt like the Wild West, with unlimited possibility. Almost 25 years later, the web has calcified a bit; design is minimal to best comport with device variety, and content is built to please search engines and social media rather than the whims and fancies of crazy people experimenting with new toys.

That year, I recall our IT administrator walking into my office—back then, the IT guy was also the nascent web guy (they were mostly guys), who later became an army of sysadmin and devops folks—talking about a new website where you could buy books online. It seemed insane to us; web sites were a place where you could put a company brochure online, maybe post a job opening or a press release, but you’d never compete with book stores or record stores.

That website was, and it’s as ubiquitous as sunlight or acne now, depending on your views of capitalism and/or its discontents. Though Jeff Bezos might pointedly disagree, one of the primary reasons for Amazon’s early success was its ability to underprice brick and mortar competitors by avoiding charging sales tax to most of its customers. This was not an advantage unique to Amazon; a key court decision in 1992 relieved businesses without a “physical presence” in a state from the burden of collecting sales tax on purchases shipped there. But Amazon exploited it more successfully than anyone else and, through a combination of aggressive pricing, logistical foresight and patient investors, was able to build an e-commerce platform that has nearly taken over the western world.

State governments have been at war with Amazon and other online retailers for nearly two decades now. All those tax-free transactions not only represent a uneven playing field for local companies, who by law must charge sales tax, but also many billions of dollars in revenue that the states claim are owed to them. The laws vary, but here in Texas the state comptroller even provides a consumer “use tax” form for everyday citizens to fill out so that you can pay the legally mandated tax that an online retailer did not charge you for that Frozen Blu-Ray you ordered last year. That’s correct—in Texas, as a consumer you are legally obligated to report the amount of all out-of-state purchases that did not include state sales tax (businesses are also required to do this, but they are policed very closely). Better get out your checkbook and send the state of Texas $1.68 for that DVD.

Of course, consumers mostly ignore this, and a few years back the state finally beat Amazon into submission and it now collects sales tax on Texas transactions; they couldn’t have avoided it for long, as they have distribution centers all over the state now (thus giving them “nexus”, or physical presence, in the state). Indeed, Amazon itself now collects sales tax in all states that charge it, though its third-party sellers may do whatever they want. However, the general problem remains for most other online retailers, as does the lost revenue for the states.

And the states don’t make it easy for retailers; many states have complex sales tax jurisdictions with rates that can vary along seemingly arbitrary boundaries. For a business like ours that builds and maintains an e-commerce platform, the holy grail is called “rooftop” accuracy; that is, the tax rate is accurate down to the level of the actual building that an order is being shipped to. You can’t rely on ZIP codes, cities or counties in some cases, because a city tax add-on (e.g. one-tenth of a percent added for municipal transit) may overlap with a county rate in certain places and not others. It’s a big, hot mess, and there are numerous companies that do nothing other than provide a paid service to help retailers collect tax accurately.

For years, most of us in the e-commerce business thought that some kind of consensus would be reached where states could agree to a universal “internet” e-commerce tax, or that the U.S. congress would step in and impose a standard tax with the power granted under the commerce clause. But the federal effort has never really gotten off the ground, and numerous attempts by state governors to rally together and negotiate a standard method or rate have failed, which is not entirely surprising given that some states charge no sales tax at all. This is federalism at its best or worst, again depending on which corner you’re yelling from.

That all could change this year, as the Supreme Court has agreed to revisit the Quill v. North Dakota decision that put all this into motion in the first place. Three large online retailers –, and (Amazon is notably absent) are opposing a 2016 South Dakota law requiring any business with more than $100,000 in sales in the state to pay a 4.5% tax on purchases.

Whether this will resolve the conflict once and for all is unknown; simply overturning Quill and upholding South Dakota’s new law might not resolve anything conclusively. And upholding Quill might not spur Congress to do anything at all; this is clearly not a hot-button issue for our legislators. It’s one of those conflicts where a good resolution would likely involve a little bit of bloodletting on every side, and it doesn’t seem like anyone has the stomach for that right now, which is probably why it landed (yet again) on the steps of a courthouse.

–Brent Buford

Categories: Articles

Company Stores 101: Customizing Email Templates

Many storeBlox CS store owners don’t realize that each email that your store sends out – registrations, order notifications, requests and so on – is completely customizable, right in the dashboard. Don’t like the ones that come with your store? Toss them out and make your own!

Not only is each email completely customizable with our WYSIWYG editor (so you can format, add colors, tables, graphics, etc.), but we’ve also provided you with some dynamic fields that fill in automatically with information from the store, order or account. These fields are available for both the subject line of the email and the body of the email itself.

This provides a wide range of possibilities for customized messages, offers, loyalty marketing and more. Some examples:

Registration offers: Want more users to register for your site (so you can add them to your email marketing, for instance)? Create an incentive for registration, like a discount code. Add this code to the **User Registration** email and you’ve got a custom offer (using their name, of course!) for every user

storeBlox CS company store email template - discount code

Return Actions: One of the biggest challenges with online stores is encouraging repeat visits. The first order is great, but you really want to gain long-term, repeat customers whenever possible. By adding personalized messages to the Customer Confirmation email to encourage specific actions, you can create a “curiosity gap” that brings customers back after their order:

storeBlox CS company store email template - special offer

Encourage Feedback: One of the most difficult things to obtain from your company store customers is constructive feedback about your products and services. Most of us hate filling out surveys (unless we’re really mad about something), but the best time to get feedback from someone is when they’re directly interacting with you or immediately afterward. By adding a survey link to your Shipment Confirmation email, you can catch customers when they are most likely to be paying attention – when they get that shipment notification

storeBlox CS company store email template - survey request

These are just a few uses of email customization. It’s a nifty feature that everyone should use — after all, these are emails that customers are more likely to pay attention to. Take advantage of it!

Categories: Articles, How-to

What were the big movers and shakers for 2016?

We like to close out each year with some analysis of the transactions that run through the storeBlox CS company store system. This year we thought it might be fun to see exactly how 2016 stacked up to the year before. Maybe we’d unearth some upcoming trends! Or predict the downfall of some fading product category!

Nope. 2016 was, well, pretty similar to 2015. Across millions of dollars in company store transactions, the most popular product categories and their respective shares largely stayed the same, almost like a mirror image:


Apparel and Drinkware continue their reign as the champions of company store sales, with HatsOffice & Desktop and Writing Instruments rounding out the top 5. In fact, the only real significant movement we saw was a 3% drop in Holiday products.

Nothing earth shattering here. Average order size for 2016 was $304, which has increased slightly over the last few years. What can we glean from this? A few thoughts:

  • Company stores are an established, mature business with a consistently varied product mix
  • A successful product mix is pretty clear – the top 5 rarely change
  • If you’re not sure what to pitch to your customers, you pretty much can’t miss with wearables and drinkware

Need some nifty statistics for your next presentation? Wanna talk company store shop? Give us a shout today!

Categories: Articles