How to Win in Retail: 2022 ecommerce tax trends
We know there is a lot of information coming at you about recent, and ongoing tax changes. As international tax specialists, we hear how overwhelmed our customers feel with all the changes: updated codes, new systems, new schemes, and logistical challenges.
Regular readers of this blog will know that we do our best to simplify the complex and demystify the unknown – and we’re always on the lookout for ways in which we can help our retailer community.
Drawing on what we’re hearing from customers, industry, and market data as well as insights from our own business, we’ve identified five core trends that are impacting ecommerce today.
Our Ecommerce Tax Trends 2022 report is the latest and most definitive guide in ecommerce tax trends. Whether your business is in fashion, hardware, gadgets, or technology – whatever your sector, it provides a comprehensive overview of the latest developments in ecommerce. Here’s what we’re seeing this year:
- Ecommerce checklist for avoiding barriers: compiling a simple, easy-to-follow checklist to help you stay up-to-date with trade regulations, understand customs duties, and keep your customers happy will make sure you are on top of your compliance requirements. There may well be bumps along the road but planning ahead will help keep you on course for growth. Or, as we all well know, prevention is better than the cure!
- Keeping cross-border trade switched on: Despite having had a fairly catastrophic impact on most industries, the Covid-19 pandemic has created a significant (and welcomed!) increase in ecommerce sales. However, those retailers who feared navigating through changes and scaled back on cross-border sales are now feeling the impact on profit. Increasing numbers of sellers are now exploring their options to take advantage of more markets. Are you ready to take the plunge?
- The power of technology: The last three years have been a chaotic time for trade. We’re seeing technology and automation playing an increasingly important role in tax compliance. Don’t get left in the past, take a step into the future and embrace automation.
- Overcoming logistics barriers: Digital assistance does go some way toward solving the trade issues companies will likely face in 2022. That said, there are other barriers that businesses must overcome to ensure smooth trading in the future. Retailers continue to report ongoing challenges – and this is likely to continue for some time.
- Enhancing the checkout experience: With consumers now self-proclaimed digital retail experts, a substandard user experience will have people clicking off your site before they even click on their basket. Fuelled by the desire for accurate pricing, reliable delivery dates, and a need for trust in a platform to keep their details safe, online retailers are looking for ways to reduce cart abandonment and increase sales on their website. Small changes will make the biggest of differences.
By far, the best way of avoiding tax barriers and customs challenges as an ecommerce business is through the correct application of automation technology. One of the best examples of this kind of technology is AvaTax, our innovative, cloud-based sales tax calculation program. By using the Avatax platform, companies can vastly streamline their checkout processes, reduce costs, and cut down on endless hours of deciphering tax regulations.
Stay ahead of your competitors. Get in touch today to see how we can help.
Stay up to date
Sign up for our free newsletter and stay up to date with the latest tax news.