Drop grows and powers international ecommerce in style with Avalara
Italian technology company improves compliance and saves time with tax automation
Results
Better compliance
Improved efficiency
Reduced costs
Time saved
Summary
Results
- Better compliance
- Improved efficiency
- Reduced costs
- Time saved
Tax challenges
- Company growth
- Compliance risk
- Process inefficiency
- Manual costs
- Tax complexity
Products used
- Avalara AvaTax
- Avalara Returns
- Avalara Business Licenses
- Avalara Certified Service Provider for the Streamlined Sales Tax (SST) Program
Company overview
Customer
Drop
Industry
Technology services
Tax type
GST
Sales and use
VAT
Integrations
Magento
Shopify
Salesforce
Drop builds and manages ecommerce platforms for some of the fashion industry’s biggest brands and a well-known motorcycle manufacturer. Located in Montegranaro, Italy, the company has been helping retailers sell for 20 years. Its customers’ products are shipped to buyers in Australia, Canada, U.S., U.K., and Singapore.
Tax challenges
Drop began operating in the ecommerce space years before many of its competitors. For a long time, the company calculated sales and use tax, VAT, and GST manually. Not only was calculating tax manually a headache, it wasn’t always accurate.
Around 2022, Drop was notified that it had exceeded a tax threshold in Canada and needed to register to collect tax in that province, says Drop project manager Stefano De Angelis.
In that moment, the company began looking for a software partner to help it automate tax compliance.
Why Avalara?
Drop scoured the internet for tax compliance providers and asked partners for recommendations. After evaluating several companies, Drop found Avalara met its criteria and provided features others didn’t.
“We needed to find a tax compliance provider that can integrate with our internal software and major ecommerce platforms in the market. We don’t use only Magento, or Salesforce, or Shopify to sell. We use all of them. Avalara was the right choice,” says Daniel De Luna, project manager at Drop.
Drop calculates tax on nearly 10,000 transactions a year using Avalara AvaTax and files 157 returns using Avalara Returns. One of the top benefits of using Avalara Returns is the company’s ability to make a single payment each filing period to remit tax in the 22 U.S. states where it sells and another for Canada.
Customer
Drop
Industry
Technology services
Tax type
GST
Sales and use
VAT
Integration
Magento
Shopify
Salesforce
Tax challenges
- Company growth
- Compliance risk
- Process inefficiency
- Manual costs
- Tax complexity
Products used
- Avalara AvaTax
- Avalara Returns
- Avalara Business Licenses
- Avalara Certified Service Provider for the Streamlined Sales Tax (SST) Program
“Reducing the time we spend on tax compliance from 10 days to four days a month may not seem big, but you have to consider that our company is different than it was in 2022. We’ve grown.”
—Stefano De Angelis
Project Manager, Drop
“Reducing the time we spend on tax compliance from 10 days to four days a month may not seem big, but you have to consider that our company is different than it was in 2022. We’ve grown.”
—Stefano De Angelis
Project Manager, Drop
Results
Drop found that automating tax compliance not only improves accuracy, it also saves time. The company previously spent up to 10 days a month manually calculating tax and handling returns. Using Avalara allowed the company to whittle time spent on compliance down to three or four days a month – approximately a 65% efficiency gain.
“Reducing the time we spend on tax compliance from 10 days to four days a month may not seem big, but you have to consider that our company is different than it was in 2022. We’ve grown,” says Stefano.
Drop recently joined an information and communications technology group to extend the services it provides and help the company continue to expand rapidly. With Avalara, Drop grows effortlessly and can stay focused on business.