What this service is

Nexus & marketplace seller review is a structured assessment that determines where your business has sales tax obligations and how marketplace rules (Amazon, Etsy, Walmart, eBay and similar “marketplace facilitators”) affect what you must collect, remit, register, and file. In the US, sales tax exposure is state-driven and fact-specific. The goal is a defensible, scope-first position—before registrations and filings multiply.

This service is designed to deliver:

• a clear state-by-state “likely nexus / unlikely nexus / needs confirmation” position

• identification of marketplace facilitator impacts (what the marketplace remits vs what you still must do)

• a prioritised compliance plan (register, file, catch-up, or document non-applicability)

• a clean evidence pack for banking, due diligence, and state inquiries

• a “change trigger” list so you know what events require re-review

Who this is for

This service is a fit if you are:

• an e-commerce business selling across multiple states (DTC and/or marketplaces)

• a marketplace seller unsure whether you still need state registrations or returns

• using a 3PL or fulfillment network (inventory in multiple states)

• running drop-shipping arrangements or shipping from suppliers in different states

• scaling fast and worried you crossed thresholds without noticing

• a SaaS or digital goods business unsure where taxability and nexus interact

• a foreign-owned US business needing a controlled compliance posture for onboarding

• responding to a notice, questionnaire, or internal audit request on sales tax scope

What “nexus” means in practice

“Nexus” is the connection that can create a sales tax obligation in a state. The main categories we review include:

• Economic nexus: sales volume and/or transaction count thresholds in a state

• Physical nexus: inventory, offices, employees, contractors, or presence

• Inventory/fulfillment nexus: stock in warehouses or 3PL locations

• Affiliate/agent nexus: referrals, representatives, or in-state relationships

• Marketplace nexus complications: marketplace remits tax, but your broader activity may still trigger duties

Key principle: the best outcome is not “register everywhere.” The best outcome is knowing where you must comply and why, with documentation that stands up later.

What “marketplace seller review” means in practice

Marketplaces often collect and remit sales tax on behalf of sellers in many states. That does not automatically end your obligations. Your responsibilities can vary by state based on:

• whether you also sell direct-to-consumer (Shopify, Stripe invoices, wholesale)

• whether you hold inventory in the state (including marketplace fulfillment)

• whether the state still expects registration or informational filings

• how returns should treat marketplace sales (included, excluded, or reported separately)

• whether your tax settings and product categories align with marketplace reporting

Key principle: marketplace collection reduces complexity only when your systems and filings treat marketplace sales correctly and consistently.

Benefits of a structured nexus & marketplace review

• Reduced surprise exposure: catch obligations before notices arrive

• Controlled registrations: register only where required, with clean effective dates

• Cleaner filings: returns reflect the correct dataset (DTC vs marketplace segregation)

• Lower audit risk: defensible logic and evidence trail for each state position

• Better planning: understand compliance cost as you expand

• Bank and diligence readiness: clear compliance posture for onboarding and investors

What we typically help you prepare

Depending on your channels and footprint, a nexus & marketplace review usually includes:

• state-by-state nexus matrix (economic + physical + inventory triggers)

• marketplace facilitator mapping:

  • which channels are marketplace-facilitated

  • where the marketplace likely collects/remits

  • what you still must register/file depending on your other activity

• operational footprint review:

  • 3PL and warehouse locations

  • fulfillment programs (including marketplace fulfillment)

  • employees/contractors by state

• product/service taxability posture (high-level categorisation)

• priority action plan:

  • register now vs monitor vs document “no current filing”

  • catch-up strategy if prior periods are exposed

• change-trigger list:

  • crossing thresholds

  • adding inventory locations

  • new states for contractors/employees

  • new sales channels or wholesale programs

• record pack:

  • supporting reports used

  • rationale notes for each state

  • compliance calendar outline for states in scope

Service workflow

1) Intake (lean, structured)

We collect the minimum needed:

• entity type and primary operating state(s)

• sales channels (Shopify, Amazon, Etsy, Walmart, eBay, wholesale, Stripe)

• high-level sales by state (platform reports or summaries)

• fulfillment model (own shipping, 3PL, marketplace fulfillment)

• inventory locations (including warehouses and fulfillment programs)

• staff/contractors presence by state (if any)

• current registrations, filing history, and any notices

2) Nexus determination (state-by-state)

We evaluate economic and physical triggers and classify each state as:

• likely nexus (action needed)

• unlikely nexus (monitor)

• needs confirmation (targeted follow-up facts)

We keep the outputs practical and prioritised.

3) Marketplace facilitator analysis

We segment your sales properly:

• marketplace-facilitated vs direct sales

• inventory and fulfillment impacts

• state-specific treatment and reporting posture for returns

• risk flags where marketplace data and accounting data often diverge

4) Action plan + compliance roadmap

You receive:

• a prioritised state list (what to do first and why)

• recommended registration order and effective date posture

• ongoing filing calendar outline for the states in scope

• data and reconciliation requirements to keep returns defensible

5) Documentation and maintenance posture

We provide:

• a defensible review memo-style pack (for your internal records)

• change-trigger schedule (what events require re-review)

• optional quarterly check-ins for fast-growing businesses

Typical premium pricing

Pricing depends on number of states, channels, 3PL footprint, and data cleanliness.

• Nexus & marketplace review (single channel, limited footprint): $1,500–$4,500+

• Multi-channel review (DTC + marketplaces): $4,500–$12,000+

• Complex footprint (3PL network, marketplace fulfillment, wholesale): $12,000–$25,000+

• High complexity (multi-entity groups, multi-country owners, historical exposure): $25,000–$45,000+

Registrations, returns preparation, catch-up filings, and notice handling are separate scopes unless agreed.

Frequently asked questions

1. If I sell only on Amazon, do I have nexus everywhere?
   Not automatically. Marketplace facilitator rules often cover collection/remittance, but nexus and registration obligations can still vary by state and depend on inventory, fulfillment, and whether you sell outside Amazon.

2. What is the biggest risk for marketplace sellers?
   Treating marketplace sales incorrectly on returns (double counting or excluding incorrectly) and ignoring inventory/fulfillment nexus created by warehouse locations.

3. Do I need to register in states where the marketplace remits tax?
   Sometimes yes, sometimes no. It depends on the state and your other activities. We map this state-by-state to avoid assumptions.

4. How do you confirm inventory nexus with 3PL or fulfillment programs?
   We review warehouse location reports and fulfillment program footprint data and align them to state nexus rules and compliance posture.

5. What if we already should have registered earlier?
   We design a controlled catch-up plan, prioritise states, and stabilise data for past periods. Where representation is required, we coordinate partner support.

6. Does nexus mean we must collect tax immediately?
   Not always instantly, but once registered you typically must begin compliant collection and filing on the assigned schedule. We align timing carefully.

7. How often should we redo nexus review?
   Fast-growing businesses should review quarterly or when triggers occur (new inventory state, new channel, threshold changes). We provide a trigger list.

8. What do you need from us to start?
   Sales by state summaries, channel list, fulfillment footprint, inventory locations, and current registrations. We keep intake lean and expand only when required.

Why businesses choose Yudey

• Scope-first discipline: nexus and marketplace impact confirmed before registrations

• Channel-aware logic: DTC vs marketplace segregation done correctly

• 3PL and fulfillment competence: inventory nexus identified and documented

• Defensible state-by-state output: clear rationale and evidence pack

• Priority roadmap: practical plan for what to do first

• Premium compliance posture: controlled data handling and recordkeeping

Request a nexus & marketplace seller review

Send: your sales channels, a sales-by-state summary, where inventory is stored (including marketplace fulfillment/3PL), and any existing registrations. We will deliver a state-by-state nexus position, marketplace impact mapping, and a prioritised compliance roadmap with change triggers.