Dropshipping
Updated
Definition
A retail fulfillment method where the retailer doesn't hold inventory — instead, when a customer orders, the retailer forwards the order to a supplier who ships directly to the customer. Creates complex sales tax implications around resale certificates.
Related terms
- Resale certificate— A document a buyer issues to a seller to purchase goods tax-free for the purpose of resell…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.