Sales Tax Automation: How Kintsugi Saves Time and Money

OTC Shop is a fast-growing e-commerce clothing brand based in the U.K., with a strong presence on Shopify and Amazon. As they expanded into the U.S., the complexities of varying sales tax rates posed a significant challenge. Managing state, county, and city tax regulations was overwhelming, and they struggled to keep up.

Then they found Kintsugi, a tax compliance software that transformed their operations. It simplified their tax management operations, freeing up more time for them to focus on growth.

Scaling While Managing Sales Tax Compliance can be Challenging

As OTC Shop gained traction in the U.S., tax compliance became a daunting obstacle. Selling across states meant facing a constantly shifting landscape of tax regulations. With limited internal resources, their team was initially manually managing taxes. This time-consuming process took focus away from growing their business and led them to try other solutions like Zamp and Numeral, which ultimately fell short of expectations.

According to OTC Shop, "Handling taxes was eating into the time we should’ve been using to expand. It wasn’t just stressful—it was holding us back."

They needed a solution that would not only provide sales tax automation but also integrate seamlessly with their existing e-commerce platforms.

How Automation Drove Seamless Growth

Kintsugi’s platform integrated directly into their Shopify and Amazon accounts, automatically calculating taxes at the point of sale, and managing filings across all relevant U.S. jurisdictions. For OTC Shop, this was a game-changer: "The moment we started using Kintsugi, we saw how easy it was to handle taxes without lifting a finger. It’s completely automated."

As they expanded into more U.S. states, Kintsugi kept up without any additional burden to their internal team. Whether filing in a handful of states or nationwide, Kintsugi’s flexible platform ensured compliance at every level, allowing them to continue scaling their operations.

The Power of Sales Tax Automation

Streamlined Operations

With Kintsugi handling the tax compliance process, OTC Shop was able to reinvest their time and focus on strategic growth initiatives. No longer bogged down by the complexities of state, county, and city tax regulations, they were able to focus on product development and expanding their market presence. The time saved on tax administration was substantial, with over a hundred hours being freed up annually.

Rapid Expansion

Kintsugi played an instrumental role in OTC Shop's rapid expansion into new US states. By automating tax compliance, they could confidently launch new products without the added stress of manual tax management. This enabled faster entry into new markets while maintaining compliance with local tax regulations.

Cost Efficiency and ROI

OTC Shop estimates that the company cut down on administrative costs by at least 40% thanks to Kintsugi. This significant reduction in operational overhead contributed to a faster return on investment. The solution has not only saved time but also reduced the risks of compliance errors, which could lead to costly penalties.

Seamless Integration

One of the standout features of Kintsugi for OTC Shop was its ability to seamlessly integrate into both Shopify and Amazon. This synchronization allowed for real-time tax updates, filings, and compliance, without any need for manual intervention. As a result, tax data was always accurate, and returns were filed on time.

Looking Ahead with a Trusted Partner

OTC Shop has ambitious plans for further expansion into the U.S. and global market. With Kintsugi managing their sales tax compliance, they can confidently push forward, knowing they have a reliable partner handling the complexities of tax regulations.

Summing it up perfectly, the OTC Shop Owner said, "Kintsugi has been a game-changer. It’s allowed us to focus on growing our brand without worrying about the tax headaches. I’d recommend it to any e-commerce business dealing with multi-state or international sales."

With Kintsugi’s automation, support, and seamless integrations, they are set to continue scaling their business while staying compliant, stress-free, and focused on the future.

About Kintsugi

Based in San Francisco and founded in 2022, Kintsugi is dedicated to taking the stress out of sales tax compliance. Our platform automates the entire process, delivering high performance, reliability, and flexibility as your business scales.

Kintsugi is secure, encrypted, GDPR-compliant, and SOC 2 Type II certified, adhering to the highest standards for security, availability, processing integrity, confidentiality, and privacy.

Learn more about Kintsugi’s platform and integrations here.