Fashion Aura is a Pakistan-based athleisure brand. It makes clothing for tall women and has won praise around the world for blending style and comfort. The company was thrilled to grow its business in the United States.
Challenge: Navigating economic nexus across states
But the team didn't expect the hard sales tax problems that came with it—especially around economic nexus. Nexus is the link to a state that means you must collect its sales tax. Each state's rules were different, and the load became too much. It threatened the brand's focus on its mission: empowering tall women through inclusive fashion.
For international sellers, U.S. sales tax compliance is a maze of state-by-state rules. Fashion Aura faced several challenges, including the following:
- Economic nexus regulations: Most states require sellers to register, collect, and remit sales tax if sales pass a threshold. A physical presence, like affiliates or warehouses, can also trigger this.
- Operational strain: Tracking each state's rules by hand drained resources. It also raised the risk of costly mistakes.
- Dynamic thresholds: As sales grew, Fashion Aura had to keep watching for new states to stay ahead of its duties.
"As an international brand entering the U.S. market, understanding sales tax compliance was critical. Each state’s unique rules and thresholds made it feel like we were constantly at risk of overlooking something important.”
Without a solution that could grow with it, Fashion Aura risked penalties, gaps in compliance, and strained operations. All of that put its U.S. growth at risk.
Fashion Aura wanted to grow in the U.S. without fear of penalties or mistakes. So it looked for a reliable tax solution. After comparing several platforms, it chose Kintsugi.
Three things drew the company to Kintsugi: automated nexus tracking, smooth Shopify integration, and hands-on support. With Kintsugi, Fashion Aura turned a possible compliance nightmare into a chance to grow.
Fashion Aura partnered with Kintsugi, a platform built to make multi-state sales tax compliance simple for e-commerce businesses. Here are some of the Kintsugi features they loved:
- Automated nexus tracking and alerts. Kintsugi's free nexus tracking flagged duties in real time, including click-through nexus. That meant timely registrations as sales grew.
- Seamless Shopify integration. The platform synced directly with Fashion Aura's Shopify store. It handled data collection, registration, and reporting with no manual effort.
- Proactive customer support. Kintsugi's support team gave hands-on help. They answered compliance questions and gave advice on each state's rules.
“The responsiveness of their support team stood out—they’re right there whenever we have questions, making sure we meet every requirement accurately. That level of support is rare and invaluable when navigating the different rules across states.”
With Kintsugi's easy tools and expert support, Fashion Aura handled its U.S. tax duties with confidence. And it kept its focus on growing the business.
Fashion Aura saw big benefits after it started using Kintsugi:
- Significant cost savings. Fashion Aura managed its tax bills ahead of time and cut out compliance mistakes. That helped it avoid thousands of dollars in fines and penalties. Kintsugi's low-cost solution kept the brand compliant without pricey outside tax advisors or deep in-house skills. The money saved went back into growth, which helped the brand keep growing in the busy U.S. market.
- Seamless market expansion. With Kintsugi's easy tools, Fashion Aura grew across the U.S. with confidence. It was ready for tax rules that change over time. The platform's automated alerts and clear reports kept it compliant in every new state. That let the brand grow without fear of gaps or missed steps. This simple approach to multi-state tax helped it widen its U.S. reach and reach more customers nationwide.
- Alignment with brand vision. Kintsugi's full set of compliance features fit well with Fashion Aura's commitment to sustainable and ethical growth. Thanks to the platform's automation, the brand kept its focus on openness and integrity. It didn't have to pull people onto slow, manual compliance tasks. This match between smooth operations and brand values built its reputation. It helped the company grow its reach in the global athleisure market while staying true to its mission.
“We’re aiming for steady growth in international markets, and with Kintsugi by our side, we feel confident in focusing on expansion. We anticipate Kintsugi will continue to innovate, supporting our vision and scaling with us as we grow.”
Fashion Aura plans to grow its U.S. presence and move into more international markets. With Kintsugi as a trusted partner, it's ready to handle changing tax laws with confidence.
Kintsugi is based in San Francisco and was founded in 2022. We're here to take the stress out of sales tax compliance. Our platform automates the whole process. It's fast, reliable, and flexible as your business grows. Top companies like Alchemy Marketing and Cabi use our app. Sasha Novakovich of Alchemy Cloud spent just three minutes on the platform and understood their sales tax exposure.
We can do the same for you. Sign up or book a demo now.