Sales tax glossary
What is a marketplace seller?
A marketplace seller is a business that sells products through a third-party platform, such as Amazon, Etsy or eBay, rather than only through its own store. The marketplace usually collects and remits sales tax on those sales under marketplace facilitator laws, but the seller may keep other obligations.
Example
A brand sells on a marketplace and on its own website. The marketplace handles sales tax on marketplace orders, and the brand collects tax itself on website orders in states where it has nexus.
Why it matters for sellers
Multi-channel sellers can reach nexus from combined sales, and inventory stored in a marketplace's warehouses can create physical nexus. Some states require marketplace sellers to register even when a marketplace handles all their sales there.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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