Drop Shipment Transactions and Sales Tax: Eight Key Points for AR Professionals

Drop shipment transactions are becoming more common, especially with the growth and spread of ecommerce. Drop shipping is a supply chain management delivery method in which the retailer does not stock the merchandise that the customer orders. Rather, the retailer sends the customer order and the shipment details to another entity—such as a manufacturer, another retailer, or a wholesaler—who then ships the ordered item (or items) directly to the customer. These transactions may sound simple,…