It is generally predicted that eCommerce in the United States is expected to grow about 15.1% this year over the same November and December months of 2012. The eCommerce fulfillment retailers are expecting $61.8 billion worth of spending during this holiday season. Forrester Research estimates that the United States online retail industry will to be worth $262.3 billion in 2013. $41.68 billion will be spent through mobile devices with tablets taking the majority over smart phones.
While these numbers are large, the growth trend forecast for eCommerce fulfillment is smaller than previous years. Online retailers are thankful that the Marketplace Fairness Act (MFA) has fizzled in the House of Representatives after passing the Senate in May 2013. The MFA, if passed, would require online retailers with more than $1 million in revenue to pay state sales taxes even if the retailer had no physical presence in the state and could dramatically adversely affect eCommerce fulfillment.
“The Marketplace Fairness Act grants states the authority to compel online and catalog retailers, no matter where they are located, to collect sales tax at the time of a transaction – exactly like local retailers are already required to do. However, there is a caveat: States are only granted this authority after they have simplified their sales tax laws.” 
Many larger companies support the legislation arguing that the bill would level the playing field. With brick-and-mortar stores in most states already, larger stores would require less money to update their systems to collect taxes for each individual state. The urgency is felt among smaller and mid-size companies who will lose a competitive price advantage and incur higher compliance costs. Fortunately for smaller companies the MFA bill has stalled out in the House of Representatives. With an estimated $24 billion at stake in eCommerce fulfillment this year alone, it should be expected that state governments will continue to push for the passage of legislation to collect sales tax on items purchased online.
FW Warehousing is headquartered in St. Louis, Missouri with Midwest warehouse distribution centers in Kansas City, Indianapolis and St. Louis totaling more than four million square feet. Founded in 1949 with a focus on food-grade storage, FW later broadened its services to include contract warehousing, dry storage, hazardous material and chemical storage, temperature-controlled storage, product distribution and B2B and B2C fulfillment.
FW Warehousing has more than 50 years of experience in third-party 3PL logistics and has been ranked in the top 100 Third Party Logistic Companies in the country by Inbound Logistics magazine.
For more information about FW Warehousing and its complete warehousing, fulfillment and logistics capabilities, visit the FW Warehousing website.