Data from Source Advisors finds sustained e-commerce growth post-pandemic, as small and medium-sized enterprises (SMEs) capitalize on direct-to-consumer (DTC) opportunities in online retail.
“The benefits in expanding e-commerce operations [are] clear, and revenue taken from online operations is only likely to increase further. Companies that are expanding their market presence across the USA must be acutely aware of how each sale affects their tax liabilities,” says Chris Vignone, managing director at Source Advisors. “Selling products in multiple states means navigating a complex web of local tax regulations, where each state's rules determine tax obligations. This can lead to significant tax burdens if not managed properly. Companies must invest in robust tax management systems to avoid unnecessary overspending on taxes.”
Key takeaways:
- Online sales surged to $652 billion, according to the latest annual data, an increase of 9% compared to the previous year. This is part of a sustained transition with the industry increasingly capitalizing on e-commerce sales.
- The value of e-shipments have increased by 18% compared to pre-pandemic.
- E-commerce sales now account for 72% of total sales value in the industry.
- The research analyzes up to 5 years of manufacturing industry e-commerce sales in the United States to highlight the sectors that are capitalizing on e-commerce to fuel growth.
- Illinois saw the greatest real-term increase in revenue from all activity, a $6.9 billion surge. This was an increase of 13% compared to the previous year. Next highest was Iowa with a $6.7 billion increase in revenue, 15% higher than the previous year, followed by Texas with a $5.7 billion increase, which represented a 10% year on year increase.
