Kat Simpson knew something big was happening when a dear friend kept asking this mother of five to “borrow” her children to go shopping.
They only allow us one item per child, her friend explained.
What were they buying? As it turns out, that product was Beanie Babies™ and that collectible craze represented Kat Simpson’s entry into the world of retail arbitrage.
Kat recalls those days with a laugh. I felt like the lady in the trench coat in the parking lot selling contraband! It was such a mania, we’d even buy Beanie Babies™ out of the back door of the flower shop!
Kat began reselling Beanie Babies on eBay and quickly realized that the freedom of online selling gave her flexibility to build the life her family wanted. It allowed her to stay at home with her children and homeschool, and kept the family in a steady source of side income even when they frequently moved due to her husband’s military service.
In 2007, when Kat’s husband became disabled, her “eBay hobby” had to go from – in Kat’s words mom’s pin money to supporting a whole family.
She was one of the earliest sellers to sell on Amazon FBA. But, of course, that meant she suddenly had to deal with sales tax in multiple states instead of just her home state of Arkansas.
Before TaxJar, I was spending six to ten hours per month on sales tax, Kat said. I also talked to other sellers on my radio show. One well-known eBay seller admitted that it took her 12 hours just to figure out sales tax in one state! Using TaxJar is a no-brainer for eCommerce sellers.
Kat uses TaxJar to keep track of the sales tax she collects through selling on eBay and Amazon FBA. She currently files monthly, quarterly or annually in fifteen states and spends minutes per month instead of hours on the headache of sales tax compliance.