What is a Marketplace Facilitator?
A marketplace facilitator is a business or platform that helps third-party sellers reach customers (e.g., Amazon, eBay, Etsy).
These platforms often handle transactions, logistics, and sometimes… taxes
Nexus and Marketplace Sales
Even if you're selling through a third-party platform, the revenue generated counts toward economic nexus thresholds.
👉Don't ignore these figures when assessing your tax obligations.
Who collects the sales tax?
✅If the marketplace collects and remits, you're likely covered.
If not, it's your responsibility to:
- Register with the state
- Collect tax from buyers
- File appropriate returns
Who is a Wholesaler?
- Buy in bulk from manufacturers or distributors, sell in smaller quantities to businesses/retailers
- Operate warehouses, handle logistics & focus on volume
- Require resale certificates to avoid sales tax on B2B transactions
Who is a Retailer?
- Sell directly to consumers
- Must collect sales tax unless a valid resale certificate is presented
- Taxable at the point of final consumption
What is a Resale Certificate?
A resale certificate lets a business buy goods without paying sales tax, if they plan to resell them.
- Issued by state tax authority
- Prevents double taxation (sales tax is collected only at the point of final consumer)
- Must be retained as proof to comply with tax regulations & avoid audit penalties
Why this matters
- Misunderstanding roles (seller vs. facilitator)
- Not tracking nexus thresholds
- Not collecting/keeping resale certificates
…can lead to audit risk and penalties.
Sales tax rules are only getting more complex.
- Nexus evaluations
- Marketplace compliance
- Reseller documentation
If you're a wholesaler, retailer, or selling through a marketplace facilitator, reach out to FinStackk to simplify your tax operations!
Related reading
For how registration, nexus and remittance work state by state, see our sales and use tax compliance guide.