Charging tax and freight without estimating to customer up front

Hello! B2B in house marketing here, I run our ecommerce storefront.

We just got acquired by another company, and I discovered that while their business is only about 2x as much revenue as us, their web store does about 15x as much revenue. It's a huge portion of their revenue. I was in awe and have been trying to learn and adapt their best practices as much as possible.

However I'm sort of horrified with their best practices. The one I'm juggling with today is charging freight and tax on the web. This is to say, they don't. Their ERP (which we just integrated into) calculates tax and freight at the time of generating an invoice, not an order. So customers who check out through their website are given a small disclaimer "freight and tax may be added" and that's it. We sell bulky fragile things (glassware) so freight can be enormous, and their methodology is to charge their customers the FedEx list price of the cost of freight. It's often times as much as the goods themselves.

I got told when we move onto their web system, we'll need to adopt this as their ERP has no way to handle giving freight to the website, and they arent willing to build in a "freight override" function to have a pre-quoted freight amount invoice instead of the true list.

Tax is a whole other issue, we currently integrate with avalara on our website, but they're claiming the # of calls it makes to estimate every time someone goes to their cart is too much, so they want us to adopt their charge-tax-with-no-estimste model

Besides me thinking this is a horrific customer experience, I'm wondering if theres anything illegal about this? I cant use just customer experience to justify changing things, since they are more successful than we are, but I want to make them aware if we're not compliant with the law.

submitted by /u/ohso_happy_too
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *