Suzanne O’Connor’s Bargains LA

The Premiere Bargain Hunting, Bargain Shopping & Sample Sales Guide for the Los Angeles Area.


Zannee's Blog

Monday, December 07, 2015

Why Free Shipping is So Important

By Suzanne O'Connor

Now that we are paying sales tax on internet purchases, getting free shipping is super important.

If you reside in California, besides the 9.75% sales tax you will pay on the product, if there are additional, separate shipping charges, you will also pay sales tax on those charges as well. Yes, really. Look for the tax added. If it’s more than 10% of the product price, you were charged tax on shipping. It’s perfectly legal and was approved by the state.

I’ve noticed it everywhere from Amazon to Overstock. You will be taxed for shipping on items purchased on the internet if you reside in California. I have no problem with taxation on product purchased. But, that type of excess taxation makes no sense to me whatsoever. That’s like a tax on mail delivery.

What this really is, is a way for the state to get more money out of us. So unless you’re getting FREE shipping, know you’ll be additionally taxed.

I stopped several online purchases when I was suddenly paying ridiculous taxes which neared 15%.  The discounts and convenience suddenly wasn’t worth it when I could get the same deal locally, sometimes without paying sales tax at all.  So now, unless I can get free shipping, the deal is off.

I haven’t run into it as much at smaller indie websites like Etsy or smaller dealers on Ebay.  But keep your eyes open.

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