Importance of Sales Tax Free

JOIN KNET

Back

Importance of Sales Tax Free

Nov 17, 2025

Sales tax can turn a “good buy” into a break-even flip before you even list the pair.

Going sales-tax-free lowers your all-in cost and creates more room for profit, especially on bricks and fast movers.

For growing resellers, this advantage compounds fast and becomes a real edge over competitors.

Sales tax can turn a “good buy” into a break-even flip before you even list the pair.

Going sales-tax-free lowers your all-in cost and creates more room for profit, especially on bricks and fast movers.

For growing resellers, this advantage compounds fast and becomes a real edge over competitors.

Sales tax can turn a “good buy” into a break-even flip before you even list the pair.

Going sales-tax-free lowers your all-in cost and creates more room for profit, especially on bricks and fast movers.

For growing resellers, this advantage compounds fast and becomes a real edge over competitors.

On This Page

The Importance of Avoiding Sales Tax in Sneaker Reselling

Why Sales Tax Matters

Legal Ways Resellers Lower or Eliminate Sales Tax on Inventory

Regular Reshipper vs. KNET (what changes for you)

Supplies, labor, and “leaks” still apply

A Simple Playbook to Keep More Margin

Bottom Line

The Importance of Avoiding Sales Tax in Sneaker Reselling

Sales tax is a silent margin-killer. If you ignore it, you’ll pay more for inventory, tie up cash, and lose deals you should’ve won.

Below is a plain guide to legally reduce or avoid sales tax on your sneaker buys—and keep that money working for you.

The Importance of Avoiding Sales Tax in Sneaker Reselling

Sales tax is a silent margin-killer. If you ignore it, you’ll pay more for inventory, tie up cash, and lose deals you should’ve won.

Below is a plain guide to legally reduce or avoid sales tax on your sneaker buys—and keep that money working for you.

The Importance of Avoiding Sales Tax in Sneaker Reselling

Sales tax is a silent margin-killer. If you ignore it, you’ll pay more for inventory, tie up cash, and lose deals you should’ve won.

Below is a plain guide to legally reduce or avoid sales tax on your sneaker buys—and keep that money working for you.

Why Sales Tax Matters

In many U.S. locations, the combined state + local sales tax a buyer pays is roughly 7–8% on average, and some cities top 10%. California and New York commonly sit in the ~8–9% combined range, with certain cities even higher.
Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska (AK allows local sales taxes).

The quick math (why this hits so hard)

Assume your AOV is $100:

10% tax = $10
If you can route purchases tax-free but pay a $5 reship fee, you’ve still netted +$5 per pair.
On bricks and tight GR plays, that $5 is the margin.

More margin = more pairs you can safely buy.

Why Sales Tax Matters

In many U.S. locations, the combined state + local sales tax a buyer pays is roughly 7–8% on average, and some cities top 10%. California and New York commonly sit in the ~8–9% combined range, with certain cities even higher.
Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska (AK allows local sales taxes).

The quick math (why this hits so hard)

Assume your AOV is $100:

10% tax = $10
If you can route purchases tax-free but pay a $5 reship fee, you’ve still netted +$5 per pair.
On bricks and tight GR plays, that $5 is the margin.

More margin = more pairs you can safely buy.

Why Sales Tax Matters

In many U.S. locations, the combined state + local sales tax a buyer pays is roughly 7–8% on average, and some cities top 10%. California and New York commonly sit in the ~8–9% combined range, with certain cities even higher.
Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska (AK allows local sales taxes).

The quick math (why this hits so hard)

Assume your AOV is $100:

10% tax = $10
If you can route purchases tax-free but pay a $5 reship fee, you’ve still netted +$5 per pair.
On bricks and tight GR plays, that $5 is the margin.

More margin = more pairs you can safely buy.

Legal Ways Resellers Lower or Eliminate Sales Tax on Inventory

“After all fees, I never want to get less than $X

1) Buy for resale using a resale/exemption certificate

Most states let registered retailers buy inventory tax-free by giving the seller a resale certificate.
Typical steps:
1. Get an EIN (IRS).
2. Register for a sales tax permit in your home state.
3. Use your state’s resale certificate (or a Streamlined Sales and Use Tax Exemption Certificate where accepted) when buying inventory. Keep it on file with the retailer.
Common friction:
- Some retailers won’t accept out-of-state certificates.
- You must collect and remit sales tax when required on retail sales to customers in your nexus states (marketplaces often do this for you, but documentation is still on you).
- Certificates are for inventory, not supplies for your own use.

2) Ship to a no-sales-tax state (trusted reshipper or warehouse)

Sending inventory to DE/MT/NH/OR (and most parts of AK) can remove sales tax at checkout with many retailers.
Cautions:
- Only work with legit reshippers/fulfillment centers that provide documentation, receiving logs, and insurance.

1) Buy for resale using a resale/exemption certificate

Most states let registered retailers buy inventory tax-free by giving the seller a resale certificate.
Typical steps:
1. Get an EIN (IRS).
2. Register for a sales tax permit in your home state.
3. Use your state’s resale certificate (or a Streamlined Sales and Use Tax Exemption Certificate where accepted) when buying inventory. Keep it on file with the retailer.
Common friction:
- Some retailers won’t accept out-of-state certificates.
- You must collect and remit sales tax when required on retail sales to customers in your nexus states (marketplaces often do this for you, but documentation is still on you).
- Certificates are for inventory, not supplies for your own use.

2) Ship to a no-sales-tax state (trusted reshipper or warehouse)

Sending inventory to DE/MT/NH/OR (and most parts of AK) can remove sales tax at checkout with many retailers.
Cautions:
- Only work with legit reshippers/fulfillment centers that provide documentation, receiving logs, and insurance.

1) Buy for resale using a resale/exemption certificate

Most states let registered retailers buy inventory tax-free by giving the seller a resale certificate.
Typical steps:
1. Get an EIN (IRS).
2. Register for a sales tax permit in your home state.
3. Use your state’s resale certificate (or a Streamlined Sales and Use Tax Exemption Certificate where accepted) when buying inventory. Keep it on file with the retailer.
Common friction:
- Some retailers won’t accept out-of-state certificates.
- You must collect and remit sales tax when required on retail sales to customers in your nexus states (marketplaces often do this for you, but documentation is still on you).
- Certificates are for inventory, not supplies for your own use.

2) Ship to a no-sales-tax state (trusted reshipper or warehouse)

Sending inventory to DE/MT/NH/OR (and most parts of AK) can remove sales tax at checkout with many retailers.
Cautions:
- Only work with legit reshippers/fulfillment centers that provide documentation, receiving logs, and insurance.

Regular Reshipper vs. KNET (what changes for you)

KNET is a cross-listing and fulfillment tool built for sneaker resellers. Here’s how that compares to a typical reshipper:

Regular Reshipper vs. KNET (what changes for you)

KNET is a cross-listing and fulfillment tool built for sneaker resellers. Here’s how that compares to a typical reshipper:

Regular Reshipper vs. KNET (what changes for you)

KNET is a cross-listing and fulfillment tool built for sneaker resellers. Here’s how that compares to a typical reshipper:

Topic

Regular Reshipper

KNET (as your fulfillment + sales stack)

Purpose

Just receives/forwards boxes

Receives inventory and powers sales: cross-listing (StockX, GOAT, eBay, KICKS CREW, POIZON, TikTok Shop, KNET, KNET B2B, Surge), auto-pricing, auto-delist (built-in)

Visibility

Tracking numbers, maybe photos

Portal view of inventory + statuses; price search; list everywhere with minimum payout + undercut lowest ask strategies

Pricing control

You adjust per site

One floor across channels, auto-pricing handles the rest

Pricing control

You manage

KNET eats returns so you’re not stuck with surprise fees or dead stock from that channel

Important: KNET doesn’t provide tax advice or guarantee tax outcomes. You’re responsible for compliance (resale certificates, use tax, registrations, etc.).

Supplies, labor, and “leaks” still apply

Even when you cut tax, remember the other drips that eat margin:

Labor (even your own time has a cost)
Supplies (boxes, tape, labels)
Cancellations/oversells/returns (KNET reduces some pain, but plan a buffer)
Inevitable losses (bad buys, liquidation, scams—another reason to protect every dollar on the inbound side)

Where to Sell (keep it simple)

Use the places where you can control price and move volume.

Some pairs can go on apps (StockX/GOAT) when the spread is there.
Other channels have less competition and better control.
TikTok Shop was strong for UGG last year.
There are also low-key channels not crowded yet (names withheld).

Point is: don’t judge a buy only by StockX/GOAT asks.

UGG is a “sell near retail” game. The win is how well you source and how fast you move.

If you’re on KNET, listing, price floors, and fulfillment are handled in one place.

You can push the same SKU to many outlets and keep payouts steady without babysitting.

Where to Sell (keep it simple)

Use the places where you can control price and move volume.

Some pairs can go on apps (StockX/GOAT) when the spread is there.
Other channels have less competition and better control.
TikTok Shop was strong for UGG last year.
There are also low-key channels not crowded yet (names withheld).

Point is: don’t judge a buy only by StockX/GOAT asks.

UGG is a “sell near retail” game. The win is how well you source and how fast you move.

If you’re on KNET, listing, price floors, and fulfillment are handled in one place.

You can push the same SKU to many outlets and keep payouts steady without babysitting.

A Simple Playbook to Keep More Margin

Decide your path: resale certificate, tax-free routing, or both (with a CPA’s guidance).
Document everything: permits, certificates, invoices, receiving logs.
Price for speed: set minimum payout and turn on auto-pricing (undercut) so you’re first in line without breaking your floor.
List everywhere: more channels = more buyers = faster turns at your target net.
Audit monthly: confirm retailers honored your exemption/tax-free routing; reconcile payouts; check that your actual margins match plan.

A Simple Playbook to Keep More Margin

Decide your path: resale certificate, tax-free routing, or both (with a CPA’s guidance).
Document everything: permits, certificates, invoices, receiving logs.
Price for speed: set minimum payout and turn on auto-pricing (undercut) so you’re first in line without breaking your floor.
List everywhere: more channels = more buyers = faster turns at your target net.
Audit monthly: confirm retailers honored your exemption/tax-free routing; reconcile payouts; check that your actual margins match plan.

A Simple Playbook to Keep More Margin

Decide your path: resale certificate, tax-free routing, or both (with a CPA’s guidance).
Document everything: permits, certificates, invoices, receiving logs.
Price for speed: set minimum payout and turn on auto-pricing (undercut) so you’re first in line without breaking your floor.
List everywhere: more channels = more buyers = faster turns at your target net.
Audit monthly: confirm retailers honored your exemption/tax-free routing; reconcile payouts; check that your actual margins match plan.

Bottom Line

Cutting (or eliminating) sales tax on inventory—legally—can be the difference between passing on a brick and scaling it. Every saved 5–10% turns into more buys, faster cash flow, and less pressure on price bumps.

Handle the paperwork, use trusted logistics, and let your pricing system and channel spread do the heavy lifting.

Bottom Line

Handle the paperwork, use trusted logistics, and let your pricing system and channel spread do the heavy lifting.

Bottom Line

Handle the paperwork, use trusted logistics, and let your pricing system and channel spread do the heavy lifting.

Business

September Seller Summit Recap

Oct 28, 2025