The United States transportation industry has witnessed a significant boom in e-commerce shipments, with revenues soaring to $706 billion according to the latest annual data. This represents a 7% increase compared to the previous year, highlighting a growing trend towards digital transactions and fulfillment.
Key findings
- Ecommerce dominance. E-shipments now account for 80.4% of total sales value in the transportation industry.
- Continued growth. Experts predict this trend will continue as part of a sustained transition to digital operations.
State-level growth
The research, conducted by State and Local Tax specialists at Source Advisors, reveals significant growth in transport equipment manufacturing across various states:
- Indiana: $12 billion increase (15% year-over-year growth)
- Texas: $9 billion increase (16% year-over-year growth)
- Alabama: $3.9 billion increase (9% year-over-year growth)
Tax implications
Chris Vignone, managing director at Source Advisors, warns of potential tax challenges for companies expanding their e-commerce operations across multiple states:”
Companies that are expanding their market presence across the USA must be acutely aware of how each sale affects their tax liabilities. Selling products in multiple states means navigating a complex web of local tax regulations, where each state’s rules determine tax obligations.”
To avoid unnecessary tax burdens, Vignone advises companies to invest in robust tax management systems as they expand their online presence.
As the transportation industry continues to embrace e-commerce, businesses must remain vigilant about the tax implications of their digital growth while capitalizing on the clear benefits of expanding their online operations.