- The perfect checkout flow is quick, clear, effortless, accurate, and cost-efficient. It should only ask for necessary information and avoid unnecessary friction.
- Many companies have optimized the item selection and payment process in the checkout flow, but few have mastered the tax component, which often requires collecting and validating tax IDs.
- Collecting tax IDs at checkout was previously considered unnecessary friction, but tax managers have pointed out that it can impact revenue and customer retention. In-house tax professionals are discussing how to include tax ID collection and validation in the checkout process.
- The checkout process is critical in e-commerce as it impacts sales conversion. Poorly designed processes can lead to cart abandonment and failed transactions.
- Determining and collecting indirect taxes like VAT and GST is important in online sales. Businesses need to understand if taxes apply based on B2B or B2C transactions and validate tax IDs to charge the correct amount. Overcharging or undercharging taxes can lead to financial consequences and customer dissatisfaction.
Source Fonoa
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