Member Avatar for Ancient Dragon

I just started a new store (see my signature for link). It was set up on IPage with a few simple steps. The problem is that I don't know how to calculate shipping costs. How is that done for UPS? Also how about sales taxes? AFAIK USA does not have sales taxes on web products, but I could easily be wrong about that. Am I supposed to collect sales taxes?

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Updated, practical guidance for and others: this thread started in 2011, and both carrier pricing rules and sales‑tax law have changed since then. The replies from , and pointed in useful directions (tax collection and using carrier integrations). Below is a concise, up‑to‑date roadmap for getting accurate UPS charges into a cart and for confirming sales‑tax obligations.

For UPS rates

  • Open a UPS business account and obtain API credentials via the UPS Developer Kit: .
  • Make sure every product has a correct weight and, where relevant, dimensions. Carrier pricing often uses dimensional (DIM) weight, not just pounds.
  • Implement carrier‑calculated rates in your store (platform plugin or a shipping aggregator/bridge). Configure origin address, default packaging options, and whether to add a handling fee or free‑shipping thresholds.
  • Test with UPS staging keys, verify quoted rates against actual billed invoices, and consider negotiating commercial rates with UPS once volume justifies it.

For sales tax

  • The 2018 South Dakota v. Wayfair decision created economic nexus rules: many states now require remote sellers to collect tax when sales exceed state thresholds. See the decision: Wayfair (SCOTUS).
  • Marketplace‑facilitator laws mean some marketplaces collect tax for sellers; other sales still require seller registration, collection, and remittance. Current summaries help track which states apply which rules: .
  • Action items: determine nexus states for your business, register for permits where required, confirm whether states tax shipping charges, and set up tax calculation (automation services or a tax specialist).

Quick checklist

  • Set accurate weights/dimensions, create a UPS account and get API keys, enable carrier rates or use an aggregator, test thoroughly. Separately, determine sales‑tax nexus, register where needed, and automate calculation/filing or consult a tax pro before going live.

Recommended Answers

All 6 Replies

Member Avatar for Ezzaral

You will need to collect and remit sales tax on sales made in your own state.

Member Avatar for AndrewH

yeah, you will have to do that

Member Avatar for mb01a

I use OSCommerce for my sites and have FedEx shipping available. FedEx has an API that gets installed into oscommerce and gives me shipping charges based on the weight (in pounds) of what I sell.

Tax calcs are also built in. I charge tax in my home state only.

Member Avatar for rocco88

They have many plugins. It might be best to do a flat rate,

Member Avatar for mb01a

Flat Rate shipping causes 1) customers to go elsewhere because your rates are too high, or 2) you lose money because your rates are too low. At best, flat rate shipping is a gamble.

Better to get an actual shipping charge from FedEx, UPS, or the Post Office. The FedEx module I use is called "fedex1.php". It's provided by FedEx. It gets a shipping charge directly from Fedex and presents it to me. I just add it to the customers order.

Member Avatar for mark santa

yeah ofcourse,you need to collect that.
and for the shipping charges if you dont get it from the customer,then you have to pay it

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