The Senate has decided to fix the gap between online and brick-and-mortar businesses with its Marketplace Fairness Act of 2013. Sounds exciting - perhaps - but since when was the Senate able to fix on what is fair? Let’s face it, fair is often based on what side of the taxes you are on and this seems like it could be a stumbling block for distributors pushing further into e-commerce.

The States will be on the receivership side of this one and many of them stand to make millions, possibly billions that will allegedly go to fund schools and other government interests. (Check out USA Today’s interactive infographic http://usat.ly/106ziXd). As for the sellers, their pocketbooks won’t be directly hit, but the cost of implementing a system that can handle the different tax codes is a concern. Add to it the need for filing tax forms for what is collected and small-scale e-commerce could be headed for the ropes, despite the $1 million exemption.

It’s not time to panic as the House is still working on getting the act scheduled for consideration. It is time, however, to take a look at what is happening and decide how it will affect your current and future business opportunities in the online arena. We’ll keep you posted as things change and developments occur.

What will this do to distributors? Leave your comments below.