I built a 2-sided marketplace for skate shoes

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2 points·bennyschmidt··4 comments

How do you handle payment and taxing?

The payments library behind Kickflip is based on Square, who manages sales tax automatically. A buyer in Oregon will not pay sales tax, while a buyer in California will. Because Kickflip is only available in the US for now, it's pretty straightforward and automatic through Square. They also very securely manage compliance around credit card entry.

Selling on Kickflip, as with any other online selling, should be reported to the IRS by the seller as income.

Finally, Kickflip uses Shippo to generate USPS shipping labels, and they also provide nice out-the-door quotes that are surfaced to the user at checkout.

Great question, thanks for asking!

Thank you very much!

but as a market place, do you collect commission for each sale?

Can that be implemented with Square. There are a few payment APIs, but I don't know how to create a market place with them.

Yes, there is a flat 10% fee for each sale to cover processing costs and service provider fees, but no listing fee or any other hidden fees, and the buyer pays shipping at checkout. So if you sold a $20 shoe, you'd receive $18. The buyer would pay ~$25 or so with tax and shipping.

The prices on products can be 1 of 3 fixed conditions: "Good" ($15), "Great" ($20), and "New" ($25).

Kickflip's payment library is called Fern (based on Square) and is designed around marketplaces, giving users the ability to spend from their current active balance, and it allows the developer to cut and track commissions. Also with Fern the end user has a dashboard they can log into to track their sales, request payouts, etc.

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