Setting up your Shopify sales channels correctly in the Numeral Dashboard helps ensure that your filings are accurate.
Each Shopify sales channel should be classified as DTC (Direct-to-Consumer), Marketplace Facilitator, or Wholesale. Here’s a quick overview of what each type means:
DTC (Direct-to-Consumer)
These are sales made directly to the final customer — the end user of your product.
Sales through DTC channels are generally considered taxable, unless the product itself is non-taxable in the state where the order is delivered.
Marketplace Facilitator
These channels (like Meta, TikTok Shop, Amazon, Walmart, or the Shopify Shop app) are platforms that collect and remit sales tax on your behalf.
Even if you're selling directly to the end customer, you won’t be responsible for collecting or remitting tax on these sales — the marketplace facilitator takes care of that.
In essence, this means that you will not remit taxes on these transactions when Numeral files for you, as the Marketplace Facilitator will have already done so.
Wholesale
Wholesale sales are business-to-business (B2B) transactions, where the buyer is not the end user and may go on to resell the product.
Sales tax should not be collected on these transactions, as the reseller will handle tax when they sell to the final customer.
It’s important to confirm that the business you are selling the product to (via Wholesale) has a valid resellers certificate.
How to Configure Shopify Sales Channels in the Numeral Dashboard
It's easy! Follow the steps below:
1/ Log into your Numeral Dashboard
2/Head over to the ‘Connections’ tab in the left hand-side menu:
3/ Click ‘Show Details’ in your Shopify Store:
4/ Click 'Manage':
5/ Select ‘Sales Channels’
6/ Use the dropdown menu to select: DTC (Direct to Consumer), Marketplace or Wholesale:
7/Click ‘Save’
You’re all set!
If you have any questions, please send us a message via the widget on the bottom right hand-side of your dashboard.