Affiliates Feel Heat from California’s Sales Tax Law (6:59)

Posted on by Abby Johnson |

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The impact of the California online sales tax law that was recently passed is still being felt. The law nicknamed the “Amazon Tax Law” requires online retailers to pay taxes on their affiliate advertising. Once the law was passed, Amazon, and many other online retailers, dropped their affiliate programs in the state to avoid the tax.

Nick Loper is one affiliate marketer that saw his life drastically change as a result of the law and the action from online retailers. As he explained to WebProNews, he lost 70 percent of revenue from his comparison shopping site ShoesRUs, essentially, overnight.

For this reason, he packed up and moved to Nevada, which has no online sales tax, to start a new business called ShoeSniper.

Posted in: Advertising and Marketing, Shopping
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