Should I charge taxes on dropshipping product variants?

Hi! How are you doing?

I’m currently adding products to my dropshipping store, and while I was editing the variants’ pricing of one of my products I noticed that in the ‘Pricing’ section under ‘Variant Options’, there’s a checkbox for to whether charge tax on the variant or not.

How do I know whether to charge taxes on variants or not?

I live in Europe, so if anyone else here is from Europe and already has a live store, how did you address this subject?

Thanks in advance for your answers!

Yoav

Hi there, @Yoav11 !

As we can’t give tax advice at all from here in Shopify, when it comes to questions of liability we would always have to direct you to consult a qualified expert where you are.

That said, I can let you know generally that this option is presented so merchants can distinguish between product variants that do and do not need to be taxed, depending on the requirements where they are.

Once you know what you need to do in terms of tax, you use your Shopify tax settings to reflect this.

You mentioned you’re in Europe, so you might like to check out our guide on setting up EU taxes if relevant.

Are you selling baby products in your store, or is that screenshot just an example?

Hi, thanks for your answer! And to your question - yes, my store theme is baby products.

Hi there, @Yoav11 !

Thanks for getting back to me here and apologies for my delay in responding as I have been away from work recently.

I’d like to offer more general support in terms of what you can do to drive traffic to promote your new store:

  1. Build a brand identity: Create a memorable and recognizable brand with a unique brand name, logo, and design that represents your store’s values and products. Be consistent in your branding across all of your marketing efforts, including your website, social media, packaging, and advertising.

  2. Understand your market and audience: Research your customers’ needs, wants, and preferences to determine your target audience. Conduct a survey or focus group to gather valuable insights and tailor your marketing efforts to your customers’ desires.

  3. Optimize your website for conversions: Optimize your website for user experience, load time, and mobile responsiveness. Ensure that your website is easy to use and navigate, with clear calls-to-action and product descriptions. Use high-quality images and videos to showcase your products.

  4. Leverage social media: Identify the social media platforms that your target audience uses and regularly post engaging content to build a following. Use social media to promote your products, offer special discounts and promotions, and engage with your customers.

  5. Build an email list: Create an email newsletter to keep your customers up-to-date on your products, promotions, and company news. Encourage visitors to sign up for your newsletter by offering a discount or a free gift.

  6. Offer incentives for referrals: Create a referral program to encourage customers to refer their friends to your store. Offer discounts, free gifts, or other incentives for each successful referral.

  7. Collaborate with influencers: Partner with influencers in the parenting and baby product niche to promote your products to a wider audience. Choose influencers with a significant following and an engaged audience to maximize your reach.

By following these marketing tips, you can build a strong brand, attract new customers, and increase sales for your Shopify store selling baby products!