Rethink Your S&H Rate Schedules

George Isaacson, tax counsel to The DMA’s Sales and Use Tax Committee, says if you’re including indirect costs, then you really can’t call them S&H fees. “You should call them, perhaps, shipping and processing charges,” he notes.

• Do a fulfillment-cost study, especially if you’re unsure what expenses you should be recouping in your S&H charges, says Isaacson. Look particularly at how you’re allocating your cost centers to your S&H price schedule.