A new survey of 100 e-commerce and procurement executives at mid- and large-sized companies by e-commerce platform Swap found that tax compliance is among the most stressful tasks they perform, driven by both the complexity of tax laws and the high stakes of noncompliance.
“Digital commerce is growing more sophisticated and more regulated than ever before,” Swap said. “From the rapid expansion of cross-border commerce to the introduction of new state-level tax mandates, businesses are navigating a patchwork of rules that often evolve faster than internal compliance teams can keep pace. This complexity not only strains operational resources but also increases the potential cost of errors, making tax strategy a board-level concern for many organizations.”
As Trump’s global tariff offensive continues, economic uncertainty, tariffs, new trade policies, and supply chain disruptions are pushing e-commerce companies to rethink their market strategies.
The survey found that 84% of executives are increasing their focus on domestic markets in 2025, with 72% making a significant shift. Nearly three-fourths (74%) cite the negative impact of new international regulations or trade policies as a primary driver. For 71%, focusing on the U.S. will simplify supply chain, inventory, and fulfillment needs, making it a strategic move to avoid global volatility.
However, Swap’s report found that strict, hard-to-navigate national tax regulations disrupt smooth online retail operations for businesses.
The survey revealed that 68% cite keeping up with varying state tax codes remains a major challenge, closely followed by the risk of lengthy audits (53%), legal action (49%), losing a license to operate (47%), and financial penalties or interest charges (45%).
Because tax compliance requires significant resources, most companies say they’re using at least four different tools to manage domestic and international requirements. Many spend at least 40 hours per month on these tasks, while 65% are exploring or planning to purchase new automation software, often with artificial intelligence capabilities, to ease the burden, the survey found.
“Tax compliance has shifted from being a back-office function to a strategic business imperative,” Juan Pellerano-Rendon, chief marketing officer at Swap, said in a statement on Sept. 9. “The pace of regulatory change means companies can’t simply react—they need proactive systems that anticipate challenges before they become costly problems.”
Photo credit: Jae Young Ju/iStock
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Tags: ecommerce, economy, online retailers, tariffs, tax compliance, Taxes, trade policies
