Medical Devices - Avon, Ohio, United States
French Creek Medical was an award-winning distributor of physical therapy supplies and medical supplies. FCM had offered free local delivery of rehab supplies and medical supplies in Cleveland, Ohio from 2005 to 2019. French Creek Medical closed in 2019 when: 1) Amazon Prime moved into Cleveland, Ohio. This strategic move by Amazon would change the market overnight. During this watershed moment, manufacturers would begin to sell their products directly on Amazon. Meanwhile, some manufacturers would prohibit their dealers from doing the same. 2) Overnight, the Wayfair decision would rewrite the rules for the collection of sales tax in 45 states and within the District of Columbia. Following the Wayfair decision of June 2018, vendors would be required to collect applicable sales tax in all states that have a sales tax. This would be the case, even if the vendor had never set foot into a particular state. The Wayfair decision overturned the earlier decision that was set by Quill vs. North Dakota. After this moment, distribution would now be better-suited for larger companies with a tax department. Forward from this point, each company would need to employ a large tax department that could manage the application of vendor licenses in 45 states, and thereafter, the collection and remittance of sales taxes. In addition there would be countless changing sales tax rates across the United States. Finally, sales tax is usually remitted two times a year in each state that has a sales tax. This would be a huge amount of red tape to be completed before the business makes one dime of profit. It was decided there are easier ways to make a living.