When luxury goods cross borders online, someone has to be legally responsible for the sale: taking payment, charging the right tax, paying duties and handling compliance. That party is the Merchant of Record. Choosing the right model can make or break cross-border growth.
What a Merchant of Record does
- Is the legal seller on the transaction.
- Processes payment and manages chargebacks and fraud.
- Calculates and remits sales tax, VAT and duties.
- Handles consumer and customs compliance in each market.
Why it matters for luxury
Luxury orders are high value, which means higher tax and duty amounts, stricter fraud checks and more scrutiny at customs. A mistake on a single order can wipe out the margin on many others.
The three common setups
- Each seller is its own Merchant of Record in every market. Full control, but very heavy to run.
- The retailer or marketplace is Merchant of Record. Simple for the supplier, but only within that one channel.
- A distribution platform is Merchant of Record across channels. One partner handles payment, tax and duties everywhere you sell.
How Stork uses the model
Stork acts as Merchant of Record between suppliers and online retailers. For suppliers, that means payment, tax and duties are handled and you are paid your net price on agreed terms. For online retailers, Stork settles like any vendor after your customer has paid. For brands, every sale is traceable and compliant.
FAQ
Do suppliers need tax registrations in every country?
Not for sales through Stork, because Stork is the Merchant of Record on those transactions.
Who handles chargebacks?
The Merchant of Record handles payment disputes on the transactions it processes.
Apply to Stork to sell across borders without the overhead.
