Stephanie Iken, Attorney at Law

What Musicians in Pensacola and the Gulf Coast Should Know

Selling merchandise online and selling merchandise in person look similar on the surface. A shirt is a shirt, a sticker is a sticker, and money still changes hands.

But legally and practically, they are not the same thing.

It’s important to understand how online merch sales differ from in-person sales can to avoid tax issues, venue conflicts, and administrative headaches.

The Big Difference: Where the Sale Happens

In short, in-person sales happen at a physical location while online sales happen across state lines, sometimes across the country.

That difference affects:

• Which taxes apply
• When tax collection is required
• How records should be kept
• What platforms handle for you versus what they do not

Many musicians assume online sales are simpler. Sometimes they are. Sometimes they create new obligations you do not see right away.

In-Person Merch Sales: The Local Rules Apply

When you sell merchandise at a show, festival, or pop-up table in Pensacola or nearby areas, the transaction happens in Florida.

That usually means:

• Florida sales tax applies
• You are responsible for collecting and remitting the tax
• Venue rules control where and how sales occur
• Event organizers may impose vendor requirements or take a percentage

Cash sales count. Card sales count. Small sales still count.

Local enforcement varies, but the legal obligation does not disappear just because the sale was informal.

Online Merch Sales: Platforms Change the Process, Not the Responsibility

Online merchandise sales often happen through:

• Band websites
• Shopify or similar storefronts
• Bandcamp
• Etsy or other marketplace platforms

Some platforms collect and remit sales tax automatically in certain states. Others do not. Many platforms handle payment processing but leave tax compliance to the seller.

You should know:

• Whether the platform collects and remits sales tax on your behalf
• Which states trigger tax obligations based on your sales volume
• Whether Florida sales tax applies to sales shipped from Florida

Online sales can feel more hands-off, but that does not mean the legal responsibility disappears.

Florida Sales Tax and Online Sales

If you are based in Florida and ship physical merchandise from Florida, sales tax may still apply depending on the buyer’s location and the platform used.

Key points to understand:

• Florida sales tax generally applies to tangible goods sold and shipped within Florida
• Out-of-state sales can trigger obligations in other states once sales volume crosses certain thresholds
• Platforms may handle some compliance, but not all

If online sales become a regular or significant income stream, it is worth confirming how tax collection is being handled.

Shipping, Returns, and Customer Expectations

Online sales introduce logistics that do not exist at a merch table.

Consider:

• Shipping costs and timelines
• Lost or damaged packages
• Return and exchange policies
• Customer communication and tracking

These issues are business decisions, not legal requirements, but unclear policies can lead to disputes and chargebacks. Clear expectations protect both you and your buyers.

Inventory and Recordkeeping Differences

In-person sales often involve:

• Cash and card tracking
• Venue settlement sheets
• Same-day inventory changes

Online sales involve:

• Platform dashboards
• Automatic inventory syncing
• Payment processor reports

Both require recordkeeping. Online platforms make it easier to export data, but you still need to review it and keep copies.

Mixing personal and band finances creates confusion fast in both settings.

Which Is Better?

That depends on your goals.

In-person sales offer:

• Immediate income
• Higher impulse purchases
• Personal connection with fans

Online sales offer:

• Passive income between shows
• Broader reach
• Easier scaling over time

Many musicians use both. The key is understanding that each method comes with different obligations and planning needs.

Best Practices for Using Both

• Treat merch as a business activity, not a side hustle
• Know which platform handles what
• Keep consistent pricing when possible
• Track inventory across channels
• Review tax obligations as sales grow
• Ask venues and platforms questions before assuming anything

Final Thought

Merchandise sales support creativity, touring, and independence. The format you choose affects how much administration comes with that income.

Understanding the differences between online and in-person sales helps you choose systems that fit your band’s size, goals, and tolerance for logistics.

Disclaimer
This post is for general informational purposes only and does not constitute legal or tax advice. Laws, regulations, and enforcement practices vary by location and may change over time. Reading this post does not create an attorney-client relationship. If you have questions about your specific situation, you should consult a qualified attorney or tax professional familiar with local and state requirements.