If you are selling multiple types of alcoholic beverages together, or if your alcoholic beverage products are packaged with any kind of merchandise, you need to set up a combo or kit (also called pre-built kits or marketing kits). This is to make sure you’re following all state rules and regulations.
Defining combos and kits in ShipCompliant
Combo or Value Added Product (VAP):
- Available for direct-to-consumer and wholesale distribution.
- A product packaged for retail sale and containing two or more components.
- Compliance, reporting and fulfillment are handled at a SKU (not component) level.
- Combo products are primarily intended for use within wholesale distribution; some states have wholesale product registration requirements for individual components as well as the combo product that includes those components.
Kits:
- Available for direct-to-consumer shipping only.
- A combination of individual products that are pre-packaged or assembled by the shipper.
- Individual kit components are reported on and checked for compliance individually.
- Passed as a single SKU to fulfillment locations, orders will be sent to ShipCompliant using the Kit Key/SKU, while fulfillment, compliance, and reporting will be managed at the component Key/SKU level.
Managing sales tax and compliance
Combos or Value Added Pack (VAP) products are evaluated as a single product.
- The product type is determined using the most tax-restrictive product type included in the Combo or VAP. This type determines the tax rate applied (alcohol, food, merchandise, or freight) to the product when calculating sales tax liability.
- Kits are evaluated as individual component products not only for compliance and reporting, but also for taxes. If a kit includes one wine product and one merchandise product, it will return two amounts and two rates (as applicable).
Kit products are evaluated separately.
- For example, if a wine + merchandise kit is shipped to a state that does not charge tax on merchandise, only the wine product’s rate and the amount will be returned.
- The unit price of the kit will be divided between all included components. This is weighted by both the quantity and the price of each item included in the kit.
How to set up your combos and kits
- In ShipCompliant, go to the Setup tab, then click Products.
- Click the Combos and Kits tab.
- Click Add Combo or Kit.
- Select 1 of the 2 options (see the section, Defining combos and kits in ShipCompliant for more details).
- Click continue.
- Fill out the product details for your selection.
- Click Save. You'll see your newly added item under the Combos and Kits tab (they're not listed under the View Products tab).