Notes on D2C Podcast with Kevin Liu, CEO of Numeral

Introduction

• Host: Eric Dick
• Guest: Kevin Liu, CEO of Numeral
• Kevin is an e-commerce entrepreneur and certified public accountant
• Numeral was built with Y Combinator backing
• Focus: Multi-state e-commerce tax filing solution

Key Takeaways

Building Numeral

• Why Numeral?
  • Built to solve sales tax issues for e-commerce sellers
  • Personal experience with e-commerce tax challenges
  • Existing solutions were inadequate

Sales Tax Challenges

• Supreme Court case (Wayfair vs. South Dakota, 2018) changed sales tax collection rules
• Before 2018: No need to charge sales tax without physical presence
• After 2018: Economic sales threshold triggers tax collection
• Companies must register and remit taxes in each state they sell in
• Process is complex and time-consuming

Numeral's Solution

• Goal: Simplify and automate sales tax filing
• Tagline: Spend fewer than five minutes a month on sales tax
• Process:
  • Install Shopify app
  • Numeral handles monthly sales tax report generation and filing
  • Users review and approve reports
• Financial Aspect:
  • Cost-effective compared to hiring full-time staff
  • Transparent pricing: $75 per state filing

Comparison to Competitors

• Competitors like Avalara have clunky UIs not tailored for e-commerce
• Numeral focuses on a modern, user-friendly experience

Y Combinator Experience

• Y Combinator provided a platform to refine and scale Numeral
• Emphasis on achieving a wide-reaching business impact

Market Strategy

• Short sales cycle due to clear pain point resolution
• Focus on transparency and efficiency
• Target: e-commerce businesses with $1M-$50M annual revenue

Financial Insights

• Kevin emphasizes the importance of business owners doing their own books
• Understanding financial metrics and charges is crucial

Future Directions

• Potential expansion into other financial services like bookkeeping and tax strategy
• Aim to become a comprehensive financial hub for e-commerce

Closing Thoughts

• Numeral streamlines sales tax to allow businesses to focus on core activities
• Encouragement to view sales tax management as a non-core task to automate
• Call to action: Visit numeralhq.com to book a demo

Conclusion

• Numeral is positioned as a critical tool for modern e-commerce businesses
• Emphasizes the importance of financial efficiency in a competitive market

Contact Information

• Website: numeralhq.com
• Podcast Host: Eric Dick
• Podcast: D2C Podcast