Avalara Pricing

According to a 2018 survey by the National Small Business Association, 43% of small businesses spent between 1 and 10 hours each month dealing with sales tax. That means a small business can spend up to 120 hours a year, or 3 full work weeks, navigating sales tax requirements.

Sales tax software, such as Avalara's offerings, automates much of this burden by integrating directly with business systems to calculate, collect, and remit sales taxes across various jurisdictions. Since you want to make informed decisions for your business, it’s important to research Avalara’s pricing structure so you can evaluate their product offerings.  

Overview of Avalara's Pricing Model

Avalara's pricing model is designed to serve businesses of all sizes, from startups to large enterprises. It incorporates several key components that have a significant impact on costs and benefits.

Subscription-Based Pricing

Avalara predominantly offers subscription-based pricing plans, providing businesses with predictability in costs for their sales tax automation requirements. These plans are structured on a monthly or annual basis, offering flexibility aligned with your operational preferences and financial budget.

Breakdown of Monthly and Annual Subscription Plans

• Monthly Plans: Geared towards businesses requiring flexibility without the commitment of long-term contracts.
• Annual Plans: Designed to offer cost savings and stability for businesses committed to sustained sales tax automation.

Volume-Based Discounts

Understanding how Avalara adjusts pricing based on transaction volume is pivotal for making cost-effective decisions. Higher transaction volumes typically qualify for volume-based discounts, promoting scalability and operational efficiency in sales tax management.

Additional Fees and Charges

In addition to subscription fees, Avalara's pricing structure includes supplementary costs that businesses should consider:

• Setup and Integration Fees: Initial expenses associated with configuring Avalara's services to suit your business's specific requirements.
• Additional Service Fees: Charges applicable for specialized services such as custom integrations or dedicated support, enhancing the scope of sales tax automation.

Avalara’s Core Product Offerings and Their Costs

Avalara AvaTax

AvaTax offers sales tax calculation and management solutions for e-commerce businesses, retail chains, manufacturers, and service providers. Pricing tiers vary based on business needs:

• Basic Tier: Includes essential features for accurate tax calculation.
• Advanced Tier: Adds functionalities like address validation and product taxability rules.
• Enterprise Tier: Customizable solutions for complex tax requirements and large-scale operations.

Avalara Returns

Designed for automated sales tax preparation, filing, and remittance across various jurisdictions, Avalara Returns also offers tiered pricing based on business needs:

• Basic Filing Services: Entry-level option for businesses with straightforward sales tax filing needs. Current information shows the basic Avalara Returns plan starts at $19/month.  
• Standard Compliance Solutions: Mid-range option offering more comprehensive features for managing sales tax compliance across multiple jurisdictions.
• Advanced Compliance Services: Tailored solutions with advanced features and support for businesses with complex sales tax requirements or extensive operations.

Avalara CertCapture

Avalara CertCapture is designed for document management and exemption certificate compliance. It aims to simplify the collection, storage, and validation of exemption certificates and other compliance documents.

The document volume tiers for Avalara CertCapture typically include:

• Basic Tier: Suitable for businesses managing a moderate volume of exemption certificates and compliance documents.
• Standard Tier: Offers enhanced capacity and features for businesses with a higher volume of documents to manage.
• Enterprise Tier: Tailored for large-scale operations or businesses with extensive compliance needs, providing document management capabilities and advanced features such as bulk uploads and automated workflows.

Avalara Pricing Models

Avalara’s pricing and fees are complex and the company does not provide any information publicly without interacting with their sales team. However, here are the latest pricing details we found from third-parties online: 

AvaTax 

• Ranges from $16,500 to $35,900 for businesses with less than 200 employees
• Pricing increases to $19,600 to $39,400 for businesses with 1,000 employees
• Ranges from $32,400 to $78,200 for enterprise businesses with over 1,000 employees
• Tax returns range from $42 to $54 per filing plus an activation fee of anywhere between $25 and $475.
• Specific pricing for small businesses, midsize enterprises, and new businesses requires direct contact with Avalara.

Challenges and Criticisms of Avalara’s Pricing

While Avalara claims their pricing aims to provide transparency and flexibility, challenges include:

• Transparency Concerns: Customers have expressed feedback regarding the clarity of Avalara’s pricing structures. The variability in pricing based on factors like volume, industry, and possibly timing within the fiscal year can lead to uncertainty about the total costs involved.

Here are a few customer reviews found online:

“It is impossible to receive an answer from the support team regarding billing. For a month now I've been trying to understand the 4x price increase we received after almost 10 years. There was no explanation on the renewal notice.”

“It can be expensive to have them file for you in many states if you have a nexus there.”

“That EVERYTHING is a cost and nothing is all encompassing. From the customer service to the number of transactions/returns you have, each one is a cost and it's not cheap”

• Complexity Issues: Managing multiple fees and understanding their implications can add complexity to evaluating Avalara’s offerings. Different pricing models based on transaction volumes or specialized industry solutions may require careful consideration to ensure alignment with budgetary and operational needs.

A few more online reviews:

“Their customer service is awful. They close claim tickets without even working with you to fix the problem. When you do get a zoom meeting you never talk with the same person twice so you have to start over. They point the blame to other platforms you use as the source of your problem. Some of our issues have gotten worse by the fixes that their customer service reps have implemented to fix other issues.”

“The software itself is not terribly bad; however the customer support is atrocious! If you have any questions it may take days or weeks for someone to get back to you (if ever).”

Understanding Avalara’s Pricing Structure

Understanding how Avalara structures its pricing is essential for businesses exploring sales tax solutions. So whether you're a small startup aiming to simplify tax compliance or a global enterprise seeking efficient solutions, make sure the sales team fully explains the following:

Subscription Options: Choose between monthly or annual plans to match your financial and operational preferences.

Volume Discounts: Benefit from scalable pricing based on transaction volumes, ensuring cost efficiency as your business grows.

Additional Fees: Be aware of setup, integration, and additional service fees that may apply, depending on your customization requirements.

Specialized Services: Explore industry-specific solutions tailored to address unique compliance challenges, such as those in e-commerce or software development.

In summary, understanding Avalara's pricing structure is essential for businesses evaluating sales tax automation solutions. You will need to engage with Avalara's sales team to clarify pricing details and explore tailored solutions for your business.

Zamp has published a comprehensive comparison of Avalara alternatives where you can get more information about other sales tax software providers and an in-depth comparison of Avalara vs Zamp. 

In short, when comparing Avalara and Zamp pricing, the biggest distinction lies in simplicity and transparency. Zamp offers a straightforward flat monthly fee structure without add-ons or hidden charges. This simplicity means businesses benefit from a predictable cost model that doesn't require navigating complex fee structures or additional charges. 

With Zamp, there's one price for all services offered, ensuring clarity and ease of budgeting. This approach not only simplifies financial planning but also enhances ROI by providing a managed sales tax solution that keeps businesses compliant without the need for extensive management or oversight.

To learn more, schedule a demo with Zamp today and see how our solutions can benefit your business. Get in touch with our team of experts today!