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by Surio 4867 days ago
The crux of the article is this:

Amazon joins Walmart in push for online sales tax not out of some newfound concern for "marketplace fairness," but because Amazon's business model is changing in such a way that now Amazon stands to benefit from this tax.

In order to provide faster shipping, Amazon is building warehouses throughout the country. These warehouses constitute a "physical presence," which requires them to collect sales taxes, in any event. So, if Amazon is going to have to collect sales taxes under the existing "physical presence" doctrine, it may as well try to expand online sales taxes to whack its smaller competitors who don't have a 50-state network of giant warehouses.

Sigh!

4 comments

It's the same as when Wal Mart pushed for higher minimum wage. The target they argued for was below their own minimums, and it would only serve to decrease profits at other stores where they paid the actual current minimum wage.
The article doesn't mention one important historical factor. For years, Amazon was fighting to not collect taxes until more and more states started passing laws saying online retailers must collect sales tax at the behest of B&M merchants. Rather than fight a losing battle, they decided to beat those merchants at their own game: "Fine, you want us to collect sales tax? We'll build warehouses everywhere and have same day delivery instead of having warehouses in only a couple of states."

I live in NY where Amazon already collects sales tax so it doesn't really matter to me.

I'm not sure if I'd be unhappy about paying sales tax on Amazon purchases if it meant free same-day shipping as a Prime member (or free next-day shipping for non-Prime), which is what I recall they're looking at switching to once their network of warehouses is ready.
I just want Amazon Fresh, then I never have to leave the house.
As someone who uses Amazon Fresh, there are still things you want to leave the house for such as produce. Fresh has different categories for freshness, but I've found it not to mean that the produce is going to be ready to eat anytime soon.

I've found myself using Fresh for basic things, which the vast majority are on amazon's normal site.

That's more or less what they're working towards. Although Safeway.com can already deliver that.
Yeah, but the online interface and experience is atrocious. Tried it a few times and it simply doesn't compare to going to the store.
Amazon really doesn't have any competitors in the mail order business. Any would-be competitors are partners/clients.
That businesses may use Amazon services like FBA does not mean they aren't directly competing with Amazon's B2C.