Post Diss: Amazon sales tax

By Meryl Gottlieb | | @merylgottlieb

In my opinion, was always the place to buy pretty much anything one’s heart could desire. Where else could I buy a CD for $0.01?

I’ll answer my own question: NOWHERE. Especially not at Barnes & Noble, where a DVD cost $20 versus Amazon’s price of $4. I rest my case.

So, whenever it came time to buy presents, either for others or for myself, I always hit up the Internet, just like the many other shoppers of the world did as well.

Now, unfortunately, Amazon is being forced to collect sales tax more and more on its products based on where the item was purchased. To spare us all the legal mumbo-jumbo, Amazon is now beginning to collect sales tax in California, Pennsylvania (no, not my hometown!), Texas, Kentucky, New York and other states as a result of an ongoing battle between the company and the states in general. The states’ largest avenue for profit is from collecting sales tax, thus they were losing massive amounts of money from the e-shopping market since many Internet retailers did not collect sales tax on items sold.

With the economy still in the toilet, I can perfectly understand the states’ reason for wanting this uncollected money, but I am still not happy about it. I go to Amazon so that I can spend a total of $10 for multiple items, but now I’m saddened at the thought that the multiplicity of my money on the Internet is decreasing.

Furthermore, I can rightfully assume that Amazon is more upset than its consumers about the tax collection, for not having to impose a sales tax on its items was its biggest competitive edge.

On a lighter note, Amazon only seems to be succumbing to the tax issue in states where it sees strategic value in creating massive warehouses that it is beginning to build to sell its merchandise from. These warehouses will allow for much quicker shipping and will hopefully be the new angle of competition for the site. It is even estimated that it can cut its two-day shipping in half due to the construction of the warehouses… for a measly million dollar shipping cost I would assume.

Despite this travesty, I know I, and so many others, will still continue to shop on the site because, honestly, those prices have never and will never be beaten.


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