Amazon holiday results to show sales tax impact

Comments (2)
crawdoogie wrote:

Way to go State of California and BestBuy! Increasing the profits for BestBuy by sticking it to the taxpayers. Amazon’s whole business model blows BestBuys corporate model of greed away. For instance, just try to return something to BestBuy,man what a pain. While with amazon you just print up a usually prepaid return label, slap it on the box and drop it at UPS. Done.
So what did Amazon do in response to this? They have just opened a 1,000,000 sq ft. distribution center in San Bernardino California and provided 1,000 new jobs in area with unemployment near 14% and without any tax concessions from the city, county, or state. AND median pay inside Amazon’s fulfillment centers is 30% higher than jobs in traditional retail stores. AND at a time when other businesses are cutting employee benefits Amazon provides a full range of benefits, including shares of company stock, paid time off, an employee discount, and life and disability insurance.
So Best Buy has leveled the playing field? Hardly. Best Buy will be history within five years now that Amazon has moved into Best Buys turf with still better prices and way better services Amazon’s plan is to implement same day deliveries and are adding another mega distribution center in Northern Cal. Bye-bye Best Buy.

Jan 17, 2013 6:26pm EST  --  Report as abuse

Sales taxes or not, so long as Amazon has the cheaper price, that’s where I’m shopping. Plus I don’t have to worry about getting to a store, dealing with crowds, shoving the boxes into my car at odd angles and “hoping” I can shut the trunk/doors, etc.

Click, confirm, two-day shipping to my door, no muss and no fess all for cheaper than dealing with brick-and-mortar even with sales tax.

“Main St” merchants just don’t get it. If you can’t be competitive, innovative, and market/advertise correctly to draw customers into your store, then maybe you shouldn’t be in business.

Sales taxes in the long term aren’t going to “level” the “playing field” so long as Amazon offers the merchandise people want at lower prices and offer deals on shipping making it uber-convienent for consumers to shop.

That’s called healthy marketplace competition.

Jan 17, 2013 8:05pm EST  --  Report as abuse
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