Amazon Gets Ready for Sales Taxes

[snakeair]

grrrrr, i'm in NJ btw.

It was a good run, and a long one: After nearly two decades of largely tax-free e-commerce, a growing number of states are forcing online retailers to collect sales taxes. Brick-and-mortar retailers will regain some of their competitive edge, but paradoxically Amazon is likely to benefit from the change.

The past several weeks have seen indications that not only will Amazon and others have to start paying taxes, the company is taking bold steps to prepare for it. New Jersey governor Chris Christie joined other Republican governors in working out deals to start pushing for online taxes in exchange for Amazon distribution centers. But Amazon has countered by pushing into new initiatives, such as laying the groundwork for same-day deliveries, as well as a smartphone that could compete with the iPhone and Android phones.

Continued at: http://www.readwriteweb.com/biz/2012...ales-taxes.php

Your take on this news?

[webcosmo]

sales fee, taxes, its really getting hard to make money these days!

[iPad]

It's a long time due... There is still plenty of sites out there offering products at cheap prices without the sales tax as well.

Amazon has owned the market for a long time because it's had the ability to wipe sales tax from items, much like eBay has (except those eBay customers are supposed to pay their own taxes on any items they sell to people out of state, but rarely happens).

One way or another Amazon will find a way to be cheaper to keep their loyal customer base. Even if it means dropping their own commission slightly to compensate.

[snakeair]

Originally Posted by iPad

It's a long time due... There is still plenty of sites out there offering products at cheap prices without the sales tax as well.

Amazon has owned the market for a long time because it's had the ability to wipe sales tax from items, much like eBay has (except those eBay customers are supposed to pay their own taxes on any items they sell to people out of state, but rarely happens).

One way or another Amazon will find a way to be cheaper to keep their loyal customer base. Even if it means dropping their own commission slightly to compensate.

I totally agree with your last statement.

There are people who make a living from promoting amazon products and have many websites (Niche ones) that they run. These are the folks who would be upset if they find out there commission's are cut down a lot.

Amazon saw this coming eventually and most of the amazon affiliate marketers should of known that this day would come and I hope they did prepare themselves for the day.

[Loridori4]

God I wish they would lower their commissions! Crazy how much they keep. 3k in sales last month and they keep 1k.
They are trying to pinch pennies by making sellers split up shipments to 3 different warehouses. PITA. But that's life.

[steiner]

I believe that they are planning to tax all online sites...not just Amazon. They just needed to take down Amazon since it's the biggest dog.Once they go down, there is no way the rest of the smaller online outfits can say no.

[Davao.hotels]

Yes, that's true. It was a good long two-decade tax-free ecommerce, and all these changes make me dislike the government a little bit too much.

[Jim Gillum]

Originally Posted by Davao.hotels

Yes, that's true. It was a good long two-decade tax-free ecommerce, and all these changes make me dislike the government a little bit too much.

Will these effect you at home...Davao City.... Philippines...?