Amazon Revenue Down After Imposing Sales Tax

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It looks like Amazon's bottom line is taking a hit after the company started collecting sales tax in some states.

Amazon's sales are taking a hit in states that have recently started making the company pay taxes. New research out of Ohio State University found that Amazon shoppers reduced their spending by 10% in states where the company has had to start charging sales tax.
 
Yep. New York here and I've reduced my spending on some of the more expensive items due to the taxes. For example, bought a PS4 a Newegg for a flat 399.99 whereas it would have cost me 434.41 on Amazon. No thanks.
 
What did they think was going to happen?

Torn on this because on the one hand, they are really just helping people obey the law and not "lie" on their tax returns. But on the other hand, if you buy $5000 worth of stuff a year, it's an extra $300 in added cost (6% tax in my state).
 
AMAZON PRO TIP: There's a loophole! In the price area, typically near an image of the item, you see "ships from... sold by...". If it's not sold by Amazon, you're probably not going to pay sales tax on it. It can even ship from Amazon, but as long as it's not sold by them, you don't have to pay sales tax (unless maybe the seller is in your state).
 
AMAZON PRO TIP: There's a loophole! In the price area, typically near an image of the item, you see "ships from... sold by...". If it's not sold by Amazon, you're probably not going to pay sales tax on it. It can even ship from Amazon, but as long as it's not sold by them, you don't have to pay sales tax (unless maybe the seller is in your state).

Good tip, but typically the other sellers charge a lot of shipping, so Amazon is still cheaper with tax.
 
Even with sales tax, my Amazon Prime shipping savings still makes Amazon the only smart place to buy pretty much anything. It's a rare exception I go elsewhere for online purchases now.
 
9.5 for me. I still love Amazon and Im a prime member. I just did a new build and saved over 150 bucks buying from the egg.
 
AMAZON PRO TIP: There's a loophole! In the price area, typically near an image of the item, you see "ships from... sold by...". If it's not sold by Amazon, you're probably not going to pay sales tax on it. It can even ship from Amazon, but as long as it's not sold by them, you don't have to pay sales tax (unless maybe the seller is in your state).

If a company holds a physical presence in the state they are technically required to charge sales tax. A distribution center can be considered a presence, and they basically kills a prime membership (when it comes to taxes), even with your "loophole."
 
I've been buying more shit from new york since the amazon tax.

Last thing I bought was at amazon was a laptop in 2012.
 
Im in a state where Amazon charges tax.
I just built a new m-ITX computer from the ground up.
I compared Amazon, newegg, and Tiger-Direct.
Items plus tax still beat items plus shipping.
I even tried to do the premium shopping and that shopper thing on the egg, not all the stuff qualified.

Amazon was still the cheapest and since I have prime, guaranteed 2 days.
 
AMAZON PRO TIP: There's a loophole! In the price area, typically near an image of the item, you see "ships from... sold by...". If it's not sold by Amazon, you're probably not going to pay sales tax on it. It can even ship from Amazon, but as long as it's not sold by them, you don't have to pay sales tax (unless maybe the seller is in your state).

True.....but the partner may not qualify for prime....so you end up paying shipping.
Sometimes you win and most times it's about equal to taxes.
 
Brick-and-mortar retailers, however, saw only a 2% boost in purchases in states with an online sales tax.

Nelson_Ha-Ha.jpg
 
While my spending hasn't really decreased all that much. I did cancel my Prime membership. I just don't have to have whatever I ordered arrive in 2 days. Even then most things still take longer than two days. For example. I made three separate orders back on the 19th (I cancelled my prime membership today) and I still have not received my items. The expected delivery date is tomorrow Wednesday the 23th which is 4 days after I placed my order. Had I ordered it regular shipping I would have received it around the same time. Maybe a day later. Big deal. The shipping would have been free anyway. I also do not ever watch anything off the Prime Instant Videos.

I do have some subscribe and save items that I get monthly. I still get my 5% and 15% discount on those items.
 
It's 2 business days - Saturday and Sunday don't count. I would have thought this was obvious. Seems like a silly thing to complain about.
 
You can still find a lot of stuff cheaper on Amazon even if you have to pay tax, and it's more convenient than trying to chase it down locally (where you have to pay tax anyway).

Prime was great when we were doing a lot of stuff around the house and constantly ordering things we needed fast, but let it lapse. Now I've really dialed down my spending. After they raised the minimum for free shipping from $25 to $35, I think even harder about whether I really need something.

With books, I've found Amazon usually offers the same books from third-party sellers. Even with $4 shipping, they can come out the same/less than the Prime price but you don't have to meet a minimum purchase. Many used books are almost brand new, so you can save a lot. Some of these third-party sellers are from other states and don't collect sales tax. Some are even non-profits... it's nice to know you're helping a Goodwill store. :)
 
Headline: Some company uses legal loopholes
Comments: Fuck that company

Headline: Amazon charges tax
Comments: Fuck buying from them, I can get it cheaper elsewhere.

Funny part though is the loopholes are at least legal.
 
It's 2 business days - Saturday and Sunday don't count. I would have thought this was obvious. Seems like a silly thing to complain about.

That's not the only time it happens. My membership should have been cancelled/over back in Feb. of this year, but Amazon kept giving me an additional month because items I've ordered took longer than two business days.

With that being said. Monday is one business day. Tuesday is the second business day. I am expected to receive my items on the third business day, Wednesday. Despite ordering the items before Monday.
 
Brick-and-mortar retailers, however, saw only a 2% boost in purchases in states with an online sales tax.

So the shoppers did like me and order from other companies that don't charge a sales tax or look for links on Amazon without a sales tax.
 
I buy more in California now that the shipping is crazy fast and they have lockers for returns.
 
Initially I was buying much less since with the additional sales tax (7.75%) I was able to find better deals elsewhere.
However, the last few months I've bought several items from Amazon because even with sales tax, Amazon's prices have been better, plus the items came with free shipping.

So is it the drop in sales, or lower sales prices that are causing the hit to their bottom line?
 
Clearly this can be solved with really fast supersonic drones. Then they can park offshore and get the goods to you.
 
You want to buy a $500 video card and then you add the 30-40 dollar tax, it just ruins the deal. Even for less expensive items. Why buy from Amazon (if you are going to pay tax) when you can buy from an out of state store and not pay tax?

The goal is to save as much money as possible. Corporations, like Apple, don't pay many taxes in the USA. They use trickery with off shore pseudo companies to save money. Why shouldn't the regular hard working person save some money?

Newegg puts on these extravagant sales, sometimes for certain items, but if you live in a state where Newegg charges tax, forget about it. The deal is garbage. The extra money spent on tax could have been used to buy a coffee or some other item.

But is the lack of sales, because of tax, really hurting Amazon? Do a google search for: amazon warehouse incentives

In the states where Amazon is building warehouses the states are giving them incentives to come and build. Building the warehouse in certain areas qualify for reduced tax burden, and other incentives. The state reps want to show the people they are actively getting jobs for their people, so Amazon gets incentives to go.
 
Fulfilled by an out of state seller ftw...

Fwiw you still owe use tax... and they have to collect sales tax if they have a nexus in the state (at least here in WA) which does not necessarily require a physical presence.
 
Nobody likes paying taxes. No sales tax though is an unfair advantage for the etailers relative to the B&M stores. They won't lose your business (the etailers) they'll just have to reduce prices to keep the deal sweeter through them than your local shop. I'm sure most of us would just as soon buy from a local store than online if the price was the same. Hell, I'll even allow the local retailer ~10% more if they offer outstanding service (no restocking fees, the store handles the RMA, over the counter exchange policies for a reasonable period. etc...). Nothing is free.
 
Nobody likes paying taxes. No sales tax though is an unfair advantage for the etailers relative to the B&M stores. They won't lose your business (the etailers) they'll just have to reduce prices to keep the deal sweeter through them than your local shop. I'm sure most of us would just as soon buy from a local store than online if the price was the same. Hell, I'll even allow the local retailer ~10% more if they offer outstanding service (no restocking fees, the store handles the RMA, over the counter exchange policies for a reasonable period. etc...). Nothing is free.

I have to drive an hour to buy a physical copy of a video game. I have to drive an additional 45 mins to see a Best Buy. I just look on Amazon, Ebay, NewEgg, TigerDirect, etc first.
 
People initially probably stopped buying out of anger. Typical Americans punishing a company for the actions of their government.
 
Brick-and-mortar retailers, however, saw only a 2% boost in purchases in states with an online sales tax.

So the shoppers did like me and order from other companies that don't charge a sales tax or look for links on Amazon without a sales tax.


Actually, I've save money since Amazon started charging tax:

1. I no longer buy the cheap mp3 albums that are 3.99-5.00. Those used to be easy impulse buys but I've shut it down.

2. I've cut back my spending as a whole with Amazon and I've not put it anywhere else. It's not going to Best Buy or Target, or whatever, it's just staying in my pocket.

So thank you Amazon, for crossing that line and helping me reduce my spending overall:D
 
I usually don't shop at Amazon... in part because of them collecting sales tax since you can usually find stuff cheaper elsewhere, but also because they don't take paypal.
 
My Amazon purchase are way down. Specifically diapers (what did you expect, graphics cards?!?). I can get them locally for a lot cheaper. As for buying from other vendors via Amazon to avoid taxes? I've yet to have a good experience from any vendor that wasn't fulfilled by Amazon. They all remind me of eBay sellers...
 
Honestly the whole $25 to $35 for free shipping killed my buying more than the tax.
 
People initially probably stopped buying out of anger. Typical Americans punishing a company for the actions of their government.

Seriously. It is like people believe Amazon wants to charge sales tax... They are being forced to charge sales tax. They are also only charging the tax in states which are forcing them to charge it. So I would think people who have to pay that tax would be more up in arms over their state enforcing it. Because here is the rub, Amazon is not the last company they will go after for that tax, they will continue going after all the online retailers.
 
The HBO shows will appear 3 years after broadcast. I can buy the boxes before that. Not saying its bad, just saying it ain't that great.
 
I generally open a chat when the item is $100 or more. I tell them I can get the same item for the same price from newegg but minus the tax. I ask them if they can give me $5 or $10 off my order to compensate for the tax that I need to pay with them because "I want to support their business" and not newegg. This usually works for me.

I have a prime account so it makes more sense for me to order from Amazon..
 
I live in CA and I haven't changed my Amazon shopping habits since they started collecting sales tax at the time of purchase. Not only that, but getting things from Amazon is almost always faster and with less hassle. At least we know Amazon will pander to their customers, I'd gladly have that, in case something happens with my order, and know that they won't blame me for my order missing a part, or the package not being delivered properly.

Headline: Some company uses legal loopholes
Comments: Fuck that company

Headline: Amazon charges tax
Comments: Fuck buying from them, I can get it cheaper elsewhere.

Funny part though is the loopholes are at least legal.

ROFL, too true...
 
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