Amazon Opening Retail Stores?

[HardOCP News]

Rumor has it that Amazon is secretly looking for ideal locations for retail outlets. I don't know, that would actually be nice to have a retail outlet near you so you order online and pick up in the store. What do you think, should Amazon open retail outlets?

One source familiar with Amazon’s proposals said: “When Amazon was just selling books and CDs that fitted easily through the letterbox it was fine to be a web-only business, but now it has branched out into everything from children’s bikes to electricals it believes it could boost sales by having stores that offer a collection point for shoppers. It will probably be an Argos-style operation.”

 

[Phelptwan]

That would me taxes in every state they have a retail outlet.

 

[PyroHoltz]

That would me taxes in every state they have a retail outlet.

An etailer is required to charge sales tax in any state that said etailer does business. So, for example if an etailer has distribution location in your state but no store location to purchase products, you'll still be charged sales tax. NewEgg is a perfect example of this for California, Texas (if they have sales tax, I'm not sure), Tennessee, New Jersey and any other states they ship from.

I think this would be a great idea for Amazon so long as you had a location near you.

 

[candy76man]

weird, I was just telling my wife maybe three days ago that I wondered why Amazon hasn't tried to go brick and morter yet.

AT any rate, I think they should stay online only, they do well that way and physical stores could add billions in overhead to the operation.

 

[Marlfox]

That would me taxes in every state they have a retail outlet.

This. Amazon I love ye but stay the hell out of my state with your retail stores

 

[tgabe213]

And, in reality, wouldn't these just become the same as say a supercenter walmart? They have everything?

 

[Ryokurin]

Unlikely as really the only two standing are Barnes and Noble and Books a Million. Borders has basically been braindead for the past two years and has been teetering towards bankruptcy forever. We don't need a #4 and there's plenty of reasons why no one has saved Borders.

 

[mcravenufo]

I already pay taxes when I buy from Amazon because I live in Washington where they have an office.

 

[sirmonkey1985]

An etailer is required to charge sales tax in any state that said etailer does business. So, for example if an etailer has distribution location in your state but no store location to purchase products, you'll still be charged sales tax. NewEgg is a perfect example of this for California, Texas (if they have sales tax, I'm not sure), Tennessee, New Jersey and any other states they ship from.

I think this would be a great idea for Amazon so long as you had a location near you.

its controlled by the state and whether or not they have to charge taxes..

honestly id like to see an amazon store.. i want to see some one compete with bestbuy, Fry's, microcenter in the retail store market.. get some price competitions going..

 

[Ihaveworms]

I don't want the taxes! TN sales tax sucks me dry .

 

[weasel2htm]

I bet there are a ton of landlords just dying to lease out former Circuit City locations

 

[lord_farfig]

I bet there are a ton of landlords just dying to lease out former Circuit City locations

Yes... I was thinking the exact same thing.

However, not all of the stores are in "ideal" locations.

 

[Bone_Enterprise]

Really would not matter to me if they did or not, Amazon Prime accounts kick ass with the free 2nd day shipping and next day shipping at $2.99 an item.

 

[robble]

Stupid idea. Tax is part of the savings.

 

[toy4x4]

Yes. No retail in my state please.

 

[TechLarry]

Yep. Don't want it, don't need it. I can get shipped overnight for $3.99 as a prime member.

That would me taxes in every state they have a retail outlet.

 

[Q-BZ]

Someone knows more than I do on this obviously but I just don't see much, if any upside, here for Amazon themselves and I see a ton of extra expenses and logistical headaches.

I hope they don't do this and especially in my already overtaxed state of Ohio.

 

[kush]

Good for me (maybe?) if Amazon goes this route. I've had some good experiences with them, and will continue to do so. I understand how etailers have to tax based on B&M status, distribution centers and whatnot, but for some reason this doesn't get me dinged on Amazon? ie: I live in SoCal, and the other week I got in on the $120 off on 10xFox TV DVD sets. They were shipped out of Santa Fe Springs (, CA), yet no state sales rape of 9.75% (although South Gate and Pico Rivera=10.5%!).... I ain't complaining, just don't understand how Amazon does it.

I would be fully supportive of an Amazon retail presence, but not if it turns them into a taxing etailer/retailer....

 

[amd_ftw]

does that mean that i can unload my crap at their retail stores and have them sell it for me?

 

[beowulf7]

Yes. No retail in my state please.

I second this motion.

 

[Saturn_V]

Thirded. 3+ years on Amazon Prime.Apart from having a B&M place to pick up your shipments, I don't see the benefit (for me)

But if Amazon-branded devices (like the Kindle) are going to take off, they need retail storefronts. Most people still won't purchase anything electronic without seeing it up close and personal first.

 

[Parmenides]

This would be great, but I wouldn't want to pay state tax either. Hmm.... maybe if Amazon would have vendor zeppelins that would fly around from state to state.... nevermand.... the taxman would still get his.

 

[htpc_user]

I see it ending up like Circuit City.

 

[nilepez]

An etailer is required to charge sales tax in any state that said etailer does business. So, for example if an etailer has distribution location in your state but no store location to purchase products, you'll still be charged sales tax. NewEgg is a perfect example of this for California, Texas (if they have sales tax, I'm not sure), Tennessee, New Jersey and any other states they ship from.

I think this would be a great idea for Amazon so long as you had a location near you.

They don't charge in TX. I have no idea if they have a warehouse there or not. There is a warehouse north of tx that several companies use to drop ship items, but it's not owned by Newegg. I know buy.com has used it and others have as well.

Regardless, I'm with the others in that I have no desire for a local Amazon.com.

 

[finalgt]

Borders.com used to just simply be a front for Amazon until a couple years back when they killed the partnership, otherwise I'd think that Amazon could just piggyback onto Borders' existing B&M locations.

I don't see where the profit in this strategy is without a significant markup, though. The main reason Amazon has gained such a huge foothold is because by concentrating product in warehouses and dispersing it from there, then hitting huge economies of scale with their UPS account with as much as they ship, they've been able to seriously, seriously undercut Borders and B&N's pricing structure, which has to be higher just as a result of what it takes to continuously stock a large number of B&M locations.

Their bet, if they go ahead with this, is that a large number of consumers would be willing to pay a pretty significant convenience utility (of being able to go to a store and pick something up instead of paying and waiting for shipping) in the form of sales taxes, and higher prices. I doubt it.

 

[cocheese256]

The only advantage I see would be able to return items more easily. There are certain items that I pay extra for at Best Buy because I know that I can take it back pretty much hassle free.

 

[robble]

I can see how Amazon loses money on shipping though. I once paid about $3 to have an 11lb package shipped to me via 2nd day air fedex. Shipping is always great at amazon. I even bought my computer upgrade stuff from there because of the dirt cheap shipping.

 

[MavericK]

Correct me if I'm wrong, but isn't the reason that online-only businesses like Amazon can keep prices so low is that they don't have to maintain a retail storefront chain? This seems like it would defeat the purpose of Amazon.

If they could somehow do it and keep prices low, then more power to them, but I don't see that happening.

 

[CaliGirl]

I really hope this does not happen in CA. It will ruin my love for Amazon and all things tax-free.

 

[GoldenTiger]

Yep. Don't want it, don't need it. I can get shipped overnight for $3.99 as a prime member.

Yep, and tax-free!

 

[UnlimitedMP]

For me, the only appeal of amazon is the no tax on items

Buy a $50 item and save over $4 in taxes and it builds up.

 

[computer]

Please stay out of my state Amazon. I already pay enough taxes!

 

[GJSNeptune]

If they come to Ohio, I'm canceling my Amazon Prime.

 

[jvz555]

That would me taxes in every state they have a retail outlet.

but no shipping fees . Comes good in some items

 

[jvz555]

They don't charge in TX. I have no idea if they have a warehouse there or not. There is a warehouse north of tx that several companies use to drop ship items, but it's not owned by Newegg. I know buy.com has used it and others have as well.

Regardless, I'm with the others in that I have no desire for a local Amazon.com.

TX does charge taxes sir. 8.275% or so.

 

[Vaelin]

I really hope this does not happen in CA. It will ruin my love for Amazon and all things tax-free.

Well, the CA government is desperate for revenue and they have some of the most influential Federal representatives currently.

If Federal handouts don't fix things (and that never does) then they're going to soon look for more sources of revenue. I'd bet applying a 'use' tax on all goods purchased online regardless of the source will be one thing they'll do eventually. (enforcement will be done by federal congress under ISC jurisdiction)

Essentially, Amazon knows that someone will be trying hard to make it pay sales tax in every state in the future, so they might as well beat everyone to the punch by opening retail distribution locations.

This could be VERY valuable to the Amazon business model as it will make returns much easier. But how lucrative it turns out will have to be seen.

 

[Terry Olaes]

When I was in CA, I paid sales tax on my Amazon purchases. Here in TX, I don't pay any sales tax on Amazon stuff, even though they have a branded warehouse nearby in Grapevine. TX does have sales tax and some retailers charge it on online purchases (just bought something from Walgreens.com today and they charged tax).

Here's Amazon's sales tax policy.

But on topic, I wonder if it would be like Service Merchandise or Best? lol old school stores...

 

[robble]

This could be VERY valuable to the Amazon business model as it will make returns much easier..

other than having a good reputation I don't see how making returns easy is a good business model.

It's already pretty easy to do returns with amazon.

 

[dR.Jester]

Hell no to the idea. I like my orders to be TAX FREE!

 

[nilepez]

TX does charge taxes sir. 8.275% or so.

On Amazon and Newegg? If you meant for B&M purchases, I'm well aware of the high TX sales tax.