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> I think the sheer size of Amazon has allowed them to build a really pro-consumer platform I thought it is the other way around. Because they are really a pro
by tapanjk 4y ago
> I think the sheer size of Amazon has allowed them to build a really pro-consumer platform
I thought it is the other way around. Because they are really a pro-consumer platform, they became this big.
- lotsofpulp 4y agoGreat execution of customer service (before they abandoned their retail business to 3rd party merchants and commingled garbage) was certainly a big factor in their success, but so was taking advantage of the fact that people would not pay the use tax they owed for purchasing items without sales tax from out of state sellers. This effectively gave Amazon a ~7% pricing advantage against businesses with physical presence in a state, and Bezos has mentioned it was a factor in choosing to be based in Washington rather than California, so as to not have to collect and remit sales tax to California’s 40M residents. The Supreme Court changed this in Jun 2018 when it ruled that states could collect sales taxes from sellers without physical presence in the state. https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc.