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I’m convinced this is a big part of Amazon’s rise to prominence. While they often had competitive pricing, they also had a built-in discount by not collecting s
by nirvdrum 3y ago
I’m convinced this is a big part of Amazon’s rise to prominence. While they often had competitive pricing, they also had a built-in discount by not collecting sales tax that brick and mortar stores with nexus could not avoid. And they fought hard against any changes to the status quo as it pertains to sales tax (at least until it became advantageous to do otherwise).
I’m fairly certain Amazon knew these consumers weren’t paying use tax instead. Local stores took a beating by having to play by rules that Amazon didn’t.
- Scoundreller 3y agoHeavily discounted shipping (media mail) also supported Amazon's initial rise. Funny how cheap shipping is coming full circle. By starting with books (and then CDs/DVDs), Jeff picked a good target: inventory that doesn't depreciate too fast, subsidized shipping, not needing to collect sales taxes up-front, high costs at b&m level, high value per weight/volume, popularity of carrying large inventory (books aren't too fungible) Much better than pets.com selling cat and dog food.
- kevin_thibedeau 3y agoMail order without nexus didn't charge tax either. The Internet didn't invent the the interstate commerce loophole.
- nirvdrum 3y agoIt didn’t, it just made it way easier to order from. And Amazon carried more inventory than most mail order catalogs. Subsidizing shipping helped a lot as well.