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The biggest sales uptick -- 61 percent for big-ticket items -- went to merchants that use Amazon Marketplace...That means Amazon still indirectly benefits, sinc
by minouye 12y ago
The biggest sales uptick -- 61 percent for big-ticket items -- went to merchants that use Amazon Marketplace...That means Amazon still indirectly benefits, since it collects a fee from merchants on its marketplace.
Not sure why they buried this at the end of the article. Amazon can still attract price-conscious shoppers by funneling them to marketplace sellers that don't collect sales tax, and can now invest in more fulfillment centers and other initiatives that require nexus (Amazon Fresh, etc.)
- justinsb 12y agoThis does seem the most important conclusion. What's likely happening is Amazon is no longer showing themselves as the top seller in some cases. Consumers are still buying on Amazon, but from a different seller, who does not charge sales tax. What would be impressive is if Amazon made an (algorithmic) judgment call, and showed price-sensitive shoppers that would otherwise go elsewhere the cheaper seller, and shoppers that would tolerate the tax the (presumably higher profit) Amazon offering.
- robryan 12y agoThey already do that with fulfillment by amazon. There is a certain price difference for which Amazon will show you that fulfilled product vs a cheaper marketplace offer with slower fulfillment/ shipping.
- jnbiche 12y agoNow, they need to offer marketplace sellers some type of 2nd-day delivery service at a reasonable price. Having Amazon Prime and knowing I'll always get the item on the second shipping day means that I'll chose the Prime item even if the marketplace seller is cheaper.