Memo to Amazon: Pay the Sales Tax & Put Everyone Else in E-Commerce Six Feet Under

We revere Amazon, and generally try not to give other companies advice. But does anyone know why Amazon doesn’t give up the state sales-tax fight and station its monstrous fulfillment space-ships over every major American city? Benefits:

  1. Deliver everything same-day including groceries the way it does here in Seattle
  2. Go after UPS, using its analytical super-powers to banish left turns
  3. Hire a national salesforce for Amazon Web Services, to help the folks wearing head-sets in south Lake Union beat Microsoft & Google
  4. Restore profitable, risk-free affiliate marketing partnerships with folks in 100 cities
  5. Rent books & take out Chegg, which requires a local presence
  6. And go into a dozen other businesses it has passed on to avoid being local

Cost:  8% – 10%, paid by your customers, to build schools, parks and roads.

Amazon’s operations people are total beasts, and its insistence on remaining Seattle-bound for tax purposes is the chain holding ‘em back. Pay the tax! Unleash the hounds! The day Amazon concedes this issue will hereafter be remembered as its independence day.

Discussion

  • http://twitter.com/chrisamccoy Chris McCoy

    Nice post Glenn, helps me understand the issue a bit better.

    I posed a question on Quora that's starting to get some traction: http://www.quora.com/Is-Amazon

    Your post definitely helps it make sense to me. Thanks.

    • http://blog.redfin.com GlennKelman

      Great conversation on Quora too Chris… thanks for linking!

  • http://dannyman.toldme.com/ Daniel Howard

    I'm an Amazon.com Fan-boy but … really, this childish approach to paying taxes is a big disappointment.

    • http://blog.redfin.com GlennKelman

      Totally agree Daniel. It's not just disappointing, it's counterproductive.

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