Close Menu
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
Facebook X (Twitter) Instagram
Friday, May 9
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook X (Twitter) Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
WholesaleCentral.com Blog
Home»For Buyers»Ecommerce»Winning Worth the Payout for Amazon
Ecommerce

Winning Worth the Payout for Amazon

PublisherBy PublisherSeptember 1, 2011Updated:October 7, 20223 Mins Read
Facebook Twitter Email
ArticleImg_110x150_Change.jpg
Share
Facebook Twitter Email

Online Tax CollectionFor nearly a decade, local brick and mortar stores across the nation have been fighting to level the playing field with Amazon, the headlining online retailer who has decided to forgo the collection of state sales tax. In a united effort California became the seventh state to adopt sale tax fairness legislation in July. According to Institute for Local Self-Reliance advocate, Stacy Mitchell, “Amazon’s physical presence has spread to more than a dozen states, where it has built warehouses and other facilities that would normally trigger an obligation to collect sales tax.” Going to great lengths to maintain a tax-free advantage by structuring its facilities as separate companies or lobbying state legislatures, Amazon isn’t going to go down without a fight. California’s new law led to the firing of 10,000 or so companies and individuals who earn commissions for using their blogs and websites to funnel sales to Amazon. “The move seemed motivated purely by spite, since it will not alter Amazon’s obligation to collect California’s 7.25 percent sales tax,” notes Mitchell.

Amazon Spending Big Bucks for a Big Win?

The firings were nothing more than a distraction, however, as Amazon planted real plans for disaster. With a referendum scheduled for June 2012 to overturn the new Internet sales tax law, the online retailer has already spent $5.25 million in campaigning, a scare tactic against legislators and the retailers favoring and financing the tax law and its enforcement. The New York Times notes “Political observers say that by spending more, earlier, Amazon is showing potential opponents that its ultimate campaign spending could soar even higher.” And while a close eye is on Amazon’s campaign spending and its impact on deep-pocketed retailers like Walmart who are in favor of the tax law, legislators are faced with another concern in the effort to make Amazon pay.

There is fear that the vote and Amazon’s financial fate could lay in the hands of the public. “Loni Hancock, a state senator who wrote the law Amazon is trying to overturn, has begun a quixotic quest to keep California voters from weighing in on whether online retailers should be required to collect sales tax. She pushed a new bill through a legislative committee that election law experts said could prevent Amazon from putting a referendum on tax collection before the voters,” The New York Times reports. It is feared voters don’t know the detrimental effects the state and the public would feel if the law were overturned. “It means a lot of teacher that aren’t in classrooms and police that aren’t on the streets,” Hancock emphasizes. Online retailers such as Amazon have been flying under the radar in regards to the collection of state sales tax for too long, relying on the upstanding honesty of online shoppers to declare taxable purchases when it comes time to file.

 

To read more about Amazon’s fight against Internet sales tax, click HERE.

taxes
Share. Facebook Twitter Email
Previous ArticleRetail Career Promotions
Next Article Discount Wholesalers: Best Practices in the Warehouse and Online

Related Posts

How to Sell Without Inventory: Innovative Approaches to E-Commerce and Retail

October 29, 2024

5 Essential Tax Season Preparation Tips

January 24, 2024

7 Tips for Wholesale Inventory Management

January 23, 2024
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

how-to
Wholesale 101 for Buyers

Amazon Return Pallets For Sale: How to Profit

11 Mins ReadUpdated:August 9, 2024

A big trend among some online sellers is buying Amazon return pallets and overstock and…

Retail News

5 Essential Tax Season Preparation Tips

10 Mins ReadUpdated:August 8, 2024

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Ecommerce

7 Steps to Create Successful Shipping for Your Business

6 Mins ReadUpdated:August 8, 2024

by Sidney Karanja Today’s business environment is more globalized and complex than ever before. In…

Product News

Overstock Liquidations

6 Mins ReadUpdated:August 9, 2024

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Latest Posts

Crafting a Marketing Strategy for Electronics Retailers

January 21, 2025

Effective Digital Marketing Strategies for Health & Wellness Brands

January 21, 2025

Mastering Beauty Ads: 10 Strategies for Engaging Your Audience | Blog.Wholesalecentrl.com 

January 21, 2025

Jewelry Marketing Strategies: How to Attract Customers and Boost Sales in a Competitive Market

December 31, 2024

How to Open a Gift Shop: A Step-By-Step Guide

December 23, 2024

Online Marketing Calendar for 2025: Don’t Miss These Critical Dates

December 17, 2024
  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2025. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.