Recently California just passed a law that online retailers will have to charge state sales tax. Even though the sales tax has a negative impact, could Amazon turn this into a positive impact?
I think that there still is an advantage of using Amazon. As an Amazon customer I would rather use Amazon than one of their direct competitors like Wal-Mart, Target, Sears, Kmart, Best Buy, and others. I have always had great customer service with Amazon which I do not think that their competitors have. If Amazon can keep the low prices and even add same day delivery they will be made in the shade.
With the smaller e-retailers I believe that not having state sales taxes could have been one of the crucial benefits of doing business online. The costs of running a brick and mortar location are more expensive than doing it all on the internet. This could in the future can cause the demise of smaller online retailers.
But what could be next for Amazon? “Amazon hasn’t taken kindly to these efforts. It has filed numerous legal challenges, and fired all of its marketing affiliates in Colorado, North Carolina, Rhode Island, and California.” is taken from an article called “I Want It Today” from Slate.com. If these taxes start to be nationwide, I believe, that more challenges would arise.
But on the positive note, I believe that Amazon will be more efficient and convenient with more distribution centers. In years to come, same day shipping could be the new norm.
Did you know that Amazon currently offers self-service pick-up locations at 7-Eleven stores as well as grocery delivery trucks?
This could lead to more jobs. If Amazon does a service that does grocery delivery trucks in more areas I believe it will boost. In the northeast like New York City, they have multiple services that deliver. This could be one of the innovative ways Amazon could keep progressing.
Hopefully what Amazon will do next is expand Amazon Fresh. This is a grocery delivery service that is in Seattle. I read an article http://askville.amazon.com/amazon-fresh-service-reviews/AnswerViewer.do?requestId=5764044 and it had a great review from a very critical reporter. If Amazon keeps up the reliability and swiftness it already has it could go into a nationwide service. Opening more distribution centers for the nonperishable grocery and using local vendors for perishable and even a boutique experience. With the health craze, having local and organic foods can make a huge rivalry to local grocery store.