Amazon.com Changes The Game

[dennishoddy]

Also, my local Walmart wouldn't even match their own online price. This was on a $700 TV, and the online price was $30 or so cheaper. Are they really supposed to match Amazon.com but NOT Walmart.com? Pricematching is so nutty that I don't even mess with it anymore.

Walmart on one side of town won't price match with another walmart on the other side of town in the same city with the same SKU on the item.

 

[HMFIC]

If Amazon is going to collect the sales tax, then local and State governments would be a fool to not get on board with some way to make it easy. As it stands right now, I'm sure that they don't get all of what they are due on the "use tax" side of things.

I believe that the added tax factor online will only benefit local retailers. The REAL thing that kills local retailers is more and more people deciding for whatever reason to shop online. That can be for a myriad of reasons, none of which are valid in this article.

Amazon's free shipping is "super saver" and slow by comparison to other methods... it's not to your door in 4 hours. So that argument in the article is just invalid. The premise that Amazon will open distribution centers closer to metro areas in states that they agree to collect tax does somewhat help the issue, but they will not be able to stock every single center with every single item either.

Amazon will not replace brick and mortar stores. They may cut into market share some more for overpriced big box outlets on items which fit the particular mold (like electronics), but it's not realistic to think that we're all going to start clicking to buy just because we might get something a little faster and also have to pay direct tax at the time of purchase on it now.

Typically what I see are buyers that either are having a hard time finding certain items in local stores -or- they live in either rural areas where it's quite a drive to the big store -or- they live in a major big tall building metro city type environment and they don't have a Wal-Mart on every corner anyway (or even a car to transport some items).


Ps. I've been an Amazon featured seller for almost 8 years now, so there ya go.

 

[HMFIC]

True. I don't think amazon accepts welfare cards or food stamps.

LOL! GREAT point Dennis.

 

[Werewolf]

Still, if this drives retailers like BB out of business how are you going to decide which TV to buy without looking at it?
You really going to plunk down $1800 for a TV that you've never seen the picture on?

Consumer reviews is the answer.

That said: When I shop Best Buy I read the customer reviews and then immediately go read the customer reviews of the same product at Amazon. Usually there isn't much of a disconnect but occasionally there is in which case I accept the Amazon consensus. I can't prove it but my gut tells me that BB kills not so good reviews of product they really want to move.

 

[338Shooter]

If it sucks, Amazon will pay for you to ship it back to them.

 

[HMFIC]

Also... some of you may not realize this, but when an online sale within Oklahoma occurs, the retailer has to look up the exact tax due by the customers address so that the precise amount of tax can be collected and then turned in with the detailed information to allow the tax authority to split those funds between the state, county and city governments.

It is, to say the least, a pain the arse for retailers to do this and without some better system in place, it prohibits retailers from easily collecting accurate tax up front. Amazon currently has no way to do this, primarily because the state of Oklahoma hasn't given them any way to do it. So for those wondering about why the article talks about Amazon wanting states to provide a consistent and easy-to-implement way to collect taxes, that is what they are talking about. It could be as simple as someone in the tax authority updating the information that they already have in an electronic interface to allow retailers to port that information over and keep whatever ecommerce system they use updated.

Another example of government being it's own worst enemy... all they have to do is make it easy and they will reap the benefit of having taxes collected and forwarded to them up front.

 

[Lurker66]

It wont be long and we can cut out all middle men and just order direct from china or india.

We have gone from a producing nation to a consumer only nation. The only jobs we will have is service type jobs. And the lower class types will be jobless or reduced to migrant workers or else rely on government programs.

 

[bettingpython]

Also... some of you may not realize this, but when an online sale within Oklahoma occurs, the retailer has to look up the exact tax due by the customers address so that the precise amount of tax can be collected and then turned in with the detailed information to allow the tax authority to split those funds between the state, county and city governments.

It is, to say the least, a pain the arse for retailers to do this and without some better system in place, it prohibits retailers from easily collecting accurate tax up front. Amazon currently has no way to do this, primarily because the state of Oklahoma hasn't given them any way to do it. So for those wondering about why the article talks about Amazon wanting states to provide a consistent and easy-to-implement way to collect taxes, that is what they are talking about. It could be as simple as someone in the tax authority updating the information that they already have in an electronic interface to allow retailers to port that information over and keep whatever ecommerce system they use updated.

Another example of government being it's own worst enemy... all they have to do is make it easy and they will reap the benefit of having taxes collected and forwarded to them up front.

You can already get the Oklahoma sales tax database. Write up a quick XML schema and load it into the database engine of your choice.

http://www.oktax.onenet.net/pod/retven.htm#10

 

[HMFIC]

You can already get the Oklahoma sales tax database. Write up a quick XML schema and load it into the database engine of your choice.

http://www.oktax.onenet.net/pod/retven.htm#10

Sure... then I just have to get the state to notify me every time they make a change. I don't think anything they would currently provide would allow me to just cross reference an address. Their current system allows a lookup and that is backed by USPS data or ??? I suppose I could go lookup the ZIP + 4 like I do now and then enter it in, but that kind of defeats the purpose too.

Then I'd just have to find some way to interface all of that with whatever eCommerce software I'm using which doesn't have any provision in it to do so...

Amazon I'm sure could pay a bunch of people to do all of this and monitor the OK state database for changes too, but that's my point... the state could make it much simpler and reap the benefit while stimulating easier commerce and making it cost effective on small businesses.

 

[chr_edw]

Thankfully we are still under 500,000 in annual sales so it won't affect us for now. In another year or so it will be a huge PITA. Thankfully we sell somewhat of a niche product line and are not greatly affected by amazon. We sold on amazon as a merchant a few years ago, but have since moved on because of the seller fee's. That and it was horrible for cash flow. You have to ship out quick and can wait up to two weeks to get your pay out.

I have been an amazon prime customer for years and love it. We normally order several times a week. I would much rather order online and have it in 1-2 days than driving down 71st through the traffic to get it. All while paying less. I don't think we bought a single Christmas present last year that was not online (besides a gun for me).