Amazon beat brick and mortar retail, but it was not a fair fight. Here's how they did it: 1. They didn't charge sales tax while brick and mortar retail did. Amazon argued that they were not the responsible party for the collection of sales tax. Stupid government, perhaps,
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distracted by the fulfillment centers Amazon was building in their states, agreed. This was colossally stupid. It makes zero sense to ask small business 3rd party merchants on Amazon to collect and remit sales tax to 40+ different states. It's an accounting nightmare from hell.
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Replying to @Molson_Hart
So far as I remember of the before-internet times, ordering things from out-of-state through a catalog that came in the mail did not usually involve sales tax either. I specifically remember ordering stuff from LL Bean sucked, because they did charge ME sales tax
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That's right, but what Amazon did was collect sales tax on 40% of their catalog while they didn't on the other 60%. What catalogs did was fine when they accounted for <1% of retail sales. Amazon is a giant.
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