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Amazon.com (AMZN) denies media reports, says it has no plans to open brick-and-mortar stores -...

Amazon.com (AMZN) denies media reports, says it has no plans to open brick-and-mortar stores - anywhere.
Comments (6)
  • FocalPoint Analytics
    , contributor
    Comments (5754) | Send Message
     
    I would think opening up brick-and-mortar stores would have some tax ramifications... anyone have any thoughts on this?
    6 Dec 2009, 05:13 PM Reply Like
  • David White
    , contributor
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    Foolish to get away from a working model. A brick and mortar store couldn't possibly contain anywhere close to the variety of their online offerings. I can't see them doing it.
    6 Dec 2009, 05:33 PM Reply Like
  • Plasmo
    , contributor
    Comments (3) | Send Message
     
    I kinda like the idea. With good data modelling of what items are typically ordered by the surrounding region, a pick up facility/store could be a fix for the "gotta have it now" customers.

     

    Where I live, Virginia already requests a voluntary tax payment on goods purchased over the internet. Maybe Amazon will pick up some of the tab, due to the reduced shipping costs. This is probably wishful thinking :)

     

    I would think an easy location to return items to, would draw market share away from the internet vendors with punitive return policies. Maybe even a mobile pick up service that tweets it's location...
    6 Dec 2009, 09:42 PM Reply Like
  • Plasmo
    , contributor
    Comments (3) | Send Message
     
    I kinda like the idea. With good data modelling of what items are typically ordered by the surrounding region, a pick up facility/store could be a fix for the "gotta have it now" customers.

     

    Where I live, Virginia already requests a voluntary tax payment on goods purchased over the internet. Maybe Amazon will pick up some of the tab, due to the reduced shipping costs. This is probably wishful thinking :)

     

    I would think an easy location to return items to, would draw market share away from the internet vendors with punitive return policies. Maybe even a mobile pick up service that tweets it's location...
    6 Dec 2009, 09:43 PM Reply Like
  • Solange
    , contributor
    Comments (14) | Send Message
     
    Amazon is located in the state of Washington. The current base state of Washington sales tax rate is 6.5% and the state's code [Washington Administrative Code (WAC) 458-20-145] specifies that: "The correct sales tax rate and tax jurisdiction (location code) is determined by the location where the customer receives the merchandise or makes first use of retail services." Thus, if a person were to pick up a book at a "brick and mortar" store somewhere inside the state of Washington, that person would pay a minimum of 6.5% in sales tax (and, perhaps, as much as 9.5% in "unincorporated non-RTA King County" - i. e., Seattle and its environs). Moral of the story: If Amazon wants to "maximize its sales potential", then it should only think about opening up stores in states with no sales tax (i. e., Oregon, Alaska, Delaware, Montana and New Hampshire).

     

    On Dec 06 05:13 PM User 283977 wrote:

     

    > I would think opening up brick-and-mortar stores would have some
    > tax ramifications... anyone have any thoughts on this?
    7 Dec 2009, 07:33 AM Reply Like
  • Solange
    , contributor
    Comments (14) | Send Message
     
    The largest, independent, "brick and mortar" bookstore in the US is Powell's Books in Portland, Oregon. Oregon's lack of a sales tax is one of the reasons why this family-owned bookstore has been able to not only survive for the last 38 years, but even thrive, despite the fact that Amazon is headquartered less than 5 hours directly up I-5 from it. For more information, see: www.powells.com/
    7 Dec 2009, 07:39 AM Reply Like
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