Wednesday, September 12, 2012

Amazon Response to State Sales Tax; New Warehouses

The building of new warehouses marks the relentless quest by the online mall Amazon.com to become all things to all shoppers.
A million-square-foot warehouse stocking razor blades and books, diapers and dog food will soon rise on this spot, less than a mile from the highway that will deliver these and just about every other product imaginable to customers 85 miles away in San Francisco.
A similar distribution center is being built on the outskirts of Los Angeles. Others are under way in Indiana, New Jersey, South Carolina, Tennessee and Virginia.
This multibillion-dollar building frenzy comes as Amazon is about to lose perhaps its biggest competitive edge — that the vast majority of its customers do not pay sales tax. After negotiations with lawmakers, the company is beginning to collect taxes in California, Texas, Pennsylvania and other states. But Amazon hopes that the warehouses will allow it to provide better service, giving it the ability to up-end the retailing industry in an entirely new way.