Best Buy Online Sales Rise Due to Amazon Tax
Best Buy and other retailers may profit at the expense of Amazon.
Online shoppers across California and Pennsylvania all despaired at the news that Amazon was to be levying a sales tax down on their purchases in September 2012. No doubt many of them immediately sought out cheaper, tax-free alternatives to the popular online shopping service.
In fact, Best Buy may be one of the retailers enjoying the luxury of increased business at the expense of Amazon. "In California, Texas and Pennsylvania where Amazon.com recently started collecting tax, it is very early, but Best Buy has seen a 4 to 6 percent increase in online sales observed in aggregate versus the rest of the chain," stated Best Buy spokeswoman Amy von Walter to Reuters, "While some people may still prefer to shop online, the sales tax parity has shown that people will shift their buying habits."
Previously, Amazon had been accused of having an unfair advantage over physical retailers, because it didn't require customers to pay sales tax. That's slowly been changing across the United States, as state legislatures have passed laws requiring the online retailer to levy sales taxes in hopes of helping the ailing economy.
Best Buy's better fortunes have caused its shares to rise, which closed 5 percent higher on Thursday. However, according to Kantar Retail Vice President of Digital Retail Research Anne Zybowski, this trend is something that will only be confined to more expensive areas of purchase, such as consumer electronics. "Particularly in consumer electronics, any narrowing of Amazon's price advantage at the margin is important because Best Buy brings service and other shopper benefits to the category," she said.
"I don't think retailers should get too excited.
"Best Buy results are isolated to consumer electronics. Once you start getting over the $100 purchase price level, the tax matters.
"If this had happened to Amazon when they were just a bookseller years ago, they may not be as big as they are now."
Still, the increases that other companies are going to experience are probably going to be marginal, as Amazon's garnered plenty of loyal customers over the years with its good customer service, low prices, and fast shipping. Its Amazon Prime deal for $79 a year with video streaming and free two day shipping doesn't hurt either.
No taxes for you? Yes
No taxes for residents of California? Not so much. Newegg charges sales tax for customers in California(and possibly NJ/TN, not 100% on these 2)
book at retail, 30-50$
book on amazon, 8-20$ cheaper, and thats new prices, you willing to go used and its up to 95% cheaper.
thats amazons strong suit, being so cheap that even when sales tax is applied they are the cheapest.
at the same time, i think the way sales tax is applied is wrong.
the items cost should have sales tax included, not being slapped in the face later on at checkout with what, 1-11.5% more cost added onto whatever it is.
i dont even believe we should have a sales tax considering that some states dont.
Sales taxes are for YOUR state's spending on YOUR state's programs.
Hate sales tax? Start a campaign to have them raise your state income and property taxes instead. The money is going to come from somewhere.
Or get them to cut spending on worthless programs (cough *California* cough). Its your state's budget, your problem. You don't like something then change it.
Amazon has offices and warehouses in California. Its not interstate commerce. If you don't wanna pay for the dumb stuff California spends money on, some of which I am sure is on you. Then don't live there or fix your state
Go into Best Buy or Frys, look at device, use Amazon Barcode scanner on phone, purchase it from Amazon, leave store empty handed, having purchased a better deal.
honestly i want a flat tax across the board with no deductions of any kind. i hate the current tax code that's in place where no one can really speak out against it in fear that they didnt pay their due. the government really wants to shut you up, that's how they can do it because i guarantee everyone in this country didnt pay the right amount somewhere in the 1000+ pages of tax code laws.
we should only be taxed once for the purpose of raising funds, anything more than that is corruption (think vice taxes, or deductions you get for being married or having kids)
we should only be taxed once for the purpose of raising funds, anything more than that is corruption (think vice taxes, or deductions you get for being married or having kids)
That's entirely my point. Petition your state to have a flat tax if that's what you want. Elect people who support that. Do something about it.
Your never going to get rid of state taxes though, they will always be separate from federal by the design of our country, and you can't complain that someone in another state gets taxed less or more on a state level, or taxed with a different method. The people of the state have the right to choose how their state spends state money and how that money is collected. And sales taxes are ONLY state taxes.
Are you getting paid by best buy?
So amazon will just take over the internet retail world is that what you are saying? lol Amazon is one of many upon many sucessful online retail stores on the interent. So no amazon is some giant threat to online retails stores liek you want to make it out to be or else places like newegg would have fallen years ago and last time i check newegg is highly sucessful.
oh yes because best buy is the only place that sells electronics and or games at their store. lol Lets see there is Fry's, HH Greg, Stamples, Office Depot, Office Max, Walmart, Game Stop, Target etc....
Best Buy is a good store? is that the only store you ever been to in your life that sells eltronics? lol Best Buy is a rip off i can go to Fry's for example and buy the same electronic device cheaper. You really are clueless aren't you?
It's called a fat bloated greedy government that has become a leech on freedom everywhere.
+1
If i was force to any brick store, it would be Microcenter. Not best buy.
If you have one near you, you enjoy the benefits of getting an core i3/5/7 alot cheaper than anywhere else, and there prices for the other stuff are comparable to others.
Bestbuy, most stuff i could get there (electronic wise) is way over priced and can get it cheaper else where.