Amazon collects taxes from online purchases

Amazon collects state taxes from online purchases

Amazon shoppers get ready to pay taxes from online purchases. Do you love buying your favorite items through websites vs. going to brick & mortar retailers?

The tax free online purchase party is about to end. Many states have lost billions in lost tax revenue from online purchases. The “use tax” many people are suppose to claim on their taxes obviously rarely gets collected on billions of online purchases.

Major changes to state tax laws will change online commerce forever. Score a small win for local retailers and big box retailers like Best Buy.

Amazon will combat this major disruption to their online business by locating distribution outlets in tax collecting states in order to deliver products and services to their consumers faster.

Same day delivery has been rumored as the next evolution to e commerce giants like Amazon, Wal-Mart and more.

Will Amazon customers pay $10+ in taxes or more on their $100 purchases?

Many consumers may opt to buy from:

  • Online retailer located not required to collect tax
  • Shop at local in-store retailers
  • Purchase from smaller online retail websites
  • Opt for new same day delivery services
  • ?

I love lower prices offered from online websites & convenience of delivery. Many savvy tech connected consumers are now using online websites, mobile apps to comparison shop prior making their purchases online. Where do you prefer to shop?

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Referenced external article & image:


We believe in inspiring others to deliver exceptional customer experiences - one story, one person and one relationship at a time. I enjoy advising clients on their digital marketing efforts. We help business owners of all sizes maximize word-of-mouth. We Empower our client's customers to share testimonials on their website, business directories and social media to grow their business. I am excited to lead our team's sales and channel partnerships efforts. Prior to joining Testimonial Tree I was an advisor at the World's leading IT research and advisory company Gartner (IT).

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Posted in ecommerce, online retail trends

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