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View Full Version : Amazon targets one-day deliveries to make up for lost tax advantage


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09-12-12, 03:40 PM
Amazon is starting to lose one of its biggest advantages as an online retailer, with more states forcing it to collect (http://arstechnica.com/tech-policy/2011/11/marketplace-fairness-act-could-force-amazon-to-collect-sales-tax/) sales tax. But the company has no intention of losing its empire. Amazon is taking on a big expansion of its distribution warehouses, in an effort to make one-day shipping the norm, with same-day delivery not so far out of reach.

Under Amazon's plan, the company will be able to shave up to a day off of its two-day delivery times. ‚??We want fast delivery,‚?? Amazon CEO Jeff Bezos told the¬*New York Times (http://www.nytimes.com/2012/09/12/technology/amazon-forced-to-collect-sales-tax-aims-to-keep-its-competitive-edge.html?_r=1&nl=todaysheadlines&emc=edit_th_20120912). While the article said same-day delivery is getting closer to reality in some metropolitan areas, Bezos said that at a minimum, ‚??we can work on making it the next day.‚??

Amazon already does offer one-day shipping, but it tends to be pricey. Two-day shipping is available for "free" with the purchase of an annual Amazon Prime subscription. While no specific plans were announced, it seems possible based on Bezos's comments that Amazon Prime shipment times could drop to a day, at least in those areas where Amazon is expanding distribution. The new distribution sites, not coincidentally, are largely in states where Amazon is suddenly being forced to collect taxes. This is a departure from its previous strategy of shuttering distribution facilities (http://www.dallasnews.com/business/headlines/20110210-amazon.com-shutting-irving-office-over-tax-dispute.ece) in states that want sales tax collections.

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