Amazon has long fought legislative efforts to force the retail giant to collect sales taxes. Because Amazon only needs to collect sales tax in states in which it has a physical presence, the company strategically built warehouses in low population states like Kentucky and then shipped the goods to larger markets like California.
However, Amazon is changing its strategy, and has pledged hundreds of millions of dollars to build new warehouses across the country in an effort to bring same day shipping to its customers.
The new warehouses will increase prices on Amazon, as customers will have to pay sales tax, but they will also greatly increase the speed of shipping.
The company currently offers free three-day shipping for all customers and free two-day shipping for its Amazon Prime subscribers. Customers can also pay extra for next day shipping.
Amazon invested in robot development company Kiva Systems to improve shipping times and reduce warehouse errors.
Slate argues that local retail could be impacted as a result of the convenience of same day shipping. “Order something in the morning and get it later in the day, without doing anything else. Why would you ever shop anywhere else?”
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