Amazon.com, Inc. (AMZN), eBay Inc (EBAY), Best Buy Co., Inc. (BBY): This New Legislation Could be a Game-Changer for Retail

On the other hand, things keep getting better for America’s major e-commerce companies. Amazon shares are up almost 40% since the beginning of 2011, and the company now commands a $117 billion market value. eBay Inc (NASDAQ:EBAY), meanwhile, reported a 21% increase in net revenue for fiscal 2012, and has grown its sales 17% compounded annually since 2009. Clearly, better pricing has a lot to do with the success of online retailers.

Best Buy Co., Inc. (NYSE:BBY)’s traded above $30 per share as recently as two years ago, before cratering into the low-teens to begin 2013. Things got so bad that the company’s founder and Chief Executive Officer Richard Schulze began soliciting private buyout offers. Fortunately for shareholders, Best Buy shares have gained solidly over the past several weeks, climbing to their current level of $22 per share. Perhaps, at least part of the company’s resurgence has to do with the market’s anticipation that Best Buy will finally be on a more level playing field with its major competitors.

The Marketplace Fairness Act sounds like reasonable legislation designed to correct an obvious loophole in our tax code. It seems that brick-and-mortar retailers, such as Best Buy, would benefit significantly from this, as consumers would no longer be incentivized to do all their shopping online.

That being said, it’s safe to say that Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) will be fine even if the Marketplace Fairness Act passes. Consumers love to shop online for its convenience, which isn’t likely to change anytime soon. But in Best Buy Co., Inc. (NYSE:BBY)’s case, it could be exactly the catalyst needed to convince the market that the company is on solid footing again.

The article This New Legislation Could be a Game-Changer for Retail originally appeared on Fool.com and is written by Robert Ciura.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.