Amazon.com, Inc. (NASDAQ:AMZN)’s been hit hard in the figure as two more states adopt the new law making customers pay state sales taxes, informed FOX. Its price is in a continuous decline and it might get under the current number of about $317.9. Today’s almost 0.2% upswing culminates the downfall of approximately 7.5% for the last 30 days. Amazon.com, Inc. (NASDAQ:AMZN) will try to fight the decision, but there’s actually little it can do.
Almost half of the total number of states in US has begun to collect fees on the purchases people make and it isn’t expected to end here.
“Today, Minnesota and Maryland can start collecting state sales taxes from Amazon customers, this would bring the total number of doing that to 23,” informed Liz MacDonald.
Amazon.com, Inc. (NASDAQ:AMZN)’s already pressured by the Chinese giant Alibaba Group Holding Ltd (NYSE:BABA), among other rivals, enough to react negatively to any such extra costs. However, on a larger scale, this shouldn’t bother Amazon.com, Inc. (NASDAQ:AMZN) that much because any other retailer in the given state will have to coerce with the rule of law, but the e-commerce giant can try and have a say on the subject.
“Amazon has been fighting to protect customers from state sales taxes, but it looks like this will go through. And next up could be South Carolina and Ohio. […] Amazon is saying ‘This is putting us at a disadvantage to eBay and Overstock.com, whose customers do not get hit with state sales taxes’,” said Liz MacDonald.
The last piece of the above statement just means that Amazon.com, Inc. (NASDAQ:AMZN) covers more states than eBay Inc (NASDAQ:EBAY) and Overstock.com, Inc. (NASDAQ:OSTK) and has more warehouses in the states collecting sales taxes compared to its competitors. So, this is a story in which bigger with more coverage causes larger exposure to changes in the rule of law, and all it’s left is to hope for a happy ending.
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