Amazon Successfully Shoots It's Own Foot Off

Amazon will begin collecting sales tax in Minnesota as of July 1, 2013.

Yup.

I can't say that this really upsets me because Amazon's fulfillment and sales processes have really dropped off in quality in the past 18 months or so, so I was already actively searching for other retailers from whom to buy my merchandise.

Other states, like Texas and Washington, have already been paying sales taxes with Amazon's purchases for years.

This current change in policy is because of Amazon's Associate's Program, whereby people can place advertisements on their websites to refer customers to Amazon for a small finder's fee, and because of Amazon's Marketplace Program, where Amazon serves as a middle-man for smaller businesses so that the smaller businesses can gain more visibility.  The new Minnesota law says that these entities that are associated with Amazon are extensions of its business and are, therefore, in-state sales locations....even if the people only sell to Amazon.

This means, that I will be removing my Amazon ads from this blog, because they are refusing to pay for any traffic this blog generates for them.  (Of course, their program has always sucked and I've had to go rounds with the Better Business Bureau and Amazon about their Associates Program, so I'm not really that heartbroken over closing a headache in my life).  In fact, Amazon is closing the Associate program in Minnesota entirely.  I guess we're all fired.

So, Amazon will have to start charging sales tax, or face the IRS.  Frankly, I smell a few rats in the Minnesota legislature.  Minnesota is the home base of the faltering Best Buy and Target Corps, both of whom are direct competitors with Amazon, but have been forced to charge sales tax because of their in-state locations.  To state it blatantly, I wouldn't be at all surprised if there was a direct, obvious trace of money or power from Best Buy and Target directly affecting the politicians that voted in this law.

You see, now Amazon's prices and fulfillment practices are not a great competitor with Target or Best Buy.  For example, I can go to Target and purchase anything I want.  If I later decide I don't want it, for whatever reason, I can return it to the store without having to pay shipping.

Amazon would charge me shipping unless the item is somehow damaged.

I can also take a wad of manufacturer and store coupons to Target and use them on sale items.  Like diapers.  I get the product now and I get it for a great deal less than Amazon (unless you paid the $80 per year for being a Prime Member- but then you have to factor in that $80 into the price of what you're buying).

If I want to go and buy a TV, I'm probably going to want to see it in the store, which has always been the major reason why Best Buy stores still have customers.  Now, though, the prices are not any better to buy online, so Best Buy probably dig itself out of the financial hole that it is in (too bad, in my opinion, but another topic).

I guess the major moral of this story is that Amazon got stupid somewhere along the way- I think it was about 3-5 years ago when it became a virtual monopoly of online shopping.  Their own programs have led to this requirement for sales tax.

I know that I will be shopping elsewhere now- I recommend Drugstore.com and your local Target or Walmart.