Amazon Post Sales Tax

It seems inevitable that Amazon will be soon living in a post sales tax world. Here's one idea on how that might change Amazon's strategy . . .

Potential Scenario

Amazon has an edge right now. They don't pay state sales tax. It gives them an advantage that perhaps 5% over competitors who have a psychical store in a state (which makes them pay the tax.) I see the state budget situation forcing states to force amazon to collect.

Impact & Change

If that happens, Amazon wouldn't have any reason not to invest in physical locations. How could they do that quickly? Rite-Aid.

They have 4800 locations in 31 states.  Drive through!

Disclosure

I own Rite Aid stock.

 

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© Dennis Schleicher Jr 2017.

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