Slashdot Mirror
Borders Closes the Books on Amazon
theodp writes "Borders said Thursday that it was severing ties with Amazon and will compete directly against the e-tailer with its own website. The loss of Borders could cost Amazon $80-$160 million in annual revenue, according to one estimate. 'Amazon could gain market share in book selling over time because it will have an advantage over Borders, which now will charge a sales tax for all books sold. Companies have to charge a sales tax for Internet sales if they have a physical presence in states that collect sales taxes, [Stifel, Nicolaus & Co analyst Scott] Devitt said. Amazon collects sales taxes only on books sold in Washington, North Dakota, Kentucky and Kansas. Borders would collect sales taxes in all 50 states, the company said."
Slightly off-topic:
How soon before the next serious effort to force mail-order and electronic retailers to charge some form of sales tax for out-of-state purchases?
Way off-topic:
How many people actually bother to pay "use taxes" on goods they buy from out-of-state mail-order houses? How soon before a politician is brought down for failing to pay "use tax" on a $10,000 luxury item he bought mail-order to avoid paying a few hundred dollars in state sales taxes?
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Borders will collect sales tax in Alaska, Delaware, Montana, New Hampshire and Oregon, who do not assess sales tax state-wide? That's kind of odd.
No, not really. The store doesn't pocket that sales tax money, the state does. If they lower their prices they still have to pay sales tax and have the added effect of smaller profit margins.
I always found Borders other website far nicer to use and order from.