Can faster delivery help Amazon.com compensate for state sales tax collection ?

An article in the New York Times (September 15,2012) describes the rapid pace of new warehouses opened by Amazon.com to hold inventory close to customers and cut a day out of shipping time. Next day or same day delivery will thus be possible soon, without premium shipping. Recent state decisions requiring Amazon to collect state sales tax has eroded their price competitiveness, but will faster delivery permit the company to retain its growth ? If delivery is done by couriers and not the US Postal service, how will deliveries be timed to be successful ? Does Amazon’s retail sales level, which now matches McDonalds, Sears etc, provide it the scale to be successful in this new logistics venture ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

One Response to Can faster delivery help Amazon.com compensate for state sales tax collection ?

  1. Same day, last mile delivery for retail products? Good luck Amazon! This is why we have courier services, and it only works when you can afford to pay for it. If they can do it, I can only envision urban warehouses servicing dense cities (San Fran, not LA).

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