Trump Fights Amazon
- Apr 17, 2018 -

Buy Amazon's own products. The new sales tax rules may bring more revenue to Amazon. Understanding tax code and file requirements is very difficult for third-party sellers. The codes and requirements of each state and county are different. For small businesses, this is a cumbersome administrative trouble, so many of them choose not to take the sales tax. Amazon’s seller, Wholesale Breakthrough’s Eddie Levin, told Yahoo! Finance: “Not that they don’t want to pay taxes, but because it’s a lot of trouble. Only when they’re asked, or when taxes are simple, a few sellers will Do it.” Amazon provides tax calculation services for third-party sellers, but will charge a 2.9% fee. For sellers, this service does not make things easier. In each state, they still need to spend more time filing tax returns. If you do not do so, spending will affect the bottom line of the budget. Piper Jaffray surveyed US consumers in 2000 to find out what factors would motivate consumers to shop online. The results showed that only 5% of consumers stated that sales tax was a key factor. "Amazon didn't help much on this issue. It didn't provide sellers with a simple way to file tax returns." Levin said that he has to sell millions of things on Amazon every year. "Amazon does not consider the interests of the sellers. Amazon considers the interests of consumers." PiperJaffray said that if third-party sellers face complex sales tax, they may use Amazon's tax calculation service, which will Bring high marginal revenue to Amazon. He estimates that third-party retail services will bring $42 billion to Amazon in 2018, which is equivalent to 18% of revenue. "Each year, Amazon sellers owe the state government billions of dollars. Sellers do not pay taxes. Amazon has not provided much help for sellers in paying taxes," said James Thomson, a partner at Buybox Experts. "This year you should see that many sellers will suffer a huge financial blow."

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