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Amazon is an electronic commerce company with its headquarters situated in Seattle-Washington, in the US. Amazon is the biggest online retailer; it also provides ferrying of some of its products to other countries. Jeff Bezos founded Amazon in 1994. The online retailer was named after the Amazon River. Amazon commenced as an online bookstore, but it began selling a wide range of wares. The online retailer was named Amazon because its founder wanted it to appear first in the Alphabetical order. Jeff Bezos settled on Amazon because the place was fantastic. The founder also hoped that his company could be the largest, just like the river.
Amazon’s logo is an arrow that leads from A to Z forming a smile. The smile formed by the logo indicates a customer’s satisfaction. The goal of coming up with this logo was to have every commodity in the alphabet. The company during the early stages realized no profits therefore, provoked stakeholders complaints that the company was not making gains as fast as expected. Many companies exited from the business. Amazon persevered and eventually made profits towards the end of 2001.
The company’s stay in the market has faced many threats and opportunities that include legal and political ones. In the year 2001, Amazon heads permitted customers to donate $5-200 to the campaigns of the United States presidential hopefuls. Through the donations, the online retailer opened chances of getting government tenders to supply groceries or other products. The Amazon online retailer is facing much pressure from its competitors through the government. Customers of Amazon enjoy purchases that are free of sales taxes. Competitors like Wal-mart are lobbying elected officials and falsely crying the exemption of Amazon from paying taxes.
To win the battle against Amazon, competitors have consolidated their support behind a vague political coalition. The political coalition is known as Alliance for main street fairness. This coalition is trying to ensure that sales taxes are levied on online sales. The group is trying to effect these changes in twelve different states inclusive California. It is a rare opportunity to Amazon that the regulations presently do not permit brick-and-mortar retailers to compete fairly with online retailers, like Amazon.
These campaigns have had remarkably profound effects on Amazon. For instance, now Amazon is forced to collect taxes if it employs associates. This legislation forced Amazon to let go of its affiliates in Illinois. The same woos have continued to stalk the Amazon retailer in Texas; the state resolved to impose a $269 million bill on the online retailer. Such legal penalties have contributed to the closure of distribution centers like that in Texas.
Tax-free electronic commerce has made it possible for consumers to save a lot of money and formed all types of opportunities. Evidence shows that Amazon’s progress is being terminated, and opportunities decline due to tax difficulties. The centers closure leads to retrenchment of employees and lack of competition, which may result to, compromised services. This mischief on Amazon is caused by the desperate state organs and envious retail competitors that come together to make the market place unfair. The unfair grounds of trading increase costs and harm Amazon tremendous business.
Since states are on the insolvency, it will be a time to crack a whip on taxing prominent retail establishments. Taxes on online sales of Amazon will make life tough for an average person, because taxes increase the costs of commodities. State organs should champion the rights of citizens rather than being egocentric and considering claims by Amazon’s rivals. The legislation bodies should also provide financial laws that make life cheaper than setting an even ground only to disadvantage the poor and even lower educational standards.