The rapid growth in internet sales is great for online retailers, but it's bad news for state and local governments as many online purchases don’t have any sales tax attached to them. Long before the internet was on anybody’s radar, the Supreme Court ruled that states couldn’t require that retailers without a physical presence in a state, like mail-order companies, charge sales tax on their behalf.
Amazon.com
Borders Group filed for bankruptcy in New York today after management changes, job cuts and debt restructuring failed to make up for sagging book sales in the face of competition from Amazon and Wal-Mart.
Barnes & Noble issued an open letter to Amazon affiliates attempting to capitalize on problems the online retailer faces with some state tax authorities. States such as New York have told Amazon it must collect state sales tax because its affiliates count as a physical presence. In response, Amazon has shut off affiliates in states that have enacted such laws.
Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes, an executive informed employees in an email obtained by The Associated Press.
To resolve a privacy lawsuit brought by Amazon and the ACLU, the state of North Carolina has agreed to stop asking all e-commerce sites for information about state residents who have made online purchases.
Illinois is dangerously close to making an already challenging economy even more difficult for thousands of small businesses with a new e-commerce tax. Lawmakers recently passed the measure without regard for the potential impact on Illinois' technology businesses.
Many online retailers say half of mobile commerce is already coming from tablet devices, and more purchases are likely to come from tablets throughout 2011, according to a recent report from research firm Forrester.
Who hasn't been reeled in by the lure of a money-back rebate, reducing the purchase price of that new dishwasher or refrigerator you need? The process sounds so simple, too: Just fill out a rebate form, mail it back with a proof of purchase, then sit back and wait for the check to arrive in the mail. At least so it seems.
There are many holy grails in online commerce, but one that's frustrated executives and engineers alike is how to produce better recommendation algorithms. Produce better recommendations, and you'll sell more stuff.