Trump has two specific complaints about Amazon. One is that it’s ripping off the US Postal Service, costing the government billions. Perhaps a better deal can be extracted — a recent study by Citigroup concluded as much — but the postal service says its arrangement with Amazon is profitable.
The second is that Amazon doesn’t pay sales taxes. This once was true, but Amazon now collects sales taxes in all states that levy them.
The larger case against Amazon is that it’s killing off traditional retailing, while accruing too much power for itself. There’s no doubt bricks-and-mortar retail is in decline, although we shouldn’t exaggerate its scale. E-commerce currently accounts for less than 9 percent of retail sales, while Amazon, for its part, accounts for roughly 44 percent of all e-commerce.
If Amazon is sharp-elbowed and aggressive with its competitors, no one is forced to buy from it. Customers go there because they find it easy to use and cheaper than the alternatives. Amazon isn’t pocketing huge profits. Instead, it’s doing what companies should do: innovating, then plowing the proceeds into more investments (Amazon is much more than an e-commerce company).
Trump is wrong about Amazon on all counts
The second is that Amazon doesn’t pay sales taxes. This once was true, but Amazon now collects sales taxes in all states that levy them.
The larger case against Amazon is that it’s killing off traditional retailing, while accruing too much power for itself. There’s no doubt bricks-and-mortar retail is in decline, although we shouldn’t exaggerate its scale. E-commerce currently accounts for less than 9 percent of retail sales, while Amazon, for its part, accounts for roughly 44 percent of all e-commerce.
If Amazon is sharp-elbowed and aggressive with its competitors, no one is forced to buy from it. Customers go there because they find it easy to use and cheaper than the alternatives. Amazon isn’t pocketing huge profits. Instead, it’s doing what companies should do: innovating, then plowing the proceeds into more investments (Amazon is much more than an e-commerce company).
Trump is wrong about Amazon on all counts