How Badly Will Online Sales Taxes Hurt Amazon?

Amazon.com (NASDAQ: AMZN  ) bears are clinging to the notion that as more states begin to collect online sales taxes, the e-commerce titan's price advantages relative to traditional bricks-and-mortar retailers will erode, stopping Amazon's tremendous sales growth in its tracks.

While acknowledging that the gap between Amazon's prices and those of traditional retailers will be narrowed as more states collect online taxes, Motley Fool analyst Joe Tenebruso believes that it's important to note that Amazon will still have better prices than most merchants on most items. And in the following video, Joe explains one way that Amazon will actually benefit from this situation.

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  • Report this Comment On December 15, 2013, at 12:31 PM, tony1959 wrote:

    These guys are nuts; the sales tax was a huge deal specially for electronic and big ticket items. Currently, I am shopping for a laptop and looking at 5 different make and models. BestBuy is a lot cheaper for all 5, and I could go to my local store today..test the laoptops..get info and pick it up today..Amazon can never match that even if they have a distribution center next door or if they use flying saucer!! You got to be out of mind picking that at Amazon just because its online and convenient....where is the amazon advantage??

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