Amazon: Deal of the Decade and a Half Now Over

Bad news for many of Amazon’s California buyers as well as any online retailer. As of this Friday, a new tax collection requirement will make Amazon charge California residents sales tax with every Amazon purchase. The aftermath of this will be felt very soon on all sides.

For Amazon they have had a great loophole and deal going on for so long which made customers happy. You could buy 3 video games, some DVDs, and some kitchenware together at normal price. After about 2 days to a week, when you received your package, you’d have a smile on your face because you just saved more than 20-30 dollars of no tax because Amazon is based in another state, and had no Brick and Mortar (B&M) stores.  Now why would you need to wait for your items when it will cost you the same price to just drive down to your local electronic store like Gamestop or Best Buy, since you would get the game on release for the same price? Before, buying Amazon Prime would have more than covered the Tax for everything you ordered and delivered your product in just two days. This will definitely shake the core that made Amazon so big, especially in the states.

It’s not just Amazon who will be feeling this. Amazon’s affiliates will be feeling this hard because of the new state law. Amazon is terminating contracts with thousands of companies and many of these companies are thinking of jumping out of most states leaving more people potentially jobless very soon.

So whats the point of the bill you ask? Companies big and small all are upset Amazon found a way to be cheaper than them by nearly 10%, and with no tax it easily led to more people shopping online. Add the fact  that California is severely in debt, and viola. The bill was backed by companies like Gamestop, Best Buy, and Barnes & Noble to help push it forward. Predictions show an estimated $317 million dollars, so why wouldn’t the government choose the side that creates more money.

So is there any good news in this? It’s a dark day for many of Amazon’s loyal customers and out of luck “former” affiliates. The only decent news is that CA State Sales Tax drops 1%… Yay.

I personally had about 5 games and the VITA pre-ordered via Amazon to save me on the sales tax. Well I guess I am out of luck on the 50 dollars I would of saved.

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Chris Del Castillo
Chris Del Castillo 2588 posts

Growing up Chris watched a lot of the original Saturday morning cartoons and developed a love for arts and animation. Growing up he tried his hand at animation and eventually script writing, but even more his love of video games, anime and technology grew.