One of the major advantages Amazon has had over brick-and-mortar stores has been the lack of a sales tax. One of the disadvantages has been the lack of immediate gratification by consumers purchasing items. You buy something, you want to use it immediately. Recently, Amazon has stopped fighting the sales-tax war, which seems like a curious move to give up such a huge advantage over places like Walmart and Best Buy.
Slate’s Farhad Manjoo argues that by giving up the sales tax fight, Amazon is pushing ahead with another disruptive plan: same-day delivery that will all but destroy local retail.
Now that Amazon collects state sales tax, it can legally set up distribution centers within those states. So, instead of having to ship items to NYC from Kentucky or wherever, it can establish a myriad of warehouses across the country to ship ordered good within hours of the purchase time. Manjoo theorizes that next-day delivery will eventually become the default and same-day delivery will be a cheap upgrade or included in its Amazon Prime service.
If that happens it could be game over for many big box stores.