Amazon's hypocritical television ads for 3rd party sellers!

[healthmyths]

Amazon's been running a series of ads show 3rd party sellers. Bragging how these sellers are small businesses. But it is due to these sellers that Amazon makes most of their money!

Amazon has grown to become a large part of US e commerce. In the last 12 months, marketplace sellers have become a more important part for Amazon as sales from third party sellers have consistently been growing. According to Statista, in the last 10 years Amazon’s Percentage of paid units sold by third-party sellers on Amazon platform has nearly doubled (26% to 51% in Q2 2017).

Amazon decided to allow third parties to sell on Amazon as a means to ensure that they can gain access to products and content that they themselves don’t sell. This ensured that they have a greater selection for customers. This was a historic decision that would change Amazon’s business and also ensure that in the future these marketplace sellers would face legislative changes by themselves.

Amazon has been clear to state that they are not responsible for products sold on their marketplace nor are they liable for the collection of sales tax by their third party merchants.
Do Amazon Third Party Sellers Have A Tax Problem? | Skubana

Amazon not only boasts a hugely successful online retail platform but also a thriving digital marketplace which is seamlessly integrated with the main retail shopping experience. In the fourth quarter of 2019, 53 percent of paid units were sold by third-party sellers. In 2018, nearly three-quarters of Amazon seller businesses had between just one and five employees.
In 2018, nearly three-quarters of Amazon seller businesses had between just one and five employees.
Amazon: third-party seller share 2019 | Statista

So who has suffered most from this?
Brick and mortar companies that are closing because that can't compete at the prices.
The Amazon 3rd party don't collect sales taxes. Contrary to the brick and mortar that have to.
As a result the brick and mortar are at a disadvantage. And they are closing.

• Payless ShoeSource - 400 stores
• JC Penney - 138 stores
• Macy's - 68 stores
• Sears and K Mart - 150 stores
• HH Gregg - 88 stores
• Abercrombie & Fitch - 60 stores
• Guess - 60 stores
• The Limited - 250 stores
• Wet Seal - 171 stores
• American Apparel - 110 stores
• BCBG - 120 stores
• GameStop - 150 stores
• Radio Shack - 550 stores
• Staples - 70 stores
• CVS - 70 stores
• Gander Mountain - 32 stores
• Family Christian - 240 stores

Why So Many Stores Are Closing Now

 

[gipper]

Many Amazon third party sellers are small businesses and many of them are very successful.

 

[Osiris-ODS]

E-merchants have been putting brick and mortar stores out of business for years, ever since the internet became readily accessible as a commerce source. The reason brick and mortar retailers sell products a higher prices is not sales tax, but the overhead associated with rent, property insurance, electricity, wages, etc. at the brick and mortar stores -- almost none of which is incurred by e-merchants (hence, the ability to sell goods at a lower cost).

Secondly, "Amazon" is not responsible for collecting the sales tax owed by the 3rd-party merchants that offer products for sale through their online marketplace. "Amazon marketplace" is not the same as "Amazon" when Amazon is the seller and supplier of a product. Marketplace is simply an online platform through which sellers make products available to consumers, much like Ebay.

And like Ebay -- when a company that merely provides an online platform connecting consumers with product sellers, they are not responsible for the sales tax owed by the sellers. "Amazon Marketplace," like Ebay, does not sell, store, supply or ship any products. If the sellers of a product are not paying the state sales tax owed, it is up to the states to go after them for violating state law.

You cannot fault individual sellers (i.e., sole proprietors or small businesses) for taking advantage of the availability of such online platforms to make money and compete with brick and mortar retailers, and you cannot punish consumers for deciding to purchase the same exact products sold by brick and mortar retailers at a less expensive cost. This whole argument is ridiculous.

 

[Auld Phart]

Politics?

NO

 

[ABikerSailor]

You know, I'd be a bit leery of buying anything from Amazon, especially after the Inside Edition story I saw last week. Seems that people were buying stuff from Amazon, using it or taking it, sending back the used (or missing merchandise) in the box. Then, when it was returned, Amazon workers didn't check it, and just shipped it out again when the item was ordered. Some didn't get what they thought they were paying for (got cheap knock offs instead), or got used and dirty stuff, or some other crap.

Call me old fashioned, but I kinda like going to the store to get my things.

 

[HenryBHough]

Yesterday I shopped for florescent lamps for some bathroom combo fan/light fixtures. Tried three local stores which stock that sort of thing. None had any. One tried to sell me new light fixtures. Another had never heard of the particular type despite their also selling same brand of bathroom light fixture. The last one said they could order some for me and they'd arrive with the normal shipment next month.

I bought four from Amazon. They'll be here Monday. I regret having driven a total of 15 miles store-to-store. Probably won't do that again soon.

Oh, before you tree-huggers set your panties all in a twist....I did try for LED replacements but could fine none anywhere that appeared to be a fit for the particular sockets. Some might have worked but no guarantee. "Might" just didn't seem quite enough.