Dealerscope has long covered the battle between Amazon and the states regarding the collection of sales tax for items sold by the e-commerce giant. As of April 1, Amazon now collects sales tax in each state that has a tax on products sold through retail, bringing to an end a years-long journey by state governments to get their “fair share” of money made by Amazon.
With that battle now complete, U.S. states are now turning their attention to a potentially much more lucrative section of Amazon’s website—the third-party supporting Amazon Marketplace.
According to a recent report in the Wall Street Journal, states have had a tough time cracking down on third-party sellers through Amazon, which gives those sellers a huge pricing advantage—sometimes as much as 10 percent—over brick-and-mortar retailers and products sold directly by Amazon. Further, states could be missing out on possibly billions of dollars in revenue.