Amazon Begins New Tax Deal, May Implement Same-Day Delivery

The largest online retailer in the world is no other than Amazon, and the pack is trying to follow their lead. Expansion for the online giant appears to be effortless, even in regards to the transition into state sales tax collections. As Amazon builds more distribution facilities in various states, the more tax collections begin. The latest tax deal for Amazon is now in Maryland.

Internet Retailer has reported Amazon has announced Maryland is the newest state it will begin collecting taxes in. The retail giant is planning to build a 1-million-square-feet distribution center in the city of Baltimore. As a result, taxes will begin to be extended to the residents of Maryland, which makes this the 15th state in the US for Amazon. It has not been disclosed when Amazon's distribution center will open, however, more than likely it will soon. The new facility will also bring an increase in employment to the area. Amazon expects to create over 1,000 jobs to operate their new facility. With a growing, yet slow economy, the new move will turn out to benefit Amazon and the state of Maryland.

This will be the company's first physical presence in Maryland. With adding this state to its' belt, Amazon will now have tax collections for over 50% of the US population. This is very large figure for the e-retailer to now be reaching. There is no telling what their business strategy is in the coming years ahead. Amazon will not be building the facility from the ground up. Instead, it is working toward building the facility on a former industrial property used by a General Motors Corporation plant in the port of Baltimore. This reaffirms that Amazon will not waste any time getting this facility built, as it continues to move at a pace its' competitors are having to keep up with.

Amazon may be new to the state, but not to the northeast region. Late last year, Connecticut was added to the list, in which Amazon agreed to make a $50 million investment to build a distribution center there. Virginia, Arizona and New Jersey were added in 2013 as well. In 2012, the retailer started collecting sales tax in Pennsylvania, California, Texas, and Massachusetts. Amazon will also begin new tax collections in Wisconsin on November 1st of this year. To date, Amazon has opened 40 distribution centers and 89 fulfillment centers worldwide.

At this pace, it appears Amazon will at some point be collecting sales tax in every state in the country. What that means is the company will probably have a physical presence in every state as well. With this level of reach that Amazon will have to their customers, it very well may be gearing up to provide same-day delivery nationwide. Large retailers such as eBay, Wal-Mart, Macy's, Target, Google, and more have all started testing and implementing same-day delivery in various US cities. Online retail is growing annually by 16% and may reach 17% this year. With this type of growth, having the ability to offer same-day delivery makes online purchasing even more attractive and convenient for shoppers.

It is clear that Amazon will have some form of delivery system to meet the needs of its' customers, especially having multiple distribution centers throughout the US. Amazon is more and more closer to their customers, therefore, same-day delivery would make sense. The e-retailer could partner with a Same-Day Courier such as A-1 Express to help it quickly implement a same-day delivery solution nationwide. This Baltimore Courier has a national footprint and a superior courier technology-based operation, enabling the courier to successfully offer same-day delivery on a large scale. This would be ideal for a well-known online retail company like Amazon, as it continues to rapidly expand its' market.

References: 10.25.13, Internet Retailer, Paul Demery, Amazon's New Tax State