Amazon Expands, Eyes Same-Day Delivery
Retailer hopes to make up for new sales tax it must charge
By Liam Carnahan, Newser Staff
Posted Sep 12, 2012 11:38 AM CDT
In this 2010 file photo, a United Parcel Service driver lifts an Amazon box in Palo Alto, Calif.   (AP Photo/Paul Sakuma, File)

(Newser) – Just when you thought Amazon couldn't get any bigger, the online retail giant is expanding in an effort to offer something that most web-based merchants can only dream of: same-day delivery. The company is opening up new warehouses in California, Pennsylvania, New Jersey, Virginia, and elsewhere, in locations much closer to metropolitan areas, reports the New York Times. The move comes as new laws force Amazon to begin charging sales tax in some states, which could dent its long-held price advantage over competitors. Faster delivery could offset that.

Small retailers, particularly booksellers, rejoiced at the new rulings requiring state sales tax for online merchants. But some are feeling less optimistic at the prospect of Amazon's expansion, and fear same-day delivery will only make the retailer more popular with customers. Analysts are unsure whether the same-day delivery will work out, however. It's a "very, very expensive" endeavor, and even with the new warehouses, only some locations close by would be able to benefit from the new delivery system. (Click to read about Amazon's e-reader upgrades.)

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Showing 3 of 7 comments
Sep 12, 2012 1:22 PM CDT
Same day seems a little unrealistic because of the bottle neck at UPS and USPS. But next day seems totally plausible for wide swaths of the country. Even next next day would be a home run. I am used to a week. Just ordered something from Shanghai. It left Friday afternoon and I got it Monday afternoon. amazing. Amazon take note.
Sep 12, 2012 12:13 PM CDT
This is a direct result of liberals Amazon bashing and state mandated tax collection of online purchases. When Amazon purchases remained tax free, it behooved Amazon to have very limited distribution centers, to protect themselves for in state taxable presence. Now that Cali. and other states trend in imposing out of state online purchases, Amazon has no incentive to continue with very few centers. Quite the opposite - have a s many hyper local distribution centers, and offer same day delivery. Brilliant.
Sep 12, 2012 11:46 AM CDT
If you can order something on Amazon and have it show up this afternoon, why would you drive to Wal-Mart? Pretty brilliant.