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

(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.)

In this 2010 file photo, a United Parcel Service driver lifts an Amazon box in Palo Alto, Calif.   (AP Photo/Paul Sakuma, File)
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