How Badly Will Online Sales Taxes Hurt Amazon?

Updated
How Badly Will Online Sales Taxes Hurt Amazon?

Amazon.com bears are clinging to the notion that as more states begin to collect online sales taxes, the e-commerce titan's price advantages relative to traditional bricks-and-mortar retailers will erode, stopping Amazon's tremendous sales growth in its tracks.

While acknowledging that the gap between Amazon's prices and those of traditional retailers will be narrowed as more states collect online taxes, Motley Fool analyst Joe Tenebruso believes that it's important to note that Amazon will still have better prices than most merchants on most items. And in the following video, Joe explains one way that Amazon will actually benefit from this situation.

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The article How Badly Will Online Sales Taxes Hurt Amazon? originally appeared on Fool.com.

Eric Bleeker, CFA, has no position in any stocks mentioned. Joe Tenebrusomanages a Real-Money Portfoliofor The Motley Fool and is an analyst on the Fool's Stock AdvisorandSupernovapremium service teams. You can connect with him on Twitter: @Tier1Investor. Joe has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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