Amazon logistics center.
Amazon has had an unbeatable price advantage over its physical rivals. When you buy anything from your local retailer the company is required to collect local sales tax at the checkout. In most states, Amazon is exempt from that rule. According to a 1992 Supreme Court ruling, only firms with a physical presence in a state are required to collect taxes from residents. For example, if you live in California and buy a product on Amazon you are supposed to pay a $100 “use tax” when you file your annual return in that state. But nobody does that. For most people, then, most items at Amazon are significantly cheaper than the same, identically priced items at other stores.
