Daily News Roundup – March 29, 2018

Trump Tweets Fake News About Amazon And Makes It’s Stock Drop

A new day, a new Twitter rant. This time, Trump lashes out at Amazon.

He tweeted that the company pays “little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”.

However, all three of these statements are misleading but have caused a 3% Amazon stock drop this morning. Let’s get some fake news straight.

Taxes

Amazon has started collecting sales tax on all eligible goods once they started adding distribution centers to many states on which Amazon pays local property taxes on. Given that sales came close to $106 billion last year, sales tax would be in the billions. It does not however collect sales tax on purchases made by customers to third -party vendors.

Postal Service

Amazon is a normal customer to the USPS paying them to deliver their goods. They do get a special rate because they ship so many packages but it is the same deal other major online retailers have. Even though they do have an unknown special agreement with USPS to have them deliver packages on Sunday, USPS does state that this deal is mutually beneficial.

Retail

It is known that small retail stores and even bigger chains are struggling in today’s economy mainly due to consumers preferring e-commerce. However other big chains such as Wal-Mart are to blame here too. Amazon helps smaller chains by accepting and distributing their inventory online as well and even giving them an opportunity to scale globally.