Trump v Amazon

President Donald Trump giving Amazon CEO Jeff Bezos an earful.

President Trump is at it again.  *sigh*  His mouth is in overdrive, and his brain is in neutral.  His latest target is Amazon, the retailing behemoth.  Da Prez claims Amazon is ripping off the Treasury by not paying enough taxes, and is cheating the USPS, aka the Post Office, by not paying their fair share for shipping. I'm sure his displeasure has nothing to do with the fact that Bezos also owns the Washington Post, which has some very aggressive investigative reporters who have uncovered all sorts of Trump shenanigans.

Trump says Amazon is costing the USPS billions of dollars, financially breaking an already broke Post Office.  The only problem with that is it's not true.  No less than the Postal Regulatory Commission says the USPS makes a profit from its Amazon business, which subsidizes its other services.  In fact, as I recall, Amazon not long ago made a commitment to help keep the USPS afloat by maintaining or even increasing its business with them.  They had an ulterior motive for doing this, of course:  they didn't want to put all their eggs in only FedEx and UPS's basket. 

Now, about the state and federal government treasuries getting short changed.  Umm, President Trump, would you please show us YOUR taxes?  Have you not taken advantage of all the tax breaks YOU were legally allowed?  Of course you have, but somehow it's not OK if Amazon does the same?  

The truth is, Amazon pays state sales taxes on products they sell in those states where they have an actual physical presence.  In other words, if they have, for example, a warehouse or "Fulfillment Center" in a state, they pay that state sales taxes on everything they sell there.  But if you'll pay attention to Amazon's website you'll see that some of the things you can buy there are actually shipped from independent cooperating retailers, and THEY don't pay state sales taxes if THEY don't have a physical presence in the state they're shipping to.  While it does sound like an end run, it's legal.  Don't like the law?  Take a number....our tax code is hopelessly rigged.  And don't look to congress for a remedy.  They're the rig-ers.

If President Trump wants to pick on Amazon, why doesn't he point out all the local businesses they have helped close down over the years?  Why is Amazon allowed to keep buying up other businesses, like Zappos and Whole Foods, hastening its eventual stranglehold on American consumers?  "Economy of scale" is a double edged sword.  Bigger is definitely better....if you're big.  But if you're a small business, not so much.  It seems to me consumers are just unwitting pawns in their "bigger" game. 

S

What goes around comes around

I heard just yesterday that a store in Australia will soon institute a $5 "cover charge" to come in and look around.  They say they are trying to discourage people from coming in and trying out whatever it is they sell, then going home and ordering it online.  (If you do buy from them the retailer credits back to you your $5 cover charge.)

Interesting.  I can imagine their frustration with people like ME who look locally, but often buy online.  Not always though....I'll buy locally if the difference is just a few bucks, but for 30% or 40% difference, it's Amazon here I come!

But here's why I don't feel guilty about doing that: The big stores that I shun to order online are generally the same big national stores that blew into town 10-20 years ago and put all the local mom-and-pop stores out of business.  Seems to me they're now getting a taste of their own medicine.  To me this is just retail evolution.

Home Depot didn't shed any tears when they put Plaza Hardware out of business.  Nor did Best Buy show any remorse when they pretty much destroyed Hollingshed's Appliance.  Same with Walgreen's and CVS as they shuttered Payne's Drug Store.  And who killed Larry's Shoes, and do I have to say anything at all about all those little guys Walmart squashed?

Some things I won't buy online or from a catalogue.  Pottery Barn and Restoration Hardware both send me a very nice catalogue several times a year full of their new offerings.  I've found their furniture to be of commendable quality, but how do you buy a chair, for example, without sitting on it first?  I don't care what it looks like if it doesn't pass my butt test.

Shoes....I've found that even within the same brand line, shoes can feel different.  I want to try them on in a store and see if a particular style is all-day comfortable.  If so, then it's time to check Zappos, may the best cut-throat mega-retailer win.

And now a plug (unfortunately uncompensated) for my all-time favorite online retailer, LL Bean.  I've just replenished through them my summer wardrobe....3 pair of chino shorts, 3 very nice polo shirts, and 5 (various colored) t-shirts.  And if something is wrong, they make it right, no arguments.  Can't beat that!

If I was a big brick-and-mortar retailer, I'd be scared.  VERY scared.

S

I'm not sure I fully understand the difference between liberal and conservative stances on some issues.  In particular, consumer protection issues.  How is trying to force banks (and lenders in general) to say clearly, right up front and in plain English, what their terms are and what they're going to charge, anything but a good idea?  How is that partisan?  Unless you're a banker or lender intent on snookering the public into thinking they're getting a good deal when in fact you're charging them 28% interest or something like that, how could you not be in favor of such laws?  Where's the down side, unless you're a banker?  


The one thing I've learned from the financial crisis of '08 is that big business can't be trusted to do what's "right".  It's become so bad that as far as I'm concerned the burden of proof is on them to show me they're playing nice.  And to be fair there are a lot who do pass my smell test by honoring their warranties without resorting to loopholes and vague language that to a layman says one thing but legally means another, producing a clearly superior product, etc.   (Examples?....Amazon, REI, LL Bean, Zappos, to name a few.)  I consult Consumer Report regularly, and although I've never tried it, I've heard good things about Angie's List.  I just think it's a shame things have come to this.  Caveat Emptor...."buyer beware"....has never been more true.


What prompted this post was an article I read that told of one insurance company that was suing a bank for misrepresenting a financial instrument the insurance company was covering against default.  Sure enough things fell apart, the insurance company refused to pay up, and both are pointing fingers at each other saying the other side is a crook.  Hahaha....talk about the pot calling the kettle black!  I say a pox on them all.

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On a more pleasant note, tonight it's my turn to pick our date night restaurant, and I'm choosing Anamia's.  We've only been there once before, but it left a grand impression on me.  I can taste it now....yum!  If I can remember to take pictures of our meal before I dive into it I will. 

Happy Friday!

S