This move comes as a strategic play on Amazon's part. Adding warehouses in various locations impacted its sales revenue in the first quarter, increasing it by 34%. Currently it faces opposition by states when trying to build additional cost saving shipping warehouses. In exchange for permission to build new facilities in Texas, Amazon agreed to collect taxes.
This trend is expected to continue for the next few years, with Amazon reaching deals with several states. This has the potential to hinder its sales. Right now, Amazon is betting on the idea that additional facilities will increase profits more than a consumer backlash would hurt them. If they are proven to be wrong, they can expect to see struggling years ahead, as they lose the competitive edge that has made them unique in the online retail business. Consumers, if forced to pay taxes either way, may change online retailers, hindering its growth. However, if Amazon's play pays off, they may see increased efficiencies, better relations with states, and more growth.