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Wringing Amazon dry
Economists at the Ohio University bring out a report on e-retailers

Team Outlook Business

Despite online retail transactions being all the rage in present times, a report by economists at the Ohio University spells doom for e-retailers in the US, especially global giant Amazon. The report shows an average decline of 9.5% in products purchased on Amazon for the period 2012-2013 in five states where a crucial tax law came into force. Consumers seem to have shifted to rival online retailers, who recorded a 19.8% increase in purchases for the same period. Local brick-and-mortar companies, the intended beneficiaries of the law, do not seem to have gained much. Brian Baugh, Itzhak Ben-David and Hoonsuk Park conclude that the Fairness of Marketplace Bill pending in the House of Representatives might not translate into increase in sales for local retailers, despite bleeding e-retailers.

Title: The "Amazon" tax: Emperical evidence from Amazon and main street retailers

Source: The National Bureau of Economic Research

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