I went to purchase Christmas gifts on Amazon a couple weeks ago and when I got to the final checkout page, I noticed tax was being added onto my order. I thought this was a mistake since I live in Minnesota and I hadn’t read any local news surrounding this topic. Naturally I went to Google and discovered that Amazon started collecting tax in Minnesota on October 1, 2014. Blasphemy! I placed my order with Best Buy and decided I’d rather earn points on the purchase and pick up the items the same day. I got to thinking, will Amazon begin to lose customers once the inevitable happens when tax is collected in all 50 states?
Let’s face it, most customers order from Amazon to avoid sales tax. I signed up for Prime shipping because I’m too impatient to wait 5-7 days to receive an item. However, to receive 1-2 day shipping for
$79 $99 a year and save money on sales tax was a no brainer. But now, I just don’t know if it makes sense to keep being loyal to Amazon. The product is going to be the same price at stores like Best Buy, Target and Walmart and I can pick the item up that day. If it’s not the same price, then the stores will price match Amazon by showing them the cheaper price on my smartphone.
So I beg the question, should Amazon offer a rewards program to keep customers loyal? Let’s face it, every company seems to offers some sort of points program to try and keep customers from switching their loyalty. Amazon only has a credit card that offers points when you put your Amazon purchases on that specific credit card. What about those who don’t want to signup for the Amazon credit card and want to pay with a different form of payment? Amazon has no rewards program for these customers!
It really makes no sense to keep my Prime subscription since I only use it for the shipping benefit. Now that tax is being charged, I can go to a store and pick up the item that day for the same price.
I’ve already earned Elite Plus this year with Best Buy. I receive free 2 day shipping with them and a 45 day return policy, along with 2.25% back in Best Buy reward certificates. Why in the world would I continue to buy items from Amazon when I can have better benefits with Best Buy? As a points chaser, I’m always going to choose points over nothing!