How Does The Government Affect Amazon

Introduction

Amazon is a widely popular e-commerce corporation worldwide. It was founded in 1994, in Seattle, Washington, and launched in 1995. In 1999, after only 5 years of being founded, Jeff Bezos, founder of Amazon, was named Time Magazine’s “Person of the Year”. It is one of the first large companies to be able to cost effectively sell goods through the internet. Amazon is credited with publicizing online shopping. Today, in 2018, 23 years after the company was launched, Amazon has found incredible success, and is in the process of choosing a new location for a second headquarters.The criterion for the new location include, “...the second headquarters would ideally be located in an urban or suburban area with more than 1 million people,
These include political stability of the United States, and the perspective of our government towards the e-commerce market. Amazon is a company that will always benefit from political stability, mainly because when the political environment is secure, they are able to expand their company to different parts of the United States and foreign countries with less complications. The perspective of the government towards e-commerce affects Amazon because of the taxation policies in place. Different states charge a different amount of taxes on e-commerce companies based on the laws that they have in place. Depending on the new site that Amazon will choose for their second headquarters, this will mean they would potentially have to pay a larger sum of money in taxes. The economic condition of the new location will also affect Amazon because the better the economy, the higher the overall profits and sales will be. Amazon’s performance will also depend on the growth of the economy where they choose operate their second online business. Depending on the economic circumstances of the city that is chosen, it could either help or hinder the company. For example, a state that is increasing its disposable income could potentially boost the company's overall performance. However, if there is a large amount of unemployment, then there could be a lack of disposable income, which could harm Amazon’s overall performance. The
Sales in e-commerce have continually been increasing, in 2017 the United States total e-commerce sales totaled at 453.46 billion dollars. [2] However, the majority of this money is coming from the population who is wealthier, and has a steady disposable income. The gap between the wealthy, and the less fortunate is a potential threat in foreign countries where Amazon offers their services, but it is also an issue in the United States. In certain areas, there are large disparities that could eventually cause disposable incomes to slow and decrease, which would lessen Amazon’s total revenue. With a large population of people having access to the internet, and internet users increasing each year, more and more people are looking to online commerce companies to be able to buy the best products, with the least expensive prices, that can be delivered to their doorstep. This convenience is offered only by online retailers, such as Amazon. However, although people are trying to find ways to increase productivity in their lives, today, many are not willing to sacrifice the environment for this. Environmental sustainability is a very important idea in the business world, especially for those online. They must be constantly be looking for ways to reduce their waste, pollution, and packaging. With customers increasing concern with this aspect of business, online businesses have been able to eliminate travel time for