Friday, June 10, 2011

Amazon associates - CT, USA dropped


Unfortunately, the budget signed by the American Governor Malloy contains a sales tax provision that compels Amazon to terminate referral program for Connecticut-based participants effective immediately. It specifically imposes the collection of TAXES from consumers on sales by online retailers – including but not limited to those referred by Connecticut-based affiliates – even if those retailers have no physical presence in the state. New tax law is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. When the Government interest interferes business, business will go elsewhere.

  • Amazon is the most successful online E-commerce company in the world.  Amazon is the King of e-Commerce business.  A $34 billion online empire made of click & mortar.  It is just the beginning.  Amazon is one of the most admired companies in the world.

  • When a business buys from another business it is called Business-to-Business (B2B) online shopping.  Both B2C and B2B online shopping are forms of e-commerce.  Amazon.com is B2C site where consumers are buying directly from the business (manufacturer).

    Some fast facts about #1 retailer in the world:

    • An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a shopping mall. The process is called Business-to-Consumer (B2C) online shopping.

    • Amazon Prime offers FREE shipping (for a ~ $79 yearly fee) is a hit with consumers that gives Amazon repeat sales across its many categories.

    • Amazon has ~ 33,700 employees.  Amazon was founded in 1994 by Jeff Bezos as an online book store has now become the internet’s largest retailer.  Please click on any of the link below to enter the official website of Amazon.

      According to amazon management email:  ”As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011. Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com”.

Do you think this kind of development is good for online business in general and in particular for the Amazon associates? Your comments will be appreciated.

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