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Online retailer moves towards same-day delivery model

Amazon to open tax-paying local distribution centres

Amazon is reportedly planning to open a number of local distribution centres in order to better facilitate its same day delivery services – a move that has been both praised and criticised.

According to the Financial Times, the firm is opening warehouses in New Jersey and New York, with plans to open more in California, Texas and Virginia.

Apparently the scheme means that the online retail giant is moving away from its long-standing business model of locating distribution centres in low-tax regions and is instead introducing a taxable presence within populated areas. Good news for long-term critics of Amazon’s tax advantage on pricing.

However, some critics say that the move towards same-day delivery will pose a real threat to local retailers, many of whom rely heavily on being the only outlets able to offer an instant purchase.

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