The Supreme Court just made online shopping more expensive for consumers.

The Supreme Court’s 5-4 decision overruled a 1992 ruling that found the Constitution didn’t allow states to require businesses to collect sales taxes unless they have a substantial connection to the state. But in recent years, several Supreme Court justices suggested the moment was ripe to review the 1992 decision, prompting South Dakota to pass a law forcing online stores to collect a 4.5% sales tax if sales and employee count hit a certain threshold. And it sued Wayfair, Overstock.com and Newegg, which won in lower court decisions.

Amazon, a frequent target of President Trump’s over sales tax collection, was not involved in the Supreme Court case. It collects sales taxes on purchases made on its site from its own inventory but does not do so on behalf of third-party sellers selling products on its marketplaces platform. In recent years, Amazon has built distribution centres in many states and last year bought Whole Foods, giving it a physical presence in many states anyway.

About the Author

Amin Lalani
Amin Lalani is a subject matter specialist in Internet Retailer with several articles and research paper published so far. He has done M.Phil from IoBM in Marketing with emphasis on Internet Retailing. Besides academia he has various other certification like SAP, Google Analytic, Microsoft Small Business Solution Provider and more.

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