Dallas, Texas 05/01/2014 (FINANCIALSTRENDS) – Local Partnership in France for delivery
Colis Prive is a delivery company based in France. Reports indicate that the company sold a 25% stake in global e-commerce company Amazon.com, Inc. (NASDAQ:AMZN).
This is the company’s first French investment. If the report is confirmed, then it shows that AMZN is taking steps to increase margins and looking to create an efficient system, both in the US market as well as overseas markets. In the US market, while it has an enviable logistics operating, it along with other companies is looking at improving last mile delivery.
AMZN has focused on its global operations in the recent months. They have focussed on improving sales of Kindle in markets like Brazil and Russia. However, in other markets like India, they have tested models like using small Kiosks to manage their delivery.
The report, published in Le Journal states that the volumes managed by AMZN in France touches the fifty million limits. With such high levels, it makes sense for the company to look at a system of controlling the distribution network on their own. This will provide the company with higher profits. What this means is that AMZN can reduce the prices on its products significantly.
Sales taxes charged in the Florida market.
The company has started charging Sales Tax to consumers in Florida. As per a ruling published in 1992 by the US Supreme Court, companies can be made to collect taxes in states where they are physically located.
While AMZN is based in Seattle, it is now building two warehouses in Florida. The company has to collect the 6% tax enforced by the state of Florida. On a yearly basis, the company will collect close to$80 million in taxes. It is already collecting taxes in twenty one states across the US Market. This includes New York, Texas and California.