A lot of people are worried what will happen after President Turmp’s recent announcement that he want to go after Amazon and alleging that Amazon does not pay state taxes and President Trump want to do more to collect more taxes from Amazon and also threatening to impose more duties & taxes for Chinese import into United states. And how is this all going to impact you and other Amazon sellers?
Well my answer is that it is not going to impact you much. It’s going to impact American consumer more than you. Because if Amazon ends up paying more taxes to Federal Government or every State government where they have the presence, then Amazon may be forced to increase their commission from 15% to 17% or more so this is not something that will just impact you but millions of sellers. And how you going to react? You will simply react by increasing your price. You will end up increasing your product price from $15 to $17 or $25 to $27 etc. So end of the day American consumer is the one paying the price. Not you.
Similarly if US Government start imposing higher taxes and duties for Chinese goods import then again your final landing price into Amazon FBA will increase for your product and who will bare the final cost? Not you, but the American consumer. They are the ones who will suffer because all sellers will increase the price of their listings and it’s not you alone in this war or competition among sellers but all sellers are equally impacted.
However in some cases where some products may get marginalized specifically just because Mexican’s may be making that particular product also and now they will have an opportunity to enter into US market where Chinese goods of that certain niche may not remain competitive enough. But such products could be 10% max of the over all Ecommerce economy of United States where Chinese product would loose the leverage and Mexican or Colombian product of the same niche will have more leverage due to their tax arrangements with United States.
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