Political Factors of Amazon - Amazon PESTLE Analysis
Posted: Sun Jan 26, 2025 7:22 am
Political factors at Amazon
Political factors are some of the strongest determinants of the success or failure of any organization, especially a large multinational like Amazon. Let’s look at some of the ways that political factors such as tariffs, legislation, political stability, international trade agreements, and tax policies affect Amazon.
Government Policy : Government policies and regulations regarding e-commerce and online sales have belgium whatsapp number data a significant impact on how Amazon operates and its profitability. For example, prior to 2018, online retailers in the United States did not have to pay sales tax in states where they did not have a physical presence. This allowed companies like Amazon to pass on these savings to customers in the form of lower prices, encouraging e-commerce.
However, since a landmark 2018 Supreme Court ruling , the company has been forced to collect sales tax even in regions where it has no physical presence. This has not only curbed the growing enthusiasm for online retail, but also diminished the competitive advantage Amazon had over smaller e-commerce platforms.
Political factors are some of the strongest determinants of the success or failure of any organization, especially a large multinational like Amazon. Let’s look at some of the ways that political factors such as tariffs, legislation, political stability, international trade agreements, and tax policies affect Amazon.
Government Policy : Government policies and regulations regarding e-commerce and online sales have belgium whatsapp number data a significant impact on how Amazon operates and its profitability. For example, prior to 2018, online retailers in the United States did not have to pay sales tax in states where they did not have a physical presence. This allowed companies like Amazon to pass on these savings to customers in the form of lower prices, encouraging e-commerce.
However, since a landmark 2018 Supreme Court ruling , the company has been forced to collect sales tax even in regions where it has no physical presence. This has not only curbed the growing enthusiasm for online retail, but also diminished the competitive advantage Amazon had over smaller e-commerce platforms.