What Does Amazon's New Strategy Mean for Main Street?

Farhad Manjoo probes the internet retail giant's shifting strategy on the geographic distribution of its facilities, and wonders what the implications are for local retail once Amazon can offer same-day delivery.

2 minute read

July 13, 2012, 11:00 AM PDT

By Jonathan Nettler @nettsj


For years Amazon fought efforts by states to collect sales taxes from its customers, relying on shipping goods from distribution centers located in "faraway, low-cost
states" to customers in "more populous, high-cost states" to skirt tax laws. But in recent years, the company has stopped fighting the sales-tax war and will soon be collecting taxes from the majority of its customers. 

Why the shift you ask? "Now that it has agreed to collect
sales taxes," writes Manjoo, "the company can legally set up warehouses right inside some
of the largest metropolitan areas in the nation." And with hundred of millions of dollars invested in new facilities in New Jersey, Virginia, Texas, Tennessee, Indiana, and California, Amazon seems to be doing just that, in an ambitious effort to achieve the ultimate in speedy service - same day delivery. 

"It's hard to overstate how thoroughly this move will shake up the retail
industry," says Manjoo. "Same-day delivery has long been the holy grail of Internet
retailers, something that dozens of startups have tried and failed to
accomplish. (Remember Kozmo.com?) But Amazon is investing billions to make next-day delivery standard, and same-day
delivery an option for lots of customers. If it can pull that off, the
company will permanently alter how we shop. To put it more bluntly:
Physical retailers will be hosed."

And the next logical question would be, what happens to our commercial districts with physical retailers under increased pressure? Will our shopping districts become home to endless storefronts of automated "lockers"? Will self-driving cars deliver our packages of diapers directly to our offices? 

Friday, July 13, 2012 in Salon

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic place names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight