By SAMANTHA SARACINO
6 News Reporter
KNOXVILLE (WATE) - First, it was a sales tax controversy, allowing Amazon customers to be exempt from paying it and making Amazon items cheaper to buy.
Now the way Amazon does business is ruffling some feathers again.
The online retailer is opening more distribution centers, which ultimately would allow it to expand same-day delivery. The service is already being offered in several metropolitan areas.
That could make a big change in the world of online shopping.
The company already has East Tennessee facilities in Chattanooga and Cleveland. Warehouses in Lebanon and Murfreesboro are also slated to open this fall.
Flossie McNabb is co-owner of Union Avenue Books in downtown Knoxville. She says she has never seen eye-to-eye with Amazon and its former sales tax exemption.
"All we are asking for is a level playing field. We pay taxes, we pay sales taxes, we don't ask for special pricing," she explained.
According to a recent Slate article, Amazon hopes to expand same-day delivery to customers all over the country. McNabb says that news worries her.
"It is nothing but a travesty to small businesses and communities. It's going to put small businesses, small book stores, small grocery stores so they won't be able to compete," she said.
McNabb says it takes one to two days for special orders to arrive at her store. Most other stores locally, even the big box stores, don't usually offer same-day delivery yet either. That gives Amazon the upper hand.
"What they're doing is locating the capacity to make delivery much closer to people's home from the distribution center and ultimately that gives them the capacity to increase their speed with deliveries," said Dr. Bill Fox, with UT's Center for Business and Economic Research.
Fox says the online shopping trend has increased over the years and will continue to do so. He adds, however, this is not the end of the world for physical stores.
"I think it's going to be an increasing challenge for many local vendors, but I think there will be a role for them. It's just going to be a more competitive world," he said.
Fox says it is all about what is best for the consumer.
"If that means many of the orders take place online, so be it," he said. "Does that mean there might be some transitions in the way business is done? Absolutely."
6 News tried to contact Amazon, but our calls went unanswered. There is no word when the same-day delivery will go into effect.
Amazon will start collecting Tennessee sales tax in 2014.
"All we are asking for is a level playing field. We pay taxes, we pay sales taxes, we don't ask for special pricing," said Flossie McNabb, co-owner of Union Avenue Books.
"I think it's going to be an increasing challenge for many local vendors, but I think there will be a role for them. It's just going to be a more competitive world," Dr. Bill Fox said.
