Amazon.com shuts down Colorado affiliates

March 9, 2010 by Chuck | 5 Comments

It’s rare when affiliate marketing makes the mainstream news, but Amazon.com is big business, so when Amazon shut down all their affiliates living in Colorado, it became national news.

As ZDNet says

The states are eyeing Internet retailer taxes as a way to balance budgets and giants like Amazon are in the crosshairs. The latest state tax battleground is Colorado, but the fight is likely to spread.

Amazon’s response to Colorado’s state tax issue—Governor Bill Ritter signed a bill that puts new restrictions and taxes on out-of-state retailers like Amazon—has been consistent. When things go against Amazon the retailer cuts its affiliate programs in that state.

Funny, Colorado affiliates get screwed while customers in Colorado can continue to purchase and not pay sales tax. It’s the Colorado customers who continue to purchase and not pay sales tax who are the issue for the state, not the affiliates, but the affiliates are axed so Amazon can say they don’t have any “retail outlets” in the state.

In Amazon.com

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  • Judi on March 14th, 2010 at 6:00 pm

    This is a big bummer for the affiliates in Colorado — there are about 10,000 of us and while Amazon doesn’t pay all that much — its really not the money. It’s the idea of it.

    Can you imagine how hard it will be for small entrepreneurs to a.) know where all their customers live, b.) keep up with the state sales tax for all states, c.) collect it and d.)report it and distribute it.

    A nightmare!! Almost makes me want to move!

  • Tal Fighel- WorkPlace LAWS on March 24th, 2010 at 7:55 am

    Well,

    If you are an affiliate who’s only source in income is from Amazon then this is a big hit in the face for you.

    I mean, imagine that you are doing well online and your city decides to shut you down and you can not do anymore business online, imagine what this would do for you.

    It is pretty frustrating but the only option for those who are doing well with Amazon is Colorado is to move to another state.

    That is the best solution for them. If this would happen to me, I would move too.

    Tal

  • Kevin on March 31st, 2010 at 3:04 pm

    We all love promoting amazon products but if i was sack because of the dispute with the government over taxes . I would try other affiliate program .

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