California business affected by Amazon pulling out
FRESNO, Calif. (KFSN) -- Some of the ten thousand businesses affected by Amazon pulling out of the state are right here in the Central Valley. And losing Amazon as a partner could potentially leave them bankrupt. Action News spoke with one business owner who learned just before the deadline that she was spared because of a technicality.
"But that's my favorite right there."
LaDonna Snow owns a successful gymnastics clothing brand in Clovis that includes flashy and stylish leotards. News of Amazon's decision to leave thousands of affiliates had her in tears all day Thursday. The company told it affiliates on Wednesday "We will terminate contracts with all California residents that are participating in the Amazon Associates Program... "
"If it wasn't for family and the wonderful staff that I have here I might have to move to Nevada. Frankly." said Snow.
Now she won't have to go anywhere. LaDonna learned late Thursday night that she fell into a different category with Amazon that won't end up costing her money or jobs.
"An affiliate is somebody that sends someone to Amazon to buy things. We actually have a merchant site within Amazon, that people go to. And we fulfill the orders and then ship it out. Then Amazon pays us." said Snow.
Snow claims sales through Amazon accounted for roughly 10% of her overall income in 2010 -- which totaled $1.7 million. The business owner who employs 30 workers says she would have had to lay off at least three to stay afloat.
"It's kind of petty of Amazon pull out of California to tell you the truth." said Fran Blackney.
Fran Blackney is with the Clovis Chamber of Commerce. The chamber decided not to take an official stance on the matter because she says both online and brick and mortar stores would have been affected.
"The advantages of online is you don't have to leave your house and maybe not pay sales tax. But the disadvantage is that you have to pay shipping and freight and you have to wait 2-3 days to get your merchandise. Where as if you go directly to a brick and mortar store you get instant gratification and you're not paying shipping and handling." added Blackney.
Blackney adds the Valley affiliates who are dropped from Amazon might not make it through the next fiscal year. At least five other states have laws forcing internet retailers to collect sales tax for them. Overstock.com is smaller version of Amazon and is also severing ties with thousands of affiliates in California.
jerry brown, california budget, state, tommy tran
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