I think the sales tax issue is a big one, but I'm not sure it's really that big.of a deciding factor for most consumers. I've been paying sales tax at Amazon forever (I'm in KY) and it hasn't discouraged me from using any of their services. I go with Amazon for the convenience and the fact that I can often find free shipping offers from them on many itmes, which more than offsets the amount of sales tax I have to pay.

That said, I could be entirely wrong. :) If I didn't live in a small town that was at least an hour away from all major retailers other than walmart, I might be using Amazon a lot less.

It would be interesting to see some statistics on their sales in states that pay sales tax vs. states that don't, provided they also took into account the overall spending patterns of the people in those states.