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What Was Behind The Borders Web Reversal?

Written by Evan Schuman
March 23rd, 2007

As Borders executives discussed the various reasons they severed their multi-year partnership with Amazon.com on Thursday, the most critical was the least expected: taxes.

As a pure online play, Amazon.com was an ideal long-term partner for Borders as there was no physical store conflict. But as the years passed, that initial advantage quickly turned into the Amazon Albatross, as the online retailer couldn't doing anything in-store, for fear of running up huge tax bills in various states.

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