[pahkah]

> Whenever I want to buy anything, I check Amazon first. 9 times out of 10 it's the same price as every other retailer with the added benefit of free shipping and free returns.

That's the problem! The issue is that Amazon forces sellers to raise their prices elsewhere, so that Amazon is the best deal for a shopper. But if Amazon didn't have the power to do that (if it didn't have a monopoly as the gateway to online shopping) then other retailers would be able to lower their prices.

That's the "tax" referred to in the article. By inflating prices across the board, but still ensuring that they're the least expensive option, Amazon retains customers and increases profits. Individual consumers choose it because it's the best deal, but the system as a whole loses out because prices are higher than they "should" be.