This allowed companies like Amazon

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However, the company is also affected by a number of external factors which may be beneficial or harmful to its overarching goal of providing its core value proposition and achieving profitability. Using this Amazon PESTLE analysis, we will examine these factors to determine how these various components affect the company. Contents Amazon Political Factors Amazon Economic Factors Amazon Social Factors Amazon Technological Factors Amazon Legal Factors Amazon Environmental Factors Conclusion Amazon Political Factors Amazon Political Factors - Amazon PESTLE Analysis Political factors are some of the strongest determinants of the success or failure of any organization, especially a large multinational corporation such as Amazon.


Let’s take a look at some of the ways political factors such as tariffs, investors email lists legislation, political stability, international trade agreements, and tax policies affect Amazon. Government policies: Government policies and regulations related to e-commerce and online sales significantly affect how Amazon operates and its profitability. For example, in the United States, before 2018, online retailers were not required to pay sales tax in states where they did not have a physical presence.


To pass along these savings as lower prices to the customers and encouraged e-commerce. However, since a landmark Supreme Court ruling in 2018, the company has been forced to collect sales taxes even in regions where it does not have a physical presence. Not only did this curb the burgeoning enthusiasm for online retail, but it also reduced the competitive advantage Amazon had over smaller e-commerce platforms.