Slowly but surely, more and more states are starting to collect tax on our Amazon purchases. Minnesota fell victim to this on October 1, 2014. I went to purchase 3 Amazon Fire TVs for Christmas presents and an additional $20 was being added to my total! I cancelled my order and headed over to BestBuy.com. I figured I might as well earn Best Buy points if I’m going to have to pay taxes now. That got me thinking, how much are Best Buy points worth?
Best Buy advertises that you earn 1 point per $1 spent. This is similar to most credit cards we see on the market. Once you earn 250 points you receive a $5 certificate to use towards your next purchase. This means Best Buy points are actually valued at $0.02 a piece, or 2% cash back. If you pay with your Best Buy card, you can often times select up to 5% cash back if you don’t choose the 6 months financing option.
Not too bad Best Buy! Keep in mind that these rewards are earned with any form of payment method that Best Buy accepts. You don’t have to use your Best Buy card to earn the points. It’s free to register and collecting points works both in stores and online.
Eventually Amazon will have to start collecting tax in all 50 states. Once that happens, I fear that Amazon will start to lose some of its customer base. Don’t get me wrong, there will always be Amazon loyalists because their customer service is far superior than Best Buy’s and there’s always that convenience of having your items delivered to your doorstep.
I’m sure there’s others out there that would rather collect points than receive nothing for shopping at Amazon (unless you’re putting your purchases on the Amazon branded credit card).
Best Buy does price match Amazon now. Just bring your smartphone into the store and show the cashier the cheaper price on Amazon. You’ll pay the same amount and collect Best Buy points at the same time!
I wonder if Amazon will eventually come out with a free points system for customers? Amazon does have their branded credit card, but Best Buy’s rewards program is free to join and you don’t have to pay any special way to collect the points.
Does Amazon charge tax in your state? If not, are you going to continue shopping with them once they do start?