(WBIR) Fewer people are purchasing items from Amazon.com since states including Tennessee began imposing state and local taxes on the online retailer's sales, according to a recent study.
Tennessee is among 19 other states that started requiring these taxes in January, adding 9.25 percent to the cost of whatever consumers buy on Amazon.
Researchers at Ohio State University analyzed 245,000 people's purchases made between 2012-13 in five states that began collecting taxes on Amazon purchases - California, New Jersey, Pennsylvania, Texas and Virginia.
The study revealed that the addition of sales taxes dropped Amazon's sales by 9.5 percent. For purchases of $300 or more, Amazon sales plunged by 23.8 percent after the company began collecting those taxes.
Despite the dip in sales, Amazon still grew by 20 percent in the first quarter of 2014. Some items for sale on Amazon don't have to tack on the sales taxes; third-parties can sell their items on Amazon.com and can outsource all aspects of the exchange, including billing and delivery.