As someone in the UK, I'm quite happy for amazon to provide me with low cost items on this basis. The tax is fixed rate VAT here in the UK so everything I buy from a tax dodge means I'm effectively getting a small rebate against my nearly £3375 a month (including income tax, NI and VAT) contribution to the state every month versus spinning another 20% into VAT.
Well, the people who work in the fulfillment centers are poorly paid. The software engineers, managers, and other employees that work within the organization are generally paid very competitively with companies like google etc.