I mentioned this below, but I don't think location matters because Amazon doesn't provide cost of living adjustments. Location obviously matters from the individual's perspective, but from the company perspective it isn't factored into compensation.
Yeah they do. I was offered a job after a summer internship but told them I'd only work in California -- after first declining, they offered me a position in SF the next day. When I arrived in SF to start there was ~12% added to my salary for cost of living adjustment over Seattle.
Perhaps they do for SF, given how high cost of living is there. I was told that cost of living increases are not offered, but maybe they were only referring to Seattle?