Taxing Internet Sales

Dr. Mercury at Maggie's Farm has been discussing the current proposals to tax Internet sales nationwide.  Some states are already doing it; my own beloved Texas has bullied Amazon into assessing sales tax, effective this month.  One of the ostensible rationales is the need to "level the playing field" for brick-and-mortar stores (as if anyone believed the motive was anything but the obvious desire to glom onto more revenue), but as Dr. M and many commenters pointed out, the local stores are going to need a lot more than an 8% advantage to complete with the on-line prices and selection.

Here at Swankienda99, we rely heavily on Amazon for things we can't get locally.  Ever since Amazon expanded out of books and took on the entire retail market, I've depended on them for the many food brands my duopolistic grocery store won't carry.  They're an especially good source for brands that have fallen out of disfavor but haven't completely ceased production.  In fact, I buy most things from Amazon that I don't need to touch or handle ahead of time, from cookware to linens to small appliances.  They let me search efficiently for products by key word and best price, they provide customer reviews that take the place of indifferent sales clerks, and they get me my stuff in two days for a flat annual fee.  It just has to be a product that can be easily shipped, so it can't be too heavy, too voluminous, or too perishable.

In order to compete, local stores may have to specialize in that kind of tricky freight, or provide expertise and advice that can't be duplicated by my fellow customers on-line, or carry things for which I'll pay a premium for same-day availability.  Big-box stores have gotten used to being passive purveyors who make their customers wander through miles of aisles on scavenger hunts.  I wonder if future retail merchants won't have to function a bit more like knowledgeable brokers in order to lure customers back.

What do you guys buy online?

10 comments:

raven said...

We sell online- high end custom made specialty products we manufacture.
A major city might have one shop doing what we do. So nearly all our sales come from the web. We already are paying that 8% in crating and shipping- when they start charging sales tax that is going to be a severe impact on the end users pricing. But why should I care, I did not build this business......

bthun said...

"as if anyone believed the motive was anything but the obvious desire to glom onto more revenue"

Without a doubt...

"What do you guys buy online? "

I usually shop the web first for things other than perishables and hands on labor, unless the need for the widget in question is immediate and I can source it locally, now.

For hands on labor, especially skilled labor in areas where I do not have first hand knowledge of the service providers or a trusted referral, I will search kudzu.com or similar for customer reviews.

E Hines said...

One of the ostensible rationales is the need to "level the playing field" for brick-and-mortar stores....

I've always agreed that the playing field should be leveled, and I've just as always argued that the way to level this particular playing field is to lower the taxes on the brick-and-mortar stores. But I'm just a poor, dumb redneck conservative; WDIK?

I buy online because some of the things I need/want aren't (any longer) available even in the big-box discounters like Wal*Mart. WM used to sell, for instance, a particular brand of protein bars by the box; I'm a sucker for this brand. Now I get them at amazon.com because those folks sell them that way, or broker the sale between outfits that do and me.

Other things I want in bulk, but even in the Metroplex, I've not found a store conveniently located (did I mention I'm a lazy poor, dumb redneck conservative?), but the online bulk seller is no farther away than my laptop's keyboard.

Sometimes, the price is just better, even factoring in shipping costs.

Eric Hines

Grim said...

We buy lots of stuff online, but there are some categories of things we buy locally at stores. These include groceries, meals out, and farm supplies -- if I need a new spark plug, say, I'm not going to wait two or three days before I get back to mowing the pasture.

E Hines said...

...if I need a new spark plug...I'm not going to wait two or three days before I get back to mowing the pasture.

Get a goat, and sell goat's milk online instead of buying spark plugs anywhere?

[g]

Eric Hines

Grim said...

You laugh, but I've been trying to talk the wife into that for months. She's afraid they'll eat the fences.

bthun said...

Goats are known for NOT having discriminating tastes...

They will eat things that would surprise and/or shock most folks not familiar with em.

Anonymous said...

What we buy online: books, books, books, music, Russo-French tea, handtools that can't be found locally, plants that cannot be found locally (that is rapidly changing as xeriscaping becomes popular). Some clothes (thank you, Flea-bay!) that can't be found locally. One food item that cannot be found locally that we order in bulk. All luxury items, in other words.

Anonymous said...

Grrr, Anon at 5:27 is me. Hit send too soon.

LittleRed1

E Hines said...

She's afraid they'll eat the fences.

http://www.youtube.com/watch?v=-9RbWbYQ7C8

Eric Hines