Economy increasing the online shopping rate

Discussion in 'Politics, Religion, Social Issues' started by rasmasyean, Feb 24, 2009.

  1. rasmasyean macrumors 6502a

    Joined:
    Jul 11, 2008
    #1
    From a WebPro Newsletter I got...

    Consumers Are Going Online

    First we talked about how the current economic situation is driving more consumers online as opposed to in-store. Federman cited an AdAge piece stating that Web sales were growing at five times the rate of brick and mortar stores, a trend that the economy will no doubt fuel further. "The Web represents an unprecedented choice for today's consumer - a broader spectrum of product options, features and prices to compare than physical stores offer," says Federman. "The sheer time savings, and the saved transportation cost make the Web an increasingly preferred venue in which consumers are shopping."

    "From the retailer side, the economy is clearly causing brick and mortar chains to evaluate the profitability of every store, and close those that are under-performing," he continues. "It's hit everyone from Best Buy whose Web growth outpaced in-store sales to Starbucks. For the consumer, fewer stores is another driver to the Web." ​


    I guess now even grandma has finaly got onto the internet after the nest egg pops! :p
     
  2. drewsof07 macrumors 68000

    drewsof07

    Joined:
    Oct 30, 2006
    Location:
    Ohio
    #2
    What did they expect? Retail stores are expensive. They have to build the store or pay a lease, ship products to the stores, staff the store, etc. Online stores like Amazon staff far fewer people and are therefore able to offer lower prices to the end user. One drawback is that those retail jobs could start disappearing.
     
  3. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #3
    The big appeal of course is no sales tax. That is something that is going to have to be addressed before much longer. It's really crippling small communities.
     
  4. iJohnHenry macrumors P6

    iJohnHenry

    Joined:
    Mar 22, 2008
    Location:
    On tenterhooks
    #4
    Bricks and mortar stores is a close parallel to the Decaying Cities thread.

    With the advent of virtually total electronic communication, what need do we really have for either??

    The concept of a City might soon become a thing of the past.
     
  5. SactoGuy18 macrumors 68020

    SactoGuy18

    Joined:
    Sep 11, 2006
    Location:
    Sacramento, CA USA
    #5
    Some brick and mortar stores will still be around--especially clothing and large applicance stores. The reason is simple: people like to try out clothing and see large applicances for themselves.
     
  6. yojitani macrumors 68000

    yojitani

    Joined:
    Apr 28, 2005
    Location:
    An octopus's garden
    #6
    Not just that. Amazon is into daylight robbery when it comes to remunerating publishers. My journal pulled out of Amazon completely. It sells for $8 but after all was said and done, we got $3 per book sold. I use amazon a lot because I don't have much money, but at the same time, i feel terrible for publishers.
     
  7. NT1440 macrumors G4

    NT1440

    Joined:
    May 18, 2008
    Location:
    Hartford, CT
    #7
    What kind of tax is it that I get charged for then? :confused:

    ( I really don't know)
     
  8. rhett7660 macrumors G4

    rhett7660

    Joined:
    Jan 9, 2008
    Location:
    Sunny, Southern California
    #8
    I am paying sales tax on pretty much everything I order on the web......
     
  9. NT1440 macrumors G4

    NT1440

    Joined:
    May 18, 2008
    Location:
    Hartford, CT
    #9
    Perhaps hes from another country?:confused:
     
  10. rasmasyean thread starter macrumors 6502a

    Joined:
    Jul 11, 2008
    #10
    They are working on making that a bit easier "digitally".

    http://www.youtube.com/watch?v=2tKj_zscwNE
     
  11. rasmasyean thread starter macrumors 6502a

    Joined:
    Jul 11, 2008
    #11
    I think you will still need "ports" where ppl aggregate because of convenience and jobs. Goods are still going to be a big part physical in nature. You can live on just information. And imagine how much more energy we would use if everyone spread out evenly accross the country.
     
  12. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Joined:
    Dec 25, 2003
    Location:
    Northern Virginia
    #12
    According to some news reports, Congress will be looking to address that issue as early as next week. Non too soon IMO.

    Have not read that thread as of yet.

    Working in a B&M store; I see it day in and day out - folks that want the knowledge and the ability to touch and feel the product. In my stores case we are close to or better than some of the internet sites - save when some sites are just dumping stuff of late to get any money in.

    In some cases they walk away to just buy tax free. Even though under state law they are required to pay the use tax at tax time.

    Sorry to hear your plight about publishing.

    Even more so about wanting to save what little dollars we do have.

    But the economic downturn has given me a new perspective on the B&M world and the internet. With free hipping and no sales tax - the savings can be great depending on what you buy on the net.

    But many folk go to their B&M stores to look, touch, get help on what they will end up buying on the net. I have been guilty of the same till the last couple of years.

    Maybe more so this year I have taken the approach that by not spending my limited dollars locally - I am hurting the the tax base locally - and more so the jobs that drive much of my local tax base.

    Rob sales from the local B&M stores; and you will see them close or downsize. Means that folks loose their jobs. Means that if they own a home, they go into foreclosure. Given the rates of foreclosures of late it means a depressed tax base.

    A depressed tax base means a cutting of services. Which services to cut? That depends on which side of the fence you sit on. Eliminate dog parks for dog lovers? End the upkeep of soccer fields for all the soccer-parents and their kids? Charging entrance fees to parklands that our tax dollars already paid for in bonds and other taxes?

    Spending more of our dollars locally, will help in the end. It keeps jobs. It helps keep homes in those that can afford them, if they have jobs.
     
  13. rasmasyean thread starter macrumors 6502a

    Joined:
    Jul 11, 2008
    #13
    I see a lot more chat support which also helps online sales people link you to descriptive text. Perhaps this trend and video chat will start moving into the broader retail sectors with bandwidth climbing and all.

    Also, Silverlight 3.0 will be releasing soon with a good 3D engine. Maybe this will also close the gap between "seeing it" from different angles. I imagine it would suffice for many products to rotate it around and have hotspots for descriptive links. In some cases offer an even better experience than touching it with a sales person next to you. e.g. I can tell you now that the "Geek Squad" are not geeks. Not meaning offense to anyone who has been one...but it's understandable because of course Best Buy needs to hire some "kids" due to budgetary constraints. Same with other stores.

    I don't think of all this as losing jobs, however. More like shifting job descriptions. One can say that many "farming" jobs were lost during the agricultural and industrial revolution. However, the world as a whole is not worse off by that loss of jobs. It will always take some time for transition. The "weaker" workers will take longest and some of them will probably even become poorer because of outdated skill sets. The "stronger" workers will sometimes even migrate to new opportunities that give them renewed energy and become richer. Hey, if all you did your whole life was work a plough with and OX… well... It’s really about how you approach your transition. If you want to retrain, or love it so much that you stick with it, or bridge your skills to something else…like online sales chat! LOL. Though you may have to compete with Indians who work for dheaper. haha
     
  14. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Joined:
    Dec 25, 2003
    Location:
    Northern Virginia
    #14
    You have a good point about "chat support". But from what I see there are those that want to know what every button does, only to buy online for what ever reason. Then there are those that want to touch, feel, and see the product that they will but online - B&M stores can can not survive if they will only be a showroom for online ordering. Silverlight 3.0 will NOT replace touching a camera, or seeing the difference in how an HDTV screen really looks.

    About your comment about the "Geek Squad"; the smaller shops have folks IMO that have a passion on what they are dealing with. I agree at some point in your observation.

    More on your comment about "shifting job descriptions"; but it is different with the unleveled playing field with the online shops and B&M shops when it comes to tech goods. I see it day in and day out from those that want to touch, feel, and play with what they will end up buying on the Net. One of the reasons is the sales tax issue.

    Maybe in the next few weeks Congress will address that :)

    As to your comment about Indian workers... there are many companies that are seeing that Americans are valuing telephone support from the US now...
     
  15. hexonxonx macrumors 601

    Joined:
    Jul 4, 2007
    Location:
    Denver Colorado
    #15
    I order practically everything online. Clothes, shoes and electronics. Over the last few years, it is the way that I have purchased abot 90% of everything I buy.

    At BestBuy, I order online and pickup at the store. At Gap Online, I order everything from jeans to shoes to belts, even a leather jacket. I did have to exchange the leather jacket because it was too large. Exchanged it without any problems. Shoes always fit and look just like what I saw online. When I have things delievered, I have them shipped next day so I don't have to wonder when they will show up.

    I prefer to shop this way so I don't have to deal with pushy sales people or someone watching me throughout the store. It really has nothing to do with the economy.

    I wonder where I find online stores with no sales tax. I have always paid tax on everything, even iTunes.
     
  16. CorvusCamenarum macrumors 65816

    CorvusCamenarum

    Joined:
    Dec 16, 2004
    Location:
    Birmingham, AL
    #16
    Don't some states [try to] collect tax on items purchased online? I don't mean examples like Rhett's case, where I'm guessing some of the companies from whom he orders are based in his state. While I can't speak for others, Alabama has a line on the state tax return where you're expected to declare the dollar amount you spent online and then cough up 4% on it.

    Apple has a business presence in every state, so they are legally required to collect that state's sales tax.
     
  17. rasmasyean thread starter macrumors 6502a

    Joined:
    Jul 11, 2008
    #17
    I remeber a time when Dell didn't charge tax too. Now it seems they do. It looks like more and more shops, at least big ones...establish a presence in every state.
     
  18. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #18
    Apple has a business presence in Missouri, (2 Apple Stores in St. Louis, and I think 1 in Kansas City) but I've never paid tax on iTunes purchases.

    Fortunately, a lot of online stores I frequent (Newegg and Amazon) don't have a business presence in MO so I don't pay sales tax.
     
  19. chrmjenkins macrumors 603

    chrmjenkins

    Joined:
    Oct 29, 2007
    Location:
    CA
    #19
    Technically, you're liable for sales tax in every state that charges it, regardless of where you order from. It's called Use Tax
     
  20. Zombie Acorn macrumors 65816

    Zombie Acorn

    Joined:
    Feb 2, 2009
    Location:
    Toronto, Ontario
    #20
    Congress will be voting on a sales tax via web pretty soon here, I wouldn't be surprised if they jack it a few points over B&M for good measure.
     
  21. drewsof07 macrumors 68000

    drewsof07

    Joined:
    Oct 30, 2006
    Location:
    Ohio
    #21
    I'd be perfectly happy to pay a higher sales tax if I wasn't charged income tax :D
     
  22. rhett7660 macrumors G4

    rhett7660

    Joined:
    Jan 9, 2008
    Location:
    Sunny, Southern California
    #22
    True.... very true...
     
  23. Zombie Acorn macrumors 65816

    Zombie Acorn

    Joined:
    Feb 2, 2009
    Location:
    Toronto, Ontario
    #23
    I would also, but I expect a free ferrari to land in my driveway before that happens. :D
     
  24. drewsof07 macrumors 68000

    drewsof07

    Joined:
    Oct 30, 2006
    Location:
    Ohio
    #24
    Some states do this, Tennessee being one of them. Albeit this only applies to the State income tax, but it still helps keep individual costs down :)
    I couldn't find a really good link, that one just says that they tried to reintroduce income tax and the voters reacted very negatively.
     

Share This Page