Friday, January 11, 2013

Retail vs Etail

Should online sellers collect sales tax from all their customers - even those living out-of-state? The issue pits bricks-and-mortar vs Internet outfits.

1 comment:

  1. Karen, thanks for the informative piece. As a small brick-and-mortar retailer who has a web store and an eBay store, I've been on the fence about the online sales tax. I feel that it would help level the playing field between small retailers and online giants, and I think to some degree it's just an enforceable way to collect sales/use tax that consumers are supposed to be paying anyway. On the other hand, I was worried about the complexity and time commitment involved, not to mention the potential impact on my online sales.

    Upon hearing that free software solutions like TaxCloud are available, I'm not as concerned about implementation. I also appreciate the argument about local taxes contributing to local infrastructure, which we all use to deliver products around the country.

    The more I think about it, the more I'm for it. And if it means that online retailers might actually have to focus on - gasp - customer service instead of pricepoint as a way to generate sales and loyalty, so be it. Maybe they'll finally learn a thing or two from us little guys.

    Jessica Prokup, Owner
    Yellow Devil Gear Exchange