It's long overdue that mail/online order get taxed like any other business. I look forward to it taking place uniformly across America. It will eliminate an unfair advantage online retailers have over local brick and mortar stores.
Yes, it would narrow the price gap a bit, but it won't cause Ritz Camera to rise from the dead like Lazarus, and it won't save your neighborhood small camera shop. If you still have one.
"Sales tax" is just one advantage that online vendors have over B&M stores. There are so many others that they would still have a big advantage over small local stores. If you take away this advantage for the online seller, then how will get rid of all these others:
- much larger selection
- much more convenient
- virtually anything made is available, and shipping is fast
- higher volume, which means lower pricing
- greater leverage with wholesalers, which means lower pricing
- no sales force, just packers and shippers
- no cashiers or check out personnel required
- no shoplifting costs, no security guard or package checking needed
- much lower payroll costs
- zero showroom maintenance costs
- no need to waste time with browsers
- no big stores to build or rent, just warehouse space
- automated order taking online 24/7 (except perhaps, Jewish holidays!)
- fewer returns, since it becomes less convenient to ship back
- customer doesn't have to pay for gas or tolls to get there
- customer doesn't have to "find a parking spot"
- customer doesn't have to pay for parking in congested cities
If you think the above aren't significant advantages for online sellers, then you are wrong. I remember visiting B&H a few years ago, to buy a bottle of a solution for cleaning slides before scanning. I think it cost $13. I was there less than 30 minutes, but their parking garage across the street charged me $40 for parking, because you only get your parking ticket validated for free parking if you spend $200 or more! Anyone who has ever been to their store knows there is absolutely no street parking in the vicinity. Lesson learned. Next time order it online.
One of my daughters actually works for Amazon in Seattle as a financial analyst. They actually let her
bring her dog to work with her! This might sound silly, but it actually works for Amazon. Needless to say, their employees love this, and it means they can pay less, or perhaps retain employees longer. Once you get used to certain benefits you cannot imagine not having them.
Brick and mortar stores have their own advantages, but it really is questionable whether these are truly advantages or just added costs for them:
- salesmen can push goods (only works if they are good at it)
- salesman can upsell (only works with customers who don't know what they want)
- salesmen can provide useful information for customers (if they are smart)
- customers get to handle your goods and create open box items
- customers, especially impulse buyers, get instant gratification
Forcing online vendors to become tax collectors for all 50 states does take away one of their advantages over brick and mortar stores. But there still are plenty of other advantages left for them that will result in all but the biggest and most successful retailers eventually closing their doors.
The brick and mortar camera shop is going to disappear just like the small book store, the the shoe repair shop, the neighborhood bakery, your local travel agent, and full service gas stations.
Quaint, convenient, and nice to have, but unable to compete for a wide variety of reasons.
