Santa Shopped Online This Year 133
An anonymous reader writes "ZDNet is reporting on another blockbuster year for online shopping. Online shopping was up almost 30 percent over last year." From the article: " Clothing was the top seller in terms of dollar amount, at $5.3 billion total, up 42 percent from last year's revenue, the report said. Computer hardware and peripherals showed the most growth, 126 percent, at $4.8 billion. Consumer electronics was the second fastest growing category, garnering $4.8 billion, up 109 percent. People spent $3 billion on books online, up 66 percent, and $2.3 billion on products in the toys/video games category of hardware and software, a drop of 9 percent from last year, the study found. "
So how long .. (Score:5, Insightful)
Re: (Score:3, Informative)
Re:So how long .. (Score:1)
I knew ya could.
KFG
Re: (Score:2, Offtopic)
Re:So how long .. (Score:1)
KFG
Fair tax... (Score:1)
Re:Fair tax... (Score:1, Insightful)
ends up 102 dollars better off, but (OH NO!) only after the
special (*cough* web-page only fudge factor) "prebate family
allowance" is added, in reality they'll be a lot worse off
It also looks really fair for a couple living on social
security, but (OH NO!) only after the (*cough web-page only
fudge factor) "prebate family allowance" is added, in
reality they'll be worse off
A family of 4 with one wage earner are much better off,
I'll agree. No issues here
Re:Fair tax... (Score:1)
You really should get something for that cough.
Re:Fair tax... (Score:1)
Nope, and since I am already familiar with the proposed system I knew where you were coming from. The system will eliminate some hidden taxes and not effect other taxes, hidden or otherwise, at all.
It would be a start, although I have philosophical objections in being forced to be a government tax collector in order to do business at all. These objections may well only be intensified by the fact of recieving financial compensation for doing so.
KFG
Re:Fair tax... (Score:1)
is the list of taxes to be abolished. What federal taxes won't it abolish?
Re:Fair tax... (Score:1)
I don't recall using that phrasing.
KFG
Re:Fair tax... (Score:2, Interesting)
If you run a business today you are a tax collector in every sense of the word. You withhold payroll taxes, you charge sales taxes, you file 1099s on interest and dividends you issue to ensure that the recipients pay the tax.
Businesses are already the main collectors of tax. Many even wind up paying $10,000 a year or more for accountants and accounting software to make sure they don't screw the taxes up.
The Fair Tax just simplifies the process by making all the federal taxes one simple to compute perc
Re:Fair tax... (Score:1)
Indeed, and . . . I am not happy about it.
You withhold payroll taxes. .
Not even when I owned a brick and mortar, although I have had to deal with that issue when responsible for someone else's business.
The only legitimate challenge to the fair tax I've ever heard was from the man soon to be governor of Virginia, Tim Kaine.
Well, you've just heard one that goes to a deeper level than the mere difference between graduated and flat
Re: (Score:2)
Re:So how long .. (Score:2)
Re:So how long .. (Score:1)
Don't forget that most people aren't proposing that we actually eliminate sales tax, and in most states food and clothing (which take up most of the lower income class earnings) is not taxed. If sales tax were to be eliminated, I would be in favor of simply making food and clothing purchases tax ded
Re:So how long .. (Score:2)
That's precisely the problem.
A family unit making $30,000 a year paying 10% in taxes likely can't spare that $3,000, while the family unit making $300,000 a year is far more likely to be able to spare $30,000 for taxes.
North Carolina already does... (Score:4, Interesting)
Re:North Carolina already does... (Score:2)
Not really... (Score:2)
Re:So how long .. (Score:3, Insightful)
So was income tax, once upon a time [wikipedia.org].
Of course, in today's environment, being unconstitutional doesn't seem to stop anyone anyway.
Re:So how long .. (Score:2)
It sucked while I lived in tennesee since just about every retailer had a distro center in Memphis because of fedex.
Re:So how long .. (Score:2)
Re:So how long .. (Score:1)
Re:So how long .. (Score:2)
before the gov't demands all those juicy sales taxes? You know its coming, especially after the huge growth in online sales every year.
Some companies, like BestBuy, already collect state sales taxes. However, when they offer free shipping like recently, it's still a great deal. Point-and-click shopping, no money spent on gasoline or time wasted dodging soccer moms in the mall, and let the UPS guy worry about road conditions.
Re:So how long .. (Score:1)
Thanks a lot buddy!
---ups guy
Not for a while, though. (Score:2)
Remember, there are over 44,000 sales tax jurisdictions on all 50 states, and betweeen:
1. Trying to figure out where the buyer is located to get the exact right sales tax level.
2. Trying to disperse the sales tax revenue back to the local jurisdiction.
Re:So how long .. (Score:2)
before the gov't demands all those juicy sales taxes?
Could some politician in that "pro-Internet tax" camp please explain to me how online mail order materially differs from the catalog mail order that has been practiced by the likes of Sears for over a hundred years?
Re:So how long .. (Score:3, Insightful)
That's Odd... (Score:5, Funny)
Re:That's Odd... (Score:2)
Re:That's Odd... (Score:1)
figures for pre-xmas only (Score:4, Interesting)
Clothing, eh? (Score:5, Insightful)
Re:Clothing, eh? (Score:1, Funny)
Re:Clothing, eh? (Score:3, Funny)
Re:Clothing, eh? (Score:1)
You got a big catalog sent to you twice a year, and picked out what you wanted when you wanted, the goods were usually delivered quickly and returns generally weren't a problem.
This involved exactly the same logistical problems you are describing and they managed it quite well.
Its probably still available, the only change I see is that the online catalog is more upto date with stock and fads.
I agree. (Score:1, Informative)
Re:Clothing, eh? (Score:2)
For me, a gift is about the only time I would buy clothing online. If it's for me I don't buy online, because you can't quite tell what it will look like or how it will fit. But as a gift, those problems are the same whether buying online or at a store.
Re:Clothing, eh? (Score:2)
From a retail store owner (Score:5, Interesting)
Our inventory was better than or equal to more dotcoms. Our service was better (30 day DOA or defect replacement and lifetime labor). Our pricing was equal. Our hours were "better" since we were open 7 days a week.
What killed us? Sales tax. Our average sale in 2005 for about $230 (we sell paintball, skateboards and a ton of clothing). At 7%, we were consistently $16+ over per average sale than the dotcoms, even with instant acquisition.
2005 was our best year ever, so we're ending it at the top. Next year's outlook is bleak as many states want to raise sales tax and other fees. No thanks. In 2005 I paid more in sales tax than I did in payroll.
I'm not mad, actually -- the dotcoms are a great way to save money AND screw the state. I feel bad about my customers who loved our store, but I also know many bought online for the higher margin items that didn't need servicing (we were not competitive on those items as we had to price in future service and were always about 20% higher).
Local communities WILL suffer, though. Retail sales can be a big income base for the local community -- my mechanic performs almost 80% of his work for retail employees' cars. My dentist has almost 1/3rd of her patients working in retail. As retail suffers, these secondary markets will also suffer. But the positive is that the money we save in retail by shopping online should offer us more money to spend on other things.
It was a great 5 years, I did very well financially, and in the end, the state decided they didn't want me around -- otherwise they'd have ended the vile sales tax that is quickly ruining retail.
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:5, Interesting)
We didn't go out of business, we're making the choice to close our doors -- big difference. In every business, in every market, there comes a time when the old ways are obsolete. Ma and pa retail stores are pretty much antiquated, so I figured we'd best get out on top. One of my 3 stores closed up on its own (major cash flow problems and a very disloyal community), so I found my exit strategy and took it.
Also, since you so clearly identified the problem (and have great understanding of it) what would you propose a solution to be?
There is no solution. It is so convoluted, but in the end I have to blame government -- and I know I'll get flamed for saying that.
Look at it this way:
1. Our rent is outrageous -- almost $18-$25 per square foot. I fully blame this on the Fed's easy credit and a massive amount of "new" money entering the property market. There is no way my main store's rent should be $5000 per month -- but it is! This is in a town of 4000 people, mind you.
2. Our payroll is outrageous -- for every $1 I pay my employee, I have almost $1.50 to also pay to government and accountants (because of the tax laws). There's no way around it, especially since the warehouses who sell for the big dotcoms hire people either at minimum wage, or as contractors below minimum wage. I have friends who work at the big dotcoms in the warehouses and they're practically slaves.
3. We pay 7% to sales tax, plus the an additional 3.5% to accountants to handle the sales tax. One store files over 45 different forms a year for various government bodies. This puts us at a significant penalty over companies that don't have to pay this portion.
4. We pay a larger portion in shipping -- we don't move millions annually so we don't get the same discounts as the big guys.
But its ok! The dotcoms won because they were more efficient. Yes, my customers who lose me will lose great service and a very community oriented business, but if they weren't willing to pay the extra 15-20%, why should I take a big risk?
Retail is dead, except for the megacorps who have ways around the issues plaguing me. I recently found out 3 super stores in my neighboring town get a sales tax rebate -- they charge 7% to the consumer but get to keep over half of it. Yeah, that's fair.
Re:From a retail store owner (Score:2)
While the rest of the post was interesting, what does this have to do with anything? Customers don't owe you any 'loyalty', nor or ever.
Max
Re:From a retail store owner (Score:2)
That's insane (and hard to believe). Here in Toronto, population 5 million, retail rates are on the order of a dollar or two per square foot. Check here: http://toronto.craigslist.org/off/ [craigslist.org]
Re:From a retail store owner (Score:2)
I do have a question though and your story confuses me a little. So not having taxes for online shops is what killed you? I'm not sure I understand how you went out of business. If you could clear up the confusion that would be great.
I agree. I'm a little confused also. I'm pretty sure that last week dada was claiming to be running a programming bodyshop while doing pretty much the same diatribe about taxes. Strange. In my experience, the only time online beats brick-and-mortar is when the locals hav
Re:From a retail store owner (Score:5, Insightful)
That doesn't make any sort of buisness sense as you stated 2005 was your best year (and you also pointed out you did very well financially.)
Re:From a retail store owner (Score:4, Interesting)
There's an idea I have that many people throw good money at bad problems -- I won't do that. I'll lose about $100,000 closing the stores, but that's better than losing 4 times as much if things go sour. This year was exceptional because we finally overcame some starting costs (build outs and the rest) that I paid out of my pocket. I do NOT see good things ahead in 2006, and I don't want to take that big of a risk.
Re:From a retail store owner (Score:4, Interesting)
Sounds like you should just join em. Keep your invetory, buy cheap space where realestate is cheap (ie where window shoppers dont go .. or hell to start this venture move to your garage). Get a internet connection and open a online store ;-).
With some decent marketing using google adsense you will have customers in no time.
Re:From a retail store owner (Score:1)
People don't like expenses. (Score:1, Insightful)
Re:People don't like expenses. (Score:1)
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:1, Insightful)
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Re:From a retail store owner (Score:1, Insightful)
So are you just pissed off that the state forces you to collect and forward taxes to them while on-line retailers without a physical presence in your state don't have to? Or are you just pissed off at the whole idea of sales taxes to the extent that you're willing to go out of
Re:From a retail store owner (Score:5, Insightful)
http://slashdot.org/comments.pl?sid=172698&cid=14
Basically, he has an exit strategy. Something a lot of people with businesses/investments don't have. An exit strategy is essential and following it is even more essential. Personally, I applaud him for such a move. He might lose some money on it (Costs of shutting down, lost profits), but chances are good that he's probably going to be correct more often than not on the signals he's getting. Sometimes it's just better to quit while you're ahead, especially in a case like this when he can see some clouds moving in.
Re:From a retail store owner (Score:2, Informative)
It was our best year, yes -- the first 7 months were record setting, the last 5 months were the worst in history. Katrina, gas prices, and overall recessionary valleys lead us to make the choice to downsize and regroup for 2007.
I'm not pissed that we pay taxes and dotcoms don't -- I don't think anyone should. I would hate to see online purchases taxed. Taxes decrease purchases
Move to Oregon (Score:3, Insightful)
Re:From a retail store owner (Score:1, Flamebait)
Riiight. It was the damn State! They forced you out of business!
OK, seriously. Look at this statement, and notice the inherent contradictions. You claim that the state forced you out of business, yet you state you had a great run and did very well financially. This doesn't make any sense.
And a note about sal
Re:From a retail store owner (Score:2, Interesting)
In 2005 I paid more in sales tax than I did in payroll.
YOU didn't pay the sales tax. WE (i.e., your customers) did! Sales tax is a no loss collection with you as the collection agent for the state. In fact, you could very well invest the money until it's due that quarter to make some profit. In my state, if you pay it by a certain time you get a (tiny) rebate. However, If you spent it on other things instead of keeping it separate and then had to scrape it together every three m
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:1)
There is only one thing in common among all of the business that he owns, which is that they all neatly coincide with whatever topics are currently on Slashdot. I think it is amazing that someone can own at least 365 companies (one for each day of the year), and still have financial problems that are caused by the government.
Re:From a retail store owner (Score:2)
So you did very well while you were being ruined ?
Re:From a retail store owner (Score:2, Interesting)
Yes. I pay minimum wage salaries, plus up to 66% profit from each project. My lowest paid employee works 15 hours a week and takes home about $65,000 annually (minimum wage plus profit sharing).
On top of that, I am the lowest paid of my entire staff (including bonuses, profit sharing and dividends). So don't think I am some rich bitch. I drive a 1996 Toyota Corolla with no power accessories.
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:2, Interesting)
Your lowest paid works 15 hours a week for $65k a year! Sweet Jebus. Perhaps you're paying your staff a little too much.
If you check the guy's comments from last week, none of the numbers ever add up. He pays people minimum wage, yet they make huge salaries, but the government takes it all, but his employees love it, etc., etc. Perhaps he's exaggerating a little bit.
Re:From a retail store owner (Score:2)
Re:From a retail store owner (Score:2, Interesting)
We're reviewing our retail businesses for 2007 -- we might decommission our big stores and open a large quantity of tiny shops where the manager is also a significant owner (30% or so), so that we can tie the pay to the ma
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:2)
I say this from an area where that sort of thing is a BIG problem.
Re:From a retail store owner (Score:1)
Re:From a retail store owner (Score:2)
Actually America was found on abundance of cheap slave labor. So was capitalism, so I guess that makes it a natural choice for the USA.
Mod me troll if you want, but the above statements are still true.
Re:From a retail store owner (Score:2)
Re:From a retail store owner (Score:1)
Bollocks! You'd never be able to convince me that some guy can run a business AND have a hobby! It's IMPOSSIBLE! What's next? Next you're gonna tell me he's posting on internet forums on his days off!
Well, let's see. Last week he was running an IT sweatshop and complaining about taxes. Now, he's a retailer who is complaining about taxes. According to the AC, he may be a precious metals investor who no doubt complains about taxes. If you were doing all that and serious, would you be working to improve
Re:From a retail store owner (Score:1)
I can't put all my eggs in one basket -- the
Cracking down on use taxes (Score:5, Interesting)
Personally, I feel it would be a lot easier and trample on far fewer liberties to just have the web retailer collect sales tax.
Re:Cracking down on use taxes (Score:2)
Re:Cracking down on use taxes (Score:2)
Re:Cracking down on use taxes (Score:2)
Re:Cracking down on use taxes (Score:2)
What if I order a gift from an online retailer based in New York and have it sent to my brother in C
Re:Cracking down on use taxes (Score:2)
Most people I know don't file state income taxes much less keep track of people failing to pay sales taxes.
Secondly, you have to remember that many states don't have sales tax. The federal government is only responsible to interstate trade which by constitution can't be taxed (there is no federal sales tax you know) and the states are responsible for sales taxes if they want them. The
Hmm... (Score:1)
Re:Hmm... (Score:1)
What else could it be?
He brought me a really nice computer this year.
too easy, but: (Score:1)
Re:too easy, but: (Score:1)
I'm Willing to Bet... (Score:2)
Big items.... (Score:2)
Re: (Score:2)
Re:I'm Willing to Bet... (Score:2)
As for your survey, no flatscreen TV for me. I really don't have a use for one.
Don't you people watch tv? (Score:1)
Mega pixels!
The modern high-tech Santa Claus (Score:3, Interesting)
Santa would HAVE to shop on-line this year. It would be the only way that he could legally get the toys.
The old way of doing things, by having his elves make the toys, is now illegal. It constitutes "Intellectual Property theft". And WIPO, the RIAA and MPAA all joined forces to force Saint Nick to adhere to the New World Order.
Our now less jolly old Saint Nick has had to negotiate Patent Cross-licensing, Manufacturing, Trademark and Copyright agreements with all of the major corporate entities this year. This left little time to build toys; hence the need for Santa's web shopping spree.
Consequently, the Elves have had their prior work outsourced to the Elves in India, China, and elsewhere. Fortunately, they are still gainfully employed, as they have now become either high-powered Lawyers or PEB's (Pointy-eared bosses). This was a bit hard on the Elves, as they are normally good, by nature.
Santa's visits have also had to come to a stop. The delivery by flying Reindeer constituted illegal border crossings and smuggling, as well as breaking and entering via the Chimney. Now he has to use UPS.
The various State Attorneys General are also looking into the issue of whether Interstate taxes have to be paid, from previous years.
Somehow, I liked the old way of doing things (before this ad-hoc notion of "Intellectual Property" was created) much better.
Convenience is valuable, but not the only factor (Score:3, Insightful)
On the other hand, when I finally broke down and went to the local Mega Mall and went into the Books a Million to get a few fill-in gifts, I was surprised by how much being able to scan a large number of titles in a very short time was helpful in selecting gifts for hard to buy for relatives. While Amazon has their suggestive selling algorithms to suggest related information, seeing a book out of the corner of my eye frequently had me saying K--- would like this or TR would like that. It just isn't possible to present that kind of information as completely online as it is in a brick and mortar environment.
Important question (Score:2)
Not surprising (Score:2)
Re:Not a surprise (Score:1)
Re:10 reasons online shopping is superior. (Score:1)
My only reason for shopping online is the fact that a lot of stuff I can *NOT* find at local stores... like a lot of music or DVDs I like.
Re:10 reasons online shopping is superior. (Score:2)
11) Not having to be around idiots^H^H^H^H^H^H people.
Not having to deal with crowds of "consumer zombies" is the number one reason I now shop for practically everything online. If they're not blocking the aisles by standing 4 abreast in them whilst drool hangs out of their mouths as they stare vacantly at the latest retarded "singing arsehole" "novelty" item they're either backing into you, stepping across you (whilst attempting to read some packaging) or shouting about the amazing p
Re: (Score:1)