Friday, 20 July 2012

On-Line Sales Tax

The specter of an on-line sales tax in the U.S. is giving bricks-and-mortar jewellers increased confidence.  In Rob Bates’ recent article on the matter, he reveals that part of Blue Nile’s strength has been built while dodging sales tax in 50 out of 52 states.  Are you kidding me?  With e-tailers’ operating costs already so much lower than traditional retailers they’ve also been skirting state sales taxes all this time???  It’s bad enough we have to put-up with the misrepresentations that happen by online jewellery e-tailers!

Maybe it’s a good thing to be in little ol’ Canada.  We do put-up with competition from e-tailers, but if the Jewelers of America are successful in pushing the enforcement of sales tax it could put upwards pressure on pricing from the internet.  At the same time, as I wrote a few weeks ago, more and more internet e-tailers are opening up bricks and mortar depots because consumers seem to distrust purely virtual vendors.

Is it just me, or are internet jewellers now trying to be more like us?

No comments:

Post a Comment

Note: only a member of this blog may post a comment.