It is incredible
how people these days are deciding more and more to shop online instead of
going to the actual store to feel and try the clothes own. Consumer are become
in some way “lazy” when it comes to drive to the mall, stand and do the long
lines in the cash register. But there is a better catch to this whole new idea
of online shopping and laws come in hand with this good news.
Since the
beginning of Internet shopping there has been a complexity of how to tax
online. The on going question of who to tax? Should the tax be collected in the
state where the goods are shipped or where the goods are received? Is so hard
to know this rules but now all of this seems to be over thanks to a law that
may change the different ways we see online shopping.
In the
state of California there is a new law concerning Internet retailers. They
would collect taxes as high as 9.75% when a good is purchased over the Internet.
As this law has been carefully managed many more states seem to soon follow
this adjustment for taxes.
How Internet
retailers would expand and grow!
After doing
a little bit of research I was able to emphasize how this can benefit
incredible the online retailers and how people would start shopping online more
and more. I was able to understand how an online competitor such as GILT is
capturing the market of selling clothing online. This is a high retail store that sells many high-end
designer clothes, gowns, purses and some of the finest and most costly items in
the market. As we understand the more costly and item is the more money we tend
to pay for its tax, but what about just paying a shipping cost and receiving
your item in a couple of days? This seems a more attractive option for these
expensive little things we like to indulge ourselves with! at least to me. This
is how GILT and many of these high-end online stores would build a more solid empire,
and for personal experience how I see myself shopping there.
The incredible adjustments that taxation is making these
days to open doors to more giants online specially for the clothing industry
would in some kind of way put little fellas on a scale and evaluate how they
would compete with this big guys. Little stores that used to give their
customers great forms of delivery would in some kind way have to step their
game up what would be next if every states implements better taxation? Where
would the actual clothing lines stand?
some links for you to learn a little of whats going on...
Fashionably yours...
AleRoman
That's interesting to look at taxation in the perspective of the fashion world. I do notice when buying online, it adds an element of convenience. Many online stores do use shipping as a competitive factor to stand out. Would you rather wait weeks or a few days. This is strong selling point, and many online stores try to make it their unique selling point. As you said, taxation is getting better allowing high stores to do better. This could compromise to some extent smaller stores that use shipping as their forte. A new unique selling point should be developed.
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