Internet Sales Tax and UPS business.

[BMWMC]

This is just some of the information available about the tax.
Internet sales tax bill cruising through Senate; will soon hit roadblock in GOP-led House - The Washington Post

I listen to NPR's Diane Rhems Show podcast and found it very informative.

Debate Over Taxing Internet Sales | The Diane Rehm Show from WAMU and NPR

It all but a done deal with just detailed to be negotiated around the final bill/law. The question is how much will this affect UPS daily package volume. UPS is more weighted towards retail residential deliveries were as FDX ground is heavy with commercial accounts. FDX home delivery falls into the same category as UPS but is really a small spec in comparison.

Could UPS lose a half million to 1 million package a day? Internet sales will keep growing in the aggregate but those TV, AC units, Gym equipment and a whole host of high dollar household goods won't be as cheap or cheaper than the local stores anymore.

Thoughts?

 

[Notretiredyet]

Don't believe the tax will change the way people use the Internet to shop. Many including myself do it online for convenience and having to pay tax is a non issue. It was just a matter of time till the government would close this tax loophole.

 

[over9five]

I agree with Notretiredyet. I'm big on paying extra for convenience.

 

[BMWMC]

I agree with Notretiredyet. I'm big on paying extra for convenience.

Would you pay $50 to $100 for convenience?

 

[HEFFERNAN]

No matter where you buy it, online or a brick and mortar store, the price will be more comparably even now.

This would be a definite win for brick and mortar establishments, so I feel UPS and FedEx will feel a pinch.

Maybe the states can finally work their budgets and stop useless spending BUT that is just wishful thinking !!! lol

 

[over9five]

Would you pay $50 to $100 for convenience?

Good question.
Being a UPS driver who works many, many hours, I feel my time (spare time or off time) is worth a LOT! The question will have different answers for different people. A housewife my feel $5 is too much to pay for convenience.

To answer your question for ME, paying extra for convenience would probably stop at about $40.....

 

[Brownslave688]

Online shopping started for most people as a way to save money for most people by not paying taxes.


Now it's just a way of shopping for most. I think short term 6-12 months. Some will balk at making purchases. After Xmas time when EVERYONE buys online no one will think twice about it.

 

[Bagels]

Online shopping started for most people as a way to save money for most people by not paying taxes.


Now it's just a way of shopping for most. I think short term 6-12 months. Some will balk at making purchases. After Xmas time when EVERYONE buys online no one will think twice about it.

Strongly disagree.

Places like Best Buy & Macy's are reporting record foot traffic, but they've become Amazon.com's display room. When Amazon's forced to start collecting sales tax on big ticket items such as TVs, many of its consumers - who've walked into Best Buy to check the TV - will simply buy it from Best Buy instead. That's especially true if Amazon begins passing some shipping costs onto the consumer, which is widely expected.

Transitioning toward sales tax collection will undoubtedly hurt - but certainly not destroy - eCommerce.

 

[Jackburton]

I've bought everything from dog bones to TV's from Amazon. I currently am enrolled in Amazon prime which is $79.00 a year. Convenience to me is going to the store, picking it up, and coming home with it same day. I shop Amazon because they generally have lower base prices and no tax (which is 7% here). If I have to start paying tax on my purchases, I have a feeling I'll be doing less online shopping, especially for big ticket items.

An example would be BestBuy, who has suffered a lot due to people going in the store, looking at the prices, seeing it the same price on Amazon, yet get free shipping and pay xx% less due to no tax. Add the tax bill on it and the free shipping means nothing as you're holding it, that's one less purchase I make on Amazon.

 

[Jackburton]

Strongly disagree.

Places like Best Buy & Macy's are reporting record foot traffic, but they've become Amazon.com's display room. When Amazon's forced to start collecting sales tax on big ticket items such as TVs, many of its consumers - who've walked into Best Buy to check the TV - will simply buy it from Best Buy instead. That's especially true if Amazon begins passing some shipping costs onto the consumer, which is widely expected.

Transitioning toward sales tax collection will undoubtedly hurt - but certainly not destroy - eCommerce.

Beat me to it.

 

[Jackburton]

I'd like to add, for those states who don't have sales tax, imagine yourselves suddenly being taxed at 7% on pretty much everything you purchase besides food. For those of us that do a majority of our shopping on Amazon, that's what it will feel like. I just thought about my contact lens orders that have totaled 600 bucks for the family this year would be taxed also.

 

[TUT]

I don't think it's going to hurt online sales much at all. Perhaps a little blip and then back to normal. I am also all for this tax, we're bleeding local communities and states because of this difference.

 

[Coldworld]

No matter where you buy it, online or a brick and mortar store, the price will be more comparably even now.

This would be a definite win for brick and mortar establishments, so I feel UPS and FedEx will feel a pinch.

Maybe the states can finally work their budgets and stop useless spending BUT that is just wishful thinking !!! lol

the brick and motor stores will sell more...great, the extra items they will sell will come ups or fedex....internet shopping is doing well, great....the items you purchase online will come ups or fedex...its a duopoly, and will continue to be into the future.

 

[Coldworld]

I'd like to add, for those states who don't have sales tax, imagine yourselves suddenly being taxed at 7% on pretty much everything you purchase besides food. For those of us that do a majority of our shopping on Amazon, that's what it will feel like. I just thought about my contact lens orders that have totaled 600 bucks for the family this year would be taxed also.

amazon has made it clear they agree and want the tax..

 

[Bagels]

amazon has made it clear they agree and want the tax..

Amazon doesn't "want" the tax - it just supports the legislation, mainly because it's launching B&M services across the country & will be in position of collecting it, anyway.

 

[Brownslave688]

Online shopping started for most people as a way to save money for most people by not paying taxes.


Now it's just a way of shopping for most. I think short term 6-12 months. Some will balk at making purchases. After Xmas time when EVERYONE buys online no one will think twice about it.

Strongly disagree.

Places like Best Buy & Macy's are reporting record foot traffic, but they've become Amazon.com's display room. When Amazon's forced to start collecting sales tax on big ticket items such as TVs, many of its consumers - who've walked into Best Buy to check the TV - will simply buy it from Best Buy instead. That's especially true if Amazon begins passing some shipping costs onto the consumer, which is widely expected.

Transitioning toward sales tax collection will undoubtedly hurt - but certainly not destroy - eCommerce.

U know what's funny amazon is one of the biggest proponents for an online sales tax.

 

[rod]

the brick and motor stores will sell more...great, the extra items they will sell will come ups or fedex....internet shopping is doing well, great....the items you purchase online will come ups or fedex...its a duopoly, and will continue to be into the future.

All I can say is if I order smaller stuff (shoe box size or less) from 10 different companies 6 will come Parcel Post, 3 will come Fedex Ground and one will come UPS. Thats the way it is around here. I very seldom have a UPS driver hit and run anymore.

 

[Bagels]

U know what's funny amazon is one of the biggest proponents for an online sales tax.

...because it has super thin profit margins and sees growth potential in traditional B&M services, including same-day delivery service, that will require it to collect sales tax. It really isn't a "proponent" - it's merely OK/supporting the legislation.

 

[barnyard]

I have several friends that get 2-3 packages every week from Amazon. I asked them if it would change their buying habits. All said, "No." They all hate shopping and it is easier to just click.

I suspect that will be the case for many people. The habit is ingrained. I would bet that many have no idea if they are saving money or spending more, they just are hooked on the convenience.

 

[Catatonic]

I have several friends that get 2-3 packages every week from Amazon. I asked them if it would change their buying habits. All said, "No." They all hate shopping and it is easier to just click.

I suspect that will be the case for many people. The habit is ingrained. I would bet that many have no idea if they are saving money or spending more, they just are hooked on the convenience.

Depends on what many means.

It is convenience and it is because it is cheaper.

I buy a lot of stuff at thrift stores and on ebay(mostly used but some new). If I can't find it there, I usually wind up at Amazon.