Internet Sales Tax and UPS business.

[Brownslave688]

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.

Bingo.

For those of us that deliver we see if everyday. Where do we have the most deliveries?

Rich neighborhoods, young neighborhoods, and apartment complexes.

This isn't rocket science. Rich neighborhoods have more disposable income and wives that stay at home.

The other two are younger people. Once you get under 25-30 these people have just grown up with online shopping as a way of life. They will not notice any difference and continue to shop as if nothing happened.

There will be a few people stop shopping. They will be far outnumbered by younger people having more disposable income.

 

[upsman68]

If it takes the the delivery of TV cabinets away from me I'm all for it

 

[Delivered]

Most B&M stores will get smaller & carry less inventory in the store. You can come and and play with the demo product, make the sale and Best Buy, Macy's, etc will ship it to you just like Amazon. With smaller stores and little inventory on site will keep the overhead down and be able to match prices better.


Ship My Pants - YouTube

 

[pickup]

umm I hate to be a party pooper, but when it comes time to do your state tax forms, you are supposed to pay state taxes on your online purchases(those which didn't have the state tax taken out at the time of purchase).


And by the way, I am very wary of being audited by the any tax agency so I do pay any such taxes at that time so that there are no vulnerabilities in my tax form. I put the money aside in a separate fund so come tax time, I have the money to pay.

 

[InsideUPS]

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?

IMHO...the sales tax issue will not significantly affect (if at all) UPS volume. The growth of e-commerce will continue regardless of sales taxes.

E-commerce boost for UPS - News - Logistics Manager .

My supporting thoughts:

1) Convenience - We are living in a "convenience" minded society. Just look at all the drive-up windows at fast food providers, (McD. BK, Donuts, Pizza, etc).. I often pay $1.79 for a beverage at Burger King when I could actually buy a 1 liter container at a store for less.

2) Selection - Retail stores do not like to inventory items. The last thing that I want to hear from my local retail outlet is, "they can order it for me".. I normally let them know that I can order it also. UPS has traditionally done very well in a down economy...even before e-commerce become popular.. Reason...Inventory. It is NOT cost effective to inventory items. Shippers often use parcel delivery services for small orders to retail outlets .

3) Gasoline Costs - As gasoline prices edge toward $4.00 per gallon, many people would pay more in fuel costs than they would in sales tax to shop for and pick up that item.

4) Location - Many people are not located near retail outlets.

5) Age - Baby boomers and above simply want to order online and have it delivered directly to our nursing home.. : )

 

[purplesky]

On big ticket items like a Mac Pro or a nice tv or a nice Fender Strat this new online sales tax really sucks.

But nothing will change. Online sellers still have a huge cost advantage and will still be a better value.

UPS and FDX will not see a drop in volume because of this tax.

 

[Babagounj]

The fact that Amazon is opening large distribution centers for their projected same day delv service could mean then end for Best Buy ( whom they consider their main rival ).
Check out the list of every state where they plan on collecting the sales tax , that is where they are going to have a physical presents .

 

[Bagels]

The fact that Amazon is opening large distribution centers for their projected same day delv service could mean then end for Best Buy ( whom they consider their main rival ).
Check out the list of every state where they plan on collecting the sales tax , that is where they are going to have a physical presents .

Unless Amazon opens B&M show rooms, then no - it will actually help Best Buy. Few consumers purchase products off the Internet without seeing them first -- thus why B&M retailers such as Best Buy, Macy's, etc. have seen record foot traffic, but sluggish sales as consumers then purchase them off the internet for less money. Adding sales tax to Internet purchases will encourage more of these sales to take place at B&M.

 

[opie]

I think people will shop online a little less. I make many purchases online, usually Amazon. Amazon typically has lower prices, and in addition it's tax free. I'm a Amazon Prime member so I always get my orders in two days. So waiting a few days to get the item(s) is no big deal. But soon Amazon will be charging tax, so the price gap between online and in store will be smaller. So may be more logical to just go to the store, the same day to purchase what I need, instead of waiting a couple days to get the same item that basically will be almost the same price. Especially those who don't have Amazon Prime, some times orders may not ship out for days or a week with the free shipping option. I will still use Amazon, but not as much. This is why in those states in which Amazon is forced to collect tax, the brick and mortar stores are seeing an increase in sales. While Amazon's have taken a dip.

 

[sortaisle]

Internet sales tax will hit the wall in the House. It's a tax and Republicans want to be voted in again. They'll shoot it down.