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Internet Sales Tax and UPS business.
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<blockquote data-quote="InsideUPS" data-source="post: 1129056" data-attributes="member: 31414"><p>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.</p><p></p><p>E-commerce boost for UPS - News - Logistics Manager .</p><p></p><p>My supporting thoughts:</p><p></p><p>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.</p><p></p><p>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 .</p><p></p><p>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.</p><p></p><p>4) Location - Many people are not located near retail outlets.</p><p></p><p>5) Age - Baby boomers and above simply want to order online and have it delivered directly to our nursing home.. : )</p></blockquote><p></p>
[QUOTE="InsideUPS, post: 1129056, member: 31414"] 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.. : ) [/QUOTE]
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