retail - Tag Archive

Taxes on Internet shopping

6 Replies Jonny Hankins

Here in the US the Senate just passed the Marketplace Fairness Act, and it is causing a great deal of debate on all sides.

I want you to pay taxes

Pay more taxes on your online goods

In the USA each state can levy its own sales tax. The rate is not equal across the states, for example here in Massachusetts I pay 6.25% sales tax on my new fridge, but if I drive to New Hampshire I do not pay anything. You can check out the differences on this interactive tax map.

The legislation described above aims to make Internet sellers collect the taxes due to the buyer’s state, something they are not currently required to do. At the moment I order my fridge from a New Hampshire based Internet retailer and I don’t pay any tax. In theory I should go and pay the state myself, but with online sales worth billions there is no enforcement and no queues (lines) outside the tax office.

Retail outlets argue that this gives online sellers an unfair advantage, but they in turn argue that the collecting and payment of state taxes under the new proposed regime would be expensive and extremely complicated. If they sell me the fridge here it costs a certain amount, they have to collect the tax and pay it to Massachusetts, but my friend in Florida pays a different amount and the tax is paid to the state there. Now this might not be too complicated a system for Amazon to manage, but a small Internet based retailer might not have the technical expertise or personnel to carry it out.

The proposed bill does exclude traders who sell under a million dollars of goods, but in today’s world that could still be a very small organization.

The technical difficulties of collecting the taxes through any other means seem insurmountable though, and the problem is very much related to the idea that borders can be controlled. States have different laws about selling many things, but if these things can be bought on the Internet and shipped to an individual house I cannot see how these rules can be adequately enforced. Is it a form of smuggling to buy something that you cannot get in your own state?

The result of the bill (if it passes although it does have bi-partisan support) will be that local sales tax will be levied at source and so the fridge will cost more. Maybe this is just and fair, maybe it will choke some smaller businesses, who knows?

What do you think?

How important is the quality of hosting to online retailers?

5 Replies Christopher Roberts

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With many brick-and-mortar businesses adding an online version of their high-street store to their portfolio, it’s important that firms choose the right web hosting service. With myriad services offering cheap deals, firms ought to be wary regarding offers that appear to be too good to be true – because they usually are.

On the surface, purchasing web hosting that costs £20 a month seems like a steal. In fact, it is a steal. However the only thing that is being nicked is precious uptime for online retailers, as the vast majority of cheap hosts go hand-in-hand with downtime.

Downtime – a retailer’s worst nightmare

For online retailers, downtime is especially important; every second of downtime is potentially a lost sale. Would you rather pay a premium for quality web hosting that is reliable and constantly up, or pay a third of the price for web hosting that keeps going down? In the long-term, it may cost more for firms to pay for cheap, but less reliable hosting.

In addition, utilising the services of a web hosting service in your time zone could be important, especially for smaller firms. Imagine if your store goes down but your hosting service is half-way across the world. This is certainly not ideal for any stores looking to make sales. For example, let’s just say your UK-based store goes down at lunchtime. No amount of calls at 12pm is going to wake a firm located half-way across the world; tucked up in bed at 12am. It’s a nightmare scenario.

SEO

The importance of SEO over the last 10 years has changed the face of the internet. An increasing number of online retailers are producing fresh content in a bid to become a publishing authority in the eyes of search engines.

However, when a cheap hosting company offers dead links, 404 errors and other harmful downtime to a retailer, what are these search engines going to think? Bounced traffic isn’t going to look good in the eyes of Google or Bing.

Technology Bloggers 404 error

Technology Bloggers 404 Page

Eventually, a retailer could slip down the rankings, and get flanked by its competition. It takes a lot of dedication to work up the search rankings, so don’t let a bogus hosting firm ruin your company and its prospects.

Security

In addition, security should be a top priority for online retailers. The amount of hackers roaming cyberspace is vast and make no mistake – they’re ready to capitalise on unprotected websites. By opting for secure web hosting which features STFP and SSL, a business and its clients can feel assured that all sensitive data is kept in safe hands.

As you can see, the quality of web hosting is an absolutely integral part of the foundations of success for online retailers. In an era of cost cutting and tight purse strings, it might be tempting to lump with a cheap web hosting service from the other side of the world, but in the long-term you may end up opening your wallet more often than you think.

Which tablet works best for you?

23 Replies mariana

With the holidays fast approaching, tech companies are readying new products to woo people looking for the latest hot item in the tech industry. Games consoles, flat screens, and smartphones have had their time in the sun as popular holiday purchases, but this year belongs to the tablet.

Apple dominated the tablet market last holiday season with the introduction of their revolutionary iPad, a wild success with consumers. Since then competitors have tried to emulate the magic of the iPad in an effort to cash in on the new tablet market, but to little avail: HP’s tablet failed to impress consumers, while Motorola’s Xoom tablet has struggled to establish a solid consumer base since its release in January.

But Apple now has two serious contenders to face in the tablet arena: Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet. Amazon and Barnes & Noble, are both wildly successful companies in their own right, are looking to transform the popularity of their digital reading devices into sleek, user-friendly tablets. Now that there are at least three viable tablets to choose from, it’s time to determine which would be the best buy for the holiday season.

Price

We can separate the tablets from each other right from the beginning by looking at their price ranges. The Apple iPad 2 starts at $499, while the Kindle Fire Starts at $199 and the Nook Tablet is priced at $249. Now the disparate prices may be enough to determine a consumer’s purchase; the $300 price gap between the Kindle Fire and iPad 2, for instance, will likely drive many consumers to choose the cheaper tablet.

An iPad 2

An iPad 2 showing off how ‘amazingly thin’ it is

But of course these tablets are priced according to their features. The Kindle Fire and Nook Tablet are much closer in price, and analysts expect that consumers will transfer their digital reader loyalties to the tablets — Kindle users will go to the Kindle Fire and Nook users will likely follow suit with the Nook Tablet. Both tablets will be optimal for digital reading, web browsing, and multimedia functions.

Part of Nook’s more expensive price tag can be attributed to the better hardware: the Nook Tablet has 1GB of RAM and 16GB of storage, compared to the 512MB of RAM and 8GB of storage on the Kindle Fire.

While the iPad 2 stands as the most expensive tablet on the market, it also boasts more attractive components than either other tablet. With a larger screen (9.7 inch), built-in 3G, and access to hundreds of thousands of apps from the Apple store, the iPad 2 certainly offers a host of features that would make any tablet competitor blush. Is it expensive? Yes. Do you get what you pay for? Yes.

Stand-Out Features

There are certainly stand-out features to consider with every tablet. The Kindle Fire may not have the hardware on par with the other two tablets, it will have optimized internet usage through Amazon’s cloud service based browser, Silk. In theory Silk will allow the user to perform multiple functions online at once without overburdening the tablet because part of the computing power will be done via Amazon’s cloud system. The Kindle Fire also has the Amazon name in its favor, one of the most trusted names in online retail.

The Nook Tablet has the distinct advantage of being sold at brick and mortar Barnes & Noble stores. A consumer can walk into a store and purchase a Nook Tablet on a whim, something that the Kindle Fire simply can’t compare to.

Barnes & Noble have also hinted at creating spaces similar to Apple’s genius bar, built solely for the maintaining and assistance for all things Nook related. If there’s any credence to that rumor, it could help jettison the Nook Tablet to the top of the market.

As for the iPad 2, its standout feature is simple: it’s an Apple product. The brand loyalty alone has driven millions to purchase the tablet, regardless of the high price tag. But it remains to be seen if Apple will continue to charm potential tablet users in the face of these newly minted tablets from its competitors.