It’s no secret that internet shopping has given brick and mortar stores a run for their money. Convenience and limited taxes has worked in favor of virtual retailers for years. A new internet tax law, however, tosses the ball back into the court of in-state stores. Sales Tax Law Revised The U.S. Supreme Court has ruled that states can now require sales tax on out-of-state purchases made online. The decision passed with a 5-to-4 vote, with those in favor on both sides of the aisle. Liberal Justices Anthony Kennedy and Ruth Bader Ginsburg were joined by conservative Justices Clarence Thomas, Samuel Alito, and Neil Gorsuch. The ruling removes protections from out-of-state vendors who could operate without charging sales tax, provided that they had no brick-and-mortar presence in-state. The old laws—created before the internet was even a dream–gave online retailers a competitive advantage. They could offer the same products at lower prices than in-state stores. Now, it will be up to the states whether or not they want internet retailers to charge sales tax on items sold within their borders. Some online retailers were already charging sales taxes. Others, such as Amazon, created a system of taxation that included sales tax on direct sales but excludes sales tax on indirect sales. It is uncertain how the ruling will impact such systems. Within the new law lies a few surprises. Small businesses will not be required to collect sales taxes if they generate less than $100,000 in sales and have fewer than 200 transactions in the state per year. This allows small enterprises, such as those you might find on Etsy, to build a following before the sales tax requirement hits. The law will also make available free sales tax collection software to help businesses adjust...
Retail Trends
Amazon Opens Bookshops
As brick-and-mortar and e-commerce companies continue to fight for consumers’ attention and dollars, today’s customer has a plethora of shopping options at his disposal. Though online sales are expected to reach $414 billion by 2018, according to Retail TouchPoints, the majority of all retail sales still occur in physical stores, pushing companies to try to offer their clients the best of both worlds. Consequently, a lot of companies now use a variety of tools and technologies to attract customers and get them to visit their stores or websites again. Omni-channel retailing Amazon is making a foray into the bookshop business, with plans to open a number of brick-and-mortar bookstores across the country, in order to reach a much wider audience for its products. Expansions such as these emphasize the importance retailers now place on omni-channel retailing, where companies offer customers a variety of ways to shop, whether it’s online shopping through a desktop or mobile device, or the traditional retail store. Often times, a customer will visit a showroom or physical store, then they will order the product online instead, so it’s crucial for retailers to offer both options. Same-day delivery Shipping time is another important factor that customers take into consideration when placing an order. The faster the shipping time, the more satisfied the customer and the more likely they’ll shop again. Amazon is already ahead of the curve with same-day and two-day delivery service, with Sainsbury planning to also launch a grocery same-day delivery service to compete with faster rivals. Fast shipping time is crucial for customers who wish to save time and have their groceries delivered to their doorstep. Chatbots In an effort to come up with new and groundbreaking marketing strategies to attract customers, numerous companies have adopted chatterbots—a new...
Easy Package Pickups
New 7-Eleven Service
Some people hate shopping. Like myself. The idea of spending numerous hours walking in and out of countless stores, not finding the items I want, but buying some which I had no idea I needed, exhausts me mentally and physically. The day e-commerce became available, I felt relief. I no longer had to waste my time on never ending shopping trips, but could get what I needed without leaving the comfort of my couch. In the meantime, the industry has evolved. So have its shortcomings. One shortcoming is related to the wait: you place the order and then you wait. Or you stress out not knowing if you’ll be at home when the delivery guy shows up. Because you don’t like having your packages left on your doorstep. Perhaps you should have used your office address? What if your boss announces you that you have to travel on the exact day your package is due to arrive? To help solve this problem, Amazon and 7-Eleven have come up with the delivery locker system in 2011. The program proved to be highly successful, as recently 7-Eleven announced it made space for more lockers at a number of its North American stores where customers can pick up packages from FedEx, and United Parcel Service. In fact, any retailer that ships via UPS or FedEx has the locker as a delivery option. Moreover, the company said they will install Wal-Mart lockers in six locations in Toronto. The locker system is quite simple: anyone who shops online from a retailer who uses UPS or FedEx has the option of having their package sent directly to the nearest 7-Eleven for pick-up. When the package is delivered, the customer receives an email notification along with a bar code to his...
Evolving E-Commerce
Impact on real estate
Today’s retail market is something of a “living” sector, seemingly in a state of constant change as manufacturers and retailers learn to harness ever-advancing technology to attract and retain customers. Over the years, advancements have led to a variety of concerns, some of them significant: The growing popularity of online shopping has at various times fanned real estate owners’ fears that demand for bricks and mortar would wane. Retailers have feared a loss of turf to e-tailers, in particular Amazon and other mega-players. Consumers have feared invasion of privacy as their preferences are recorded and targeted in minute detail. All are valid concerns. But like any advancement, over time technology has also brought brand awareness, better customer service, greater convenience—even a competitive edge. And the refinements keep coming. As the speed of e-commerce increases, the types of technology needed to meet higher expectations grows ever more complex. Same-day delivery of consumer and business goods is one new wrinkle. Once limited to local delivery in big cities (Barnes & Noble has long offered the service in New York City, for instance), this trend promises to spread in the not-so-distant future. But with volume and distance come complications: Extending the reach and volume of same-day service demands new types of machinery and new sorting capabilities—and that presents a challenge not just for the machine manufacturers and logistics providers but for the property owners, as well. In fact, the new machinery requires a variety of changes in space: more complex internal layouts and technical capabilities to accommodate the machinery; larger mezzanine areas with higher clearance for packaging and other back-office tasks; greater life-system components ranging from lighting to HVAC to parking to fire protection because of an increased employee presence. The warehouses, though necessarily more locally based...