Too Taxing: Future of online shopping?

Let’s face it, our states and government need money and the only way to get it is to increase taxes. Looking for ways to basically increase taxes without seemingly to raise taxes has been a challenge in our political environment especially since we are still recovering from the recession. However, there lies a large arena that has been shielded from sales tax collection until now, and that is online shopping.

The State of California has been collecting sales tax for online purchases since September 15, 2012, after many bitter battles with online giant retailer Amazon. Other states are sure to follow, so the question begs, will the collection or additional charges paid for sales tax have an effect on online shopping? I say in the long run, no! It is my opinion, that the collection of sales tax won’t even make a ripple on online shopping.

Although many people shop online as a way to save money because prices are lower because many retailers are able to pass the saving of not having a brick and mortar establishment on to the customers. Even with the collection of sales tax, prices still might be better online. But if prices were the only reason people shop online, then maybe it would make a dent in sales. But I don’t think so because price is not the only reason people shop online. People shop on online for many reasons besides price:

• Time: quicker than going to brick and mortar store
• Convenience: online store open 24/7 even holidays
• Ease of comparison of prices
• Increased selection and variety of items
• Less work: no traveling, parking, no waiting in lines etc
• Availability even if live in obscure out of the way places
• Global accessibility, can shop in any country
• Private, safe and secure
• Can have shipped anywhere with click of button

For myself, I shop online because of time or lack thereof. My work (9-6) and school schedule ( 6:30-9pm) does not allow for much shopping especially during the times stores are open. And if they are open late, like Target and Wal-Mart, I am just too tired to think about going in a store to shop. And on weekends, I have much better things to do, like homework and studying and if not tied down with that. I want to do something enjoyable, like a concert, outdoor festival or even a movie, not go shopping. Therefore, it is a necessity for me to do my shopping online. I am sure there are many others who do so as well.

Now that I have said that much, it is not to say that online retailers won’t have to market themselves to stay where they are. Times are constantly changing and people change the most, their tastes and preferences. So just like any other retailer, online retailers need to stay abreast of what their customer preferences are and adapt, by making changes to how they market themselves and how they relate to their customers to continue to satisfy their needs and desires.

Relating to customers is something that Amazon does very well. Amazon tracks what each customer buys and using their Business Intelligence Software, makes predictions on what other items the customer might like and offers suggestions.  I believe Amazon does this better than any other online retailer. Sometimes I think they know me better than I know myself.

So the question remains, will the additional tax be too much for online shoppers? No, in my lifetime, the tax rates have gone up along with everything else and I still buy and consume what I need, want and desire, maybe even more than I should by looking at my latest credit card bill. And I believe people who shop online will continue to do so as well.

Happy shopping,

Eva Prada

http://www.sensibleemarketing.com/

http://www.businessweek.com/ap/2012-09-13/tax-on-amazon-purchases-in-calif-dot-begins-saturday

Top 10 Reasons to Shop Online vs. Shopping In-Store

http://www.guardian.co.uk/lifeandstyle/2011/nov/27/online-shopping-guide

http://anamikas.hubpages.com/hub/Online-shopping-sites-benefits

http://ezinearticles.com/?Why-Shop-Online?-Top-Ten-Reasons&id=4073689

E-Marketing: Decision to Buy?

We all know e-marketing has enhanced the way businesses do business today. Has it changed the way consumers buy? Absolutely! With the creation of the web, information is readily available at our fingertips, and now that information is mobile and available wherever we are.

So how does e-marketing fit into a consumer’s buying decision?  First let’s recap the buying decision process:

First the consumer realizes and recognizes they have unfilled need or desire. Let’s say you can no longer get your car in your garage anymore due to all the stuff in your garage. In other words, you need to clean out your garage and discard some things or find a place to store all your “cool” stuff that you can’t bear to get rid of.

That need or desire triggers the next stage in the buying decision process, the need/desire development stage. Sometimes this stage is seamless, like for example when one is thirsty; one will look for beverage options without realizing it or researching options. Others like our garage example will require both an internal, “I don’t want to get rid of my “cool” stuff, I may need it later” search. And external search, look for information on other storage options and the evaluating those options.

And lastly, once options on fulfilling that need or desire have been determined, the “buying decision” or exchange takes place and we use what we have purchased. Afterwards, there will be some post-evaluation which will influence then next buying decision.

So the question becomes, “Has e-marketing changed any of the steps in the buying decision process. Well I say yes!  Let’s look at our garage storage issue.

Back in the old days, and yes, I’m showing my age, when someone wanted to buy something, there was not much choice, but to either look in the Yellow Pages (I know, young people have no idea what the Yellow Pages were) or drive around to stores and such.  Back to our storage dilemma, after we have recognized the need of being able to get the car into the garage, we evaluate our options: Clean out and get rid of stuff or move it somewhere else. For our purpose, we want to keep our stuff; after all we saved it because it’s good stuff.

So now we move on to the development stage. We need some kind of storage place, preferably one we can store ourselves. In the old days, we would get out the ole Yellow Pages and look under self storage and start calling locations to see if any are available and hopefully find one near our home.

Fast forward to today, I went to the internet and searched self storage locator and up popped several storage places such as Public storage and one, that was quite interesting; a self storage locator. After clicking on http://usselfstoragelocator.com  and entering my zip code, I was rewarded with all kinds’ storage places from all different companies. This online directory listed the sizes and prices of units and important to me, a map showing their locations in regards to my home. Thus e-marketing and that online directory made my external search for options very easy and I even able to move to next stage in the buying decision and book my storage unit; thus resolving my need for getting the car back in my garage.

Has E-marketing changed the way this transaction would have taken place?  Absolutely, it allowed me to handle my entire buying decision process right at my computer, now if only it would be that easy to get the stuff moved to the storage unit. One can only wish.

Now that was just a simple explanation, where one was actually looking for something to satisfy a need or desire. I think that e-marketing today, also helps us become aware of needs or desires that we previously were not aware. This is what just happened to me. While I was searching for storage options a pop up box appeared. It asked for my zip code and thinking about my storage dilemma, I entered it. Wow to my surprise, it opened to a site for last minute travel. Now travel was the last thing on my mind as I was looking for storage options. But now after seeing the site, and the vacation options, I have a new need-a vacation. Okay, a new desire, I know, my husband didn’t buy that one either.

So not only can e-marketing make the buying decision process easier, in how it helps us search for options. But e-marketing can actually stimulate the need or in my case desire and trigger the buying decision process. Vegas anyone?

Desiring a vacation,

Eva Prada (formally Berbrick)

http://www.sensibleemarketing.com/

http://usselfstoragelocator.com/

http://www.brickmarketing.com/define-directory.htm

http://www.lastminutetravel.com/hp.aspx