Com 155 Virtural vs Brick Mortar Shopping
Taxation Complications As A Result of Brick-and-Mortar Shopping Versus Virtual Shopping
COM 155
Taxation Complications As A Result of Brick-and-Mortar Shopping Versus Virtual Shopping
Online sales totaled $176 billion in 2010. This is an increase over the previous year of over 11 percent and, online retail sales are predicted to grow an addition 10 percent a year until 2014 (Biederman, 2011). Online sales have affected the way businesses conduct their operations and require strategic planning to obtain future growth. It has been shown that 36 percent of online shopping consumers continue to shop in local brick-and-mortar stores; however, 57 percent of these consumers have claimed to reduce the number of trips to brick-and-mortar stores in favor of virtual shopping (Louong, 2006). Increases of virtual versus traditional store shopping require businesses to conquer multichannel storefronts and contributes to the loss of sales tax revenue for local communities. Online or Virtual Store Shopping This year online Black Friday sales reached over $800 million; up 9 percent from the previous year. On Black Friday, over 50 million American visited online retail sites, an increase of 35 percent versus 2010 shopping statistics (Burton, 2011). Cyber Monday was an even bigger shopping day bringing in a record of $1.25 million dollars (DeMarco, 2011). Virtual shopping offers many conveniences not offered by traditional brick-and-mortar shopping. Virtual shoppers are able to save valuable time, effortlessly able to quickly compare products and prices through numerous retailers at a click of a mouse. The varieties of products online are almost countless and far outweigh the shelf space at retail stores. Click and mortar shopping often provides product reviews, specifications, and technical information not found in a traditional shopping environments. Shoppers that do not enjoy the social aspects of traditional shopping are often more
COM 155
Taxation Complications As A Result of Brick-and-Mortar Shopping Versus Virtual Shopping
Online sales totaled $176 billion in 2010. This is an increase over the previous year of over 11 percent and, online retail sales are predicted to grow an addition 10 percent a year until 2014 (Biederman, 2011). Online sales have affected the way businesses conduct their operations and require strategic planning to obtain future growth. It has been shown that 36 percent of online shopping consumers continue to shop in local brick-and-mortar stores; however, 57 percent of these consumers have claimed to reduce the number of trips to brick-and-mortar stores in favor of virtual shopping (Louong, 2006). Increases of virtual versus traditional store shopping require businesses to conquer multichannel storefronts and contributes to the loss of sales tax revenue for local communities. Online or Virtual Store Shopping This year online Black Friday sales reached over $800 million; up 9 percent from the previous year. On Black Friday, over 50 million American visited online retail sites, an increase of 35 percent versus 2010 shopping statistics (Burton, 2011). Cyber Monday was an even bigger shopping day bringing in a record of $1.25 million dollars (DeMarco, 2011). Virtual shopping offers many conveniences not offered by traditional brick-and-mortar shopping. Virtual shoppers are able to save valuable time, effortlessly able to quickly compare products and prices through numerous retailers at a click of a mouse. The varieties of products online are almost countless and far outweigh the shelf space at retail stores. Click and mortar shopping often provides product reviews, specifications, and technical information not found in a traditional shopping environments. Shoppers that do not enjoy the social aspects of traditional shopping are often more
References: Banks, M. (2011). Retail giant files suit to enfore tax laws against online giant Amazon.com. Retrieved from http://www.associatedcontent.com/article/9122299/retail_giant_files_suit_to_enforce.html Biederman, D. (2011). NO SHELF LIFE FOR TAXES. Journal Of Commerce (15307557), 12(23), 28-32. Retrieved from http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=8a316c5d-2ea8-473e-aea3-adf5b09f7287%40sessionmgr13&vid=14&hid=102 Begany, T. (2011). Is online shopping killing brick-and-mortar? Retrieved from http://financialedge.investopedia.com/financial-edge/0711/Is-Online-Shopping-Killing-Brick-And-Mortar.aspx#axzz1exlIJwW7 Burton, A. (2011, November 28). Black friday online sales jump 26 percent: Comscore. Retrieved from Reuters website: http://www.msnbc.msn.com/id/45457512/ns/technology_and_science-tech_and_gadgets/t/black-friday-online-sales-jump-percent-comscore/ DeMarco, A. (2011, December 4). Online holiday sales hit nearly $6 billion for the week. Retrieved from Forbes website: http://www.forbes.com/sites/anthonydemarco/2011/12/04/online-holiday-sales-hit-nearly-6-billion-for-the-week/ Gross, D. (2011, November 28). Black friday boom masks physical retailers’ desperation. Retrieved from Yahoo Finance website: http://finance.yahoo.com/blogs/daniel-gross/black-friday-boom-masks-physical-retailers-desperation-125410165.html Luong, K. A. (2006). Online shopping. Retrieved from http://www.ocf.berkeley.edu/~kaluong/index.php Parker, Ph.D., R. A. (2010, August 8). The effects of online shopping. Retrieved from Rea-Parker.com website: http://www.rea-parker.com/documents/Internet-Sales-CA-Economic-Impact-Report-August-24-2010.pdf