Sunday, October 6, 2013

Tax On Online Purchases

I don't know about you, but when I want to purchase something that is quite expensive, I turn to Amazon or eBay to see if I can find this product for a cheaper price. Not only will it be cheaper than the store, but I also would not have to pay for tax and even sometimes you can qualify for free shipping. I think that sounds like a good deal to me. Unfortunately, if they start putting taxes on online purchases, I don't think online companies will continue to benefit from it. Some people will just find it easier and cheaper to just buy the product at the store and not have to wait for it to be shipped.

When it comes to buying beauty products, you may get very lucky finding items cheaper on different websites.


As you can see in this picture, the original price of this product is $28.89 with tax. You can find this item on Amazon or eBay for a few bucks cheaper. If these websites were to add taxes, customers will only be saving about 3 dollars. Instead of saving those three dollars and having to wait 4-5 days for the item to arrive, I think customers are just going to buy the product at the store. Unless they find a good deal, for instance the product on eBay, you would still be saving $9.21.

I honestly don't think it's going to have a major impact because of the way technology is now a days. People like to purchase things at home because sometimes they don't have the time to go to the store, or maybe they're too lazy. They can even purchase items with just a click on their phone ! (Guilty of doing this many times.) I believe this taxation may bring down the revenue for these websites, but not to a point where everyone is going to start purchasing things at the stores instead of the internet.

2 comments:

  1. I agree with you that people will still opt for the benefits of technology. Purchasing things at home is still far more convenient than having to get dressed to go out to the stores and look for the products that you want to buy. And though taxation may affect online sales slightly, I still think that people will always go for the easier option of buying products online through multiple, easy media devices.

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  2. Amazon is supporting the collection of Internet sales tax. I do think that some item sales which are higher priced such as computers and watches will be affected once the new laws are implemented. However, I think Amazon and other online retailers will still be competitive as they will have a lower price because of their lower operating expenses.
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