Everyone in America loves a bargain, especially in retail. However, retail sales have changed a great deal in the last decade. There has been an increasing retail trend to buy products online without having to leave home to shop. This is in part why internet warehousing sites like Amazon and eBay have been so successful. The appeal of many of these websites has been that they offer items that people want at great prices which can be purchased any time of day or night.
Online Sales Tax Guidelines
In late June, The U.S. Supreme Court made a ruling that changed Internet retail Sales tax. It now allows for taxes to be charged with online shopping. In a 5-4 ruling, The United States Supreme Court decided in favor of changing the law that exempted online retailers such as Amazon from having to charge sales tax to their consumers.
The ruling was hailed as a great breakthrough for state tax base treasuries who have suffered from a significant loss of income from online retail sales. Internet sales known as eCommerce has become a big booming industry. The latest data revealed that retail online sales are at $500 Billion dollars annually. This number was expected to grow significantly in the years ahead with consumers finding more things they can purchase online.
Additionally, this new state sale tax ruling was a great relief for big and small box retailers who have an actual retail location. These businesses have been getting hit with a significant loss in revenue because people have been able to get tax free items online. Retailers like Amazon and eBay have already been attributed to causing significant damage to retailers like Sears, Toys R’ Us, Macy’s, JC Penney, as well as many others.
The new ruling allowed for a more level retail marketplace where all retailers will have to charge sales tax. For states like Oregon who do not presently have a sales tax on many things, they could now look to the internet as a possible revenue boost. Many box store retailers now have a slight advantage to be able to offer a product for immediate pick up by consumers. This can help level off a lower cost item from an online source if the person would like to have it right away.
Up until recently, one of the big advantages of buying from these eCommerce websites, was a lack of state tax on items bought. Prior to a new Supreme Court ruling, online retailers did not have to charge buyers an internet retail sales tax for the goods they sold online. This has made them an attractive alternative to in store purchasing because in store purchases charge sales tax for every sale they make.
This cost difference of no sales tax often offsets the cost of shipping which allows online retailers to undercut some of the national box store retailers. This has created an imbalance where some companies have thrived when they would otherwise need to be more competitive. It has made many national box store retail companies struggle to stay afloat.
Outsourcing Can Help Companies Survive
The good news is that companies that are concerned about potential losses from the new U.S. sales tax for online sales have alternatives they can do to help keep the bottom line costs lower. One of the more common trends is the use of company outsourcing for customer support. Outsourcing can easily be handled for things like call centers, order processing and other tech services.
In fact, one of the primary uses for outsourced customer service in the retail industry is call center professionals for order processing. Using outsourced customer support from countries like the Philippines can be very beneficial for U.S. retailers. These services help companies significantly lower the cost of customer support.
Using professional outsourced services from countries like the Philippines for call centers, order processing, and other tech services can help bring bottom line costs down significantly. This reduced cost can help a company rebuild and thrive again. The first step for using professional outsourced services is to analyze any company needs that could be handled by using an outsourced customer support services.
Throughout much of the U.S. retail industry, small and large companies have found that using professional outsource services has offered their company a significant cost benefit. High quality outsource services allows companies to operate and grow with less financial burden without compromising quality of services.