Memo to Small Retailers: Stop Whining About Online Sales Taxes

In recent days, there seems to have been a bunch of complaining by small retailers about online retailers not being subject to sales tax in the state into which the goods are shipped.

We get a little annoyed with this sort of complaining, because it tells us that a bunch of small retailers haven’t figured out how to 1) survive on service, if not prosper (yes you can) and 2) not try to compete on price on the goods that they sell that are also sold online.

The online retailers have inherent advantages….no physical overhead, no gas cost to get to their store, and no sales taxes in most states (not all). All told, this might be as much as a 20% disadvantage, but not to worry.

But, if you’re a retailer, you can stock goods not available online that are unique to you, and you can render world class service if you have the right people. You WILL build a loyal cadre of customers., and it will grow as the loyalists tell others. It just takes a little longer.

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