For decades, Internet retailers have exploited a legal loophole that allowed them to not have to collect sales taxes on any products they sold even in states where they have no physical presence. The Supreme Court recently moved to close that loophole in their decision in the South Dakota v Wayfair case. The decision, in South Dakota v. Wayfair Inc., was a victory for brick-and-mortar businesses that were ta competitive disadvantage by being required to charge sales taxes while many online competitors do not. In 1992, the court ruled in Quill Corporation v. North Dakota that the Constitution bars states from requiring businesses to collect sales tax unless they have a substantial connection to the state. The Quill decision helped pave the way for the growth of online retail by letting companies sell nationwide without worrying about having to pay the differing state and local taxes that vary from state to state.

Florida Retail Federation President & CEO R. Scott Shalley had the following statement regarding the U.S. Supreme Court's ruling in the case of South Dakota v. Wayfair:

“The ruling is great news for Florida retailers and the retail industry nationwide. Retailers have been adamant in seeking equity in taxation of bricks and mortar and online sales. This decision paves the way for a level playing field throughout the industry. The Florida Retail Federation looks forward to working with Florida’s legislative leaders and the Department of Revenue to ensure fair and equitable application of the law.”

Published in Media Relations

57.5% of all shoppers use the omnichannel service, but only 31.6% describe it as being a smooth process, according to a new report.

North American shoppers, 92% of whom say they regularly shop across multiple channels, think retailers have room for improvement when it comes to fulfilling online orders in-store.

That’s according to omnichannel retail management software vendor iVend Retail, which on Monday released its Great Omnichannel Expectations 2016-2017 Shopper Survey Report at the National Retail Federation Big Show in New York. The vendor in October surveyed 1,000 shoppers throughout North America—750 in the United States and 250 in Canada—and found 31.6% of those shoppers find picking up online orders in-store to be a smooth process.

“This suggests there is still work to be done to integrate e-commerce, inventory management and in-store systems to improve the in-store collection experience for customers,” iVend writes.

That’s not stopping shoppers from taking advantage of buy online, pick up in store services, however: 57.5% say they use the offering, with 65.3% of those consumers saying they do so to avoid shipping costs. Other top motivating factors for consumers include convenience (29.2%) and being able to return the product instantly if it doesn’t meet their expectations (23.5%).

That is similar to a report done by Internet Retailer last year, which surveyed 217 U.S. shoppers and found 73% picked up an online order in store to avoid having to pay for shipping, while 32.2% cited convenience as a motivating factor.

According to Top500Guide.com, 157 of the Internet Retailer 2016 Top 1,000 e-retailers in the U.S. offered a buy online, pick up in store option in 2015, 101 of which are retail chains. Among the Top 500 largest retailers in North America, 95 offered buy online, pick up in store in 2015, up 50.8% from 63 in 2014. 74 retail chains offered the service in 2015, compared to 51 in 2014.

iVend’s data finds that shoppers want retailers to offer a more digitally connected in-store shopping experience, with nearly half (46.4%) saying they want retailers to offer free in-store Wi-Fi and 33.5% saying they want personalized promotions sent to them on their phones the moment they walk into a store.

The survey also found:

  • 36.9% of consumers say kiosks or digital help desks would improve their in-store experience.
  • 36.5% continue to research a product after purchase to determine if they got the best price.
  • 50.5%, feel equally rewarded with loyalty rewards online and in-store compared with 40.3% who felt that way a year ago.

BY MATT LINDNER
https://www.internetretailer.com/2017/01/16/retailers-havent-perfected-buy-online-pick-store-yet

Published in Retail News