[QUOTE="THE_DRUGGIE"][QUOTE="Laihendi"] How is it rational to restrict online commerce and encourage offline local commerce when consumers are demonstrating a clear and growing preference for online commerce?Laihendi
Because it encourages equality between the two formats and allows small businesses who lack technological support to appear as attractive of an option to their consumer base as online retailers (given that, when you compare the potential consumer base of the formats, offline is at a severe disadvantage since one offline customer lost to online retailers does far more damage than an online consumer switching to offline, this is a particular problem that equity of attractiveness would be more able to solve). Through this, they will gain a little extra revenue so they can build a technological framework to allow themselves to compete effectively in the online market.
In addition to this, people who prefer offline retailers and/or lack the technology to utilize the online market for purchases would benefit.
Online commerce is no way inhibits offline commerce is regions where people do not have access to the internet, so restricting online commerce will do nothing to help those businesses. Offline commerce is at a severe disadvantage because it is an inferior form of commerce. Online commerce makes products from all over the world available to customers all over the rest of the world. There is nothing rational about killing a worldwide market that allows everyone to benefit from the lowest prices possible for the sake of propping up artificial local monopolies. The idea that restricting online commerce will help offline retailers make more money so they can afford to establish themselves online is just stupid.Not necessarily, given that I have stated before that it would allow technologically inferior businesses to catch up and compete without having to go bankrupt in the process. One particular example that this legislation wants to prevent in other areas is bookstores, which have taken a significant hit in brick-and-mortar sales due to online retailers undercutting their prices. In addition to not being able to match prices, tax burdens exclusive to offline retailers caused many chains to go out of business. This situation could have had less casualties if brick-and-mortar stores were not so heavily burdened by taxes.
However, how could the tax burden be decreased without causing a lengthy legislative bout?
Shifting weight equally between offline and online would be one answer, as it would have allowed offline stores to have more attractive prices without sacrificing structure. Unfortunately, the absence of this idea caused massive casualties in the bookstore market, with the exception of massive chains like Barnes and Noble, which managed to squeak by and adapt to the online market.
This legislation hopes to allow more small businesses the option to do what Barnes and Noble did, thus creating an online marketplace that is more diverse, competitive and, in the end, benefits consumers.
Log in to comment