I need some bearings for a project I'm working on, local supplier $27 each plus Gst, I'd have to pick them up. A pack of 10 via Ebay delivered for just over $16.

Possibly the local ones will be a higher quality but I doubt it. The local supplier is part of a large company and would be buying and shipping in bulk and should get some savings there.

In the past I've needed some bluetooth modules, that well known billionare retailer who blames the Gst sells them for about $30 each, a similar module via Ebay is available for around $1.50 each with free postage.

When I buy online the Gst is not a factor, prices which are a fraction of the local price and a far greater range of options are the driving forces.

R0bert

'afternoon all...

The claim by one contributor herein that,'...I've always had courteous service...' is indeed, lucky for them.

It's true, I've been fortunate enough to have exceptional service from some sales people. Though often, that terrific service is not matched with essential product knowledge.

Therefore, is it not dichotomous, that 'good service', should come with sound 'product knowledge' also ?

A highly desired outcome, I would've thought.

Nevertheless, there does appear to be an accord with us all, that pure economics does play a very important part as to whether we purchase our goods 'on line' or at the local store. After all a 'buck' is a 'buck' for all of us, I'd suspect ?

Further, what other considerations are there, that may induce many of us to purchases on line ?

Perhaps, it's because we have a much broader range/options of products; the convenience of shopping from home, together with delivery right to our front door. And, a decisive reason for some folk, there's total anomymity, thus privacy.

So would it be fair comment, in reply to the constant bleatings of these huge retailers, to suggest a couple things.

Try to provide a better skilled and more qualified 'sales associate' (as one correspondent stated above, a formal, 4 X year training course for all staff)

Where possible, reduce your profit margins; 'Prise' the bosses out of their office, on to the sales floor, observing, correcting and monitoring. And by so doing, manifestly aiding their customers.

Provide superior fringe benefits, by offering a better product warrantry period, with a reassuring back-up protocol, in a dedicated service department. In other words, give your customer a bigger bang for their buck.

Online shopping was always goimg to kill retail and, it will only get worse, with GST making little difference.

For the record, I think GST shoukd be charged on all purchases, online or in store.

As for decling service, what do we expect, when pretend shoppers waste shop attendants time, which must be paid for, only to find what they want, have the pros and cons explained, then go online and buy it.

I shop online myself, but I refuse to sourse my info from a paid staff member.

I warned of this years ago, but as usual I was shot down.

Retail days are numbered and the next big shift will be the likes of Coles and Wollies going into sheds, not shopping centers.

It's coming.

I don't do much shopping online. When I purchase an item, say, out of the United States, where does the transaction take place? Here? There? Am I taxed in the USA? If I go to the USA, buy myself a $100.00 item (say some sort of consumer electronics) and mail it home to myself, do I have to pay GST on that? What if I send a friend who lives there $100.00 to do the shopping and mailing for me?

I genuinely don't know the answers, but I think they have some relevance when it comes to the application of the GST to online purchases.

As for Coles and Woolworths disappearing into sheds, would that open a new niche for the small retailer? If I want an apple, or a bottle of milk, I tend to go to Woolworths because they are cheaper and easily accessible. I can bypass the cashiers and go to the self-serve checkouts, which I can't do at the corner store a couple of hundred metres away where the lady behind the counter is rude and charges double for the privilege of her bad service. However, without a supermarket nearby, where would I make those small purchases? I doubt I'd do it online - ordering an apple a day in advance and waiting around in the three-hour delivery window to have it dropped off. I'd suck it up, pay a higher price and buy from the little guy. Maybe not the MOST local (because her service would be unlikely to improve), but the next corner store along isn't so bad. Alas, there are four large supermarkets for me to pass before I get there.

What percentage of our supermarkets' income comes from small purchases? Could these small purchases keep a smaller retailer afloat?

Otokonoko, you say would these small purchases keep the small retailer afloat.

The simple answer is no.

You see wages, rent, consumables lease payment, etc etc, all represent a percentage of turnover and, when the percentage gets too high, the business fails.

Now im talking butcherwhosos here, It costs little more for an employee to make a $60 sale, as it does a $5 sale, esspecially in our Imdustry that generally has good service.

So once you factor the costs against that $5 sale, you are going backwards, unless you get enough $100 sales to make the numbers up.

As an industry, our average sale has fallen, thus amplifying the problem.

Another problem looming for retail is wages. They are too low, but the industry simply can't afford higher wages, hence, the auto checkout, soon to be, auto trolley.

Going back to butchering, in about 2000 a butcher was on about $17 per hour and an electrician was on about $17.50.

Now, the butcher has risen to about $21 and the electrician about $45.

Why, because food is one of the few items that can be substituted, for either an imported item, or an alternative.

Also, people can go without a new dress, but petrol is a must.

In years from now you may see the majors leaving retail altogether amd going soley online, however, they would have to drop meat, seafood and produce. May happen one day, who knows, it will depend on costs.

*they would have to drop meat, seafood and produce. May happen one day, who knows, it will depend on costs.*

Not so, Rehctub. Already there are companies in places like New York,
doing home deliveries of produce, meat, seafood, bread, milk, the
lot in one order. The thing is, this suits some people perfectly,
others not so. So we will see both continue, giving consumers more
choice.