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It seems like a no-brainer that sites who can offer "No Sales Tax" should promote this fact, and yet I see many sites don't mention it-what gives?
I wondered the same thing.
We only collect in our own state. Therefore, for 97% of our customers the sales tax aspect is a benefit. Yet WE don't mention that. I guess many sites don't want to thumb their noses at tax regulators.
Of all our 200 competitors, only one ballyhoos "No Sales Tax." It is in one of the 5 or 6 states without sales tax. I don't think it does very high volume.
Small sites tend to copy the big boys and many large retailers are voluntarily paying sales tax.
Wouldn't it be an interesting experiment to prominently display "No Sales Tax Today!" and see how that affects sales?
Fascinating question: Do shoppers in high tax states shop online more than those in zero or low tax states? You would think a 7-8% savings would be a huge incentive to go online. But my own experience shows no correlation. When that question arose here several years ago, others agreed with my findings.
Shoppers. for some reason. ignore sales taxes. (is that true with high ticket items?)
If you are worried about having to explain that you will charge sales tax to the in state business, why not just not even say anything, and credit the sales tax amount back to the customer -- transparently?
If the product is $100, sell it at $100, charge the tax, and add the credit back amount of the sales tax on the invoice. Sure, it will cut into your profits by 2x the tax, but only for in-state business.
Also, it would seem better to say 'Save an extra 7% with our no sales tax', over just 'No sales tax'. It would be interesting to see someone doing a/b testing on displaying this message and not.
[edited by: TowerOfPower at 6:16 pm (utc) on Aug. 9, 2008]